Medical Professionals: Planning for a Career Pivot or Non-Clinical Pursuits
A 2024 survey by CHG Healthcare found that 62% of physicians had made a career change since 2022. Better work-life balance, more schedule flexibility, and a better workplace culture were the top three motivating factors among doctors who had made a switch. Many studies have also noted a high level of burnout among medical professionals since the 2020 pandemic.
Most doctors are well-positioned for a career change because of their education, professional skills, and financial resources. But it’s still important to work through a careful, three-step planning process to make sure your new job will improve your ROL without disrupting your long-term financial planning.
Step 1: Research
Your doctorate opens a lot of doors outside of the medical profession. But if you still have a passion for healthcare, you might consider some non-clinical jobs, such as:
- Consulting: Use your expertise to advise healthcare companies, pharmaceutical firms, or venture capital funds.
- Health Technology: Work with startups or established companies to develop new medical devices, software, or digital health solutions.
- Hospital Administration: Transition to a leadership role within a hospital or healthcare system, where you can impact patient care on a broader scale.
- Medical Writing: Contribute to publications, edit studies, and position yourself as a thought leader.
- Telemedicine: Embrace the flexibility of remote work by providing virtual care to patients.
- Utilization Management: Work for insurance companies to review how medical services and benefits are covered.
- Teaching: Pass on what you’ve learned to the next generation of professionals.
If none of these jobs sound appealing to you, it might be worth reviewing why you’re contemplating a career change in the first place. Moving to a different hospital or working towards a new specialty might be the best solution for your work-life balance issues. Doctors who have been practicing a long time might also consider starting their own practices and splitting their time between seeing patients and working as CEO.
Step 2: Budget
Experienced doctors probably enjoy their standard of living. Younger doctors may be aspiring to that comfort while also trying to pay down their student debt.
Wherever you find yourself financially, make sure to take in the full measure of how a career change is going to change your finances, including:
- Income
- Retirement benefits
- Health insurance
- Taxes
- Housing
- Transportation
A potential career change is also a good reason to review your current monthly budget. Do you really use all those streaming subscriptions? Will you still be able to afford that gym or country club membership? Are you carrying out too many meals?.
Finally, if you are still early in your medical career, consider how a career change will impact your ability to tackle debt and invest in your future. Taking an administrative job at a medical nonprofit might be more fulfilling than your current position. But it also might add a decade of interest to your student loan repayments and make your mortgage difficult to manage.
Step 3: Save
As burned out as you may be, taking a few months to build a financial runway into your new career might make the transition a little easier.
A savings cushion can help to pay for training, certification, relocation, or an income gap without dipping into your long-term savings.
If there’s going to be a gap in your health insurance, you might need to pay for short-term coverage.
Starting your own practice will require investments in marketing, legal fees, office space, and people.
In general, you should anticipate needing 6-12 months of essential living expenses in your runway fund, but your preferred lifestyle, your family, and the size of your transition could affect just how much of a runway you need.
Let’s meet to review your financial situation and work through our life-centered planning tools to find the best path to your next job.
Real wealth starts with real life, so don’t just plan the numbers. Plan the life.
Keith Demetriades, CFP®, CKA®, believes real wealth starts with real life. He created the 4D Client Experience to help guide decision-making and ensure your money works as a tool to support your life. If you’re ready for a financial plan that reflects how you live and what you’re building toward, contact Keith at (806) 223-1105 or visit Kingsview Partners.
Disclaimer: The information provided in this blog is for educational purposes only and should not be considered financial advice. Please consult a qualified financial advisor to discuss your specific situation and needs. Past performance does not indicate future results, and all investments carry risks, including potential loss of principal. Any financial product or strategy references are purely illustrative and should not be construed as endorsements or recommendations.
