The Recession + Medical School

[eatwellcanada]

Hey everyone,

 

These times are testing for everyone - especially with the economy and all. Recent data has shown that this recession may last for a couple of years, and that we might not have even seen the grunt of it..

 

I was wondering if anyone has or at least have thought about changing their minds about studying Medicine in the States / abroad, due to the recent developments in the economy. I've heard that banks are being more hesitant in providing LOCs / Loans in this day and age, and its increasingly harder to secure funding of any sorts...

[A-Stark]

Not studying in the States, but I'm rather concerned about (1) deflation and (2) interest rates. Moderately expanding credit/money supply = good.

[Octavius]

Yeah liquidity is messed. I think it'll be ok, from the looks of it, we're the safest investment around. My only concern is that they're going to charge predatory interest rates. The news has been spouting a deflationary spiral last year but I think it's just BS. If anything it'll be inflationary because of all the money they're printing and the low interest rates they have set right now. Prices are falling though (but not on ordinary staples), most of the deflation is occuring in bubbling assets (housing, oil). In any case, I would suspect recession will jack up medical school applications for those super ambitious because it is a low risk and high return field, also I would also suspect government slashing seats as a way to conserve money. We've been ****ed.

[da_birdie]

Here is an interesting Canadian finance/real estate website that a FP colleague passed to me:

http://www.greaterfool.ca

 

The government is in deficit spending and I think it is likely that some provinces will see de-listing of health services (eg chiro, eye exams, etc). With the aging population and shortage of physicians, the government will have to spend $ to expand training of new physicians, and/or expand scopes of practice of allied health professions. We're already seeing government allowing nurse practitioners to operate independently in NP clinics in Ontario; while in BC the government is looking to Naturopaths as an alternate solution.

 

Physician income will likely remain stable during this 'economic downtown', as the fee schedule has already been set (negotiated every 3-4 years). However, it will be hard to bargain with the government for any increase in remuneration because 1. governmnet is in deficit 2. lack of inflation (at least not yet). Also, in the foreseeable future there should be more than enough patients to keep physicians (including family docs) busy.

 

I won't be surprised if the work load for hospital-based physicians (including specialists) go up, as hospitals begin to hire clinical managers to help "analyze" length-of-stay and assist/expediate discharge or transfer of patients (it is already happening at the unit I work in. Physicians can certainly feel the pressure to discharge). The hospital/health region gets paid bonuses by the government to hasten discharge/transfer from Emergency Departments, that puts pressure on the downstream units (eg Hospitalist service, Medicine, Transitional Care Unit, etc). Hospitals will likely try to get the most service out of the existing physicians, before hiring new staffs to add onto their limited budget.

 

~ FP @ BC

[Octavius]

Good post. Nevermind then, our taxes are just going to go up LOL. I forgot about the demographics. Although I do wonder if the government will see past the $$$.

[Wolvenstar]

Just repeating what others have to say. Financing a med school applicant is not only a safe investment but it is also a well-paying one for the banks. The amount of money needed at the end of it by the med school applicant is enough that it can compare to home-buyers, however there is more financial safety in financing a student's education who is going to be entering a high-paying field of expertise. Government's and banks are trying to encourage both borrowing and spending in a number of ways (including low interest rates, specially on housing), so I believe we will see it become easier to gain financing for medical school.

 

There is also the statistics showing that when countries hit a recession there is an increase in students at universities and colleges country wide. Mostly people who are unsure of their job safety, or have lost a job, feel the need to become more educated and be eligable for a job with higher security.

 

The bank's way of thinking is that there is going to be more "safe" money to be made by investing in students.

 

 

Oh and to answer the orignal question, I still plan on applying to the States and probably across the pond, depending on a few variable unrelated to the current economy.

[da_birdie]

Recession & deficit spending has also resulted in:

 

Hiring freeze in Alberta worries cancer doctors

February 3, 2009

http://www.calgaryherald.com/Health/Hiring+freeze+Alberta+worries+cancer+doctors/1246832/story.html

 

The Tom Baker Cancer Centre, already short a handful of oncologists, can't hire any doctors this year due to a hiring freeze, potentially hurting recruitment efforts and patient care over the long term, the head of the centre warns.

 

The provincewide freeze comes as cancer doctors in Calgary expect at least 6,500 new patients this year.

 

However, some people seem to be giving themselves raises:

Despite deficit, Alberta’s health superboard gives itself 25% pay increase

March 26, 2009

http://albertatalks.ca/2009/03/26/despite-deficit-albertas-health-superboard-gives-itself-25-pay-increase/

 

In a meeting in Red Deer last night Board Members of Alberta Health Services walked away with a 25 per cent pay increase. The 15 person-board unanimously approved the raises themselves at the meeting in Red Deer.

 

This boosts the part-time job’s honoraria from $40,000 annually to $50,000 annually and the per meeting compensation to $750. Chairman Kenhughes meanwhile will be getting a boost to $75,000 annually up from $60,000 annually and will walk away from each meeting with $1000 in compensation.