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Does anyone have an idea as to much does overhead typically amounts to monthly if you have an office based practice? I'm planning on ultimately being an endocrinologist or rheumatologist, and I'm reading about the typical salaries in those fields but I understand that overhead is usually a substantial portion of the salary.

 

Any help would be greatly appreciated :)

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30-40%. if you are in a group and share an MOA you can cut down to 20-25%.

 

then take away more for taxes and you realize medicine wasn't a great idea after all given you'll be at least 28 when you're done and 30 earliest (family medicine) before you finish paying your debt and making money. As a specialist you'll need GPs to refer to you too.

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If you're a rheumatologist or endocrinologist, overhead probably isn't that high. However, this also depends on whether you are salaried (in an academic position) or in private practice. If you're in private practice, it'll take time for you to build up your practice. You probably won't be making that much initially and you'll need to get your name out there to family docs. This can be hard because family docs are used to referring to one or two specialists in each field, i.e., I usually refer to xyz ophthalmologist and abc gynecologist. However, if you're quick to see patients, nice to the family docs, and offer good opinions, your practice will fill up quickly. Family docs refer to specialists they feel comfortable with and if you are mean to them, either on the phone, or in your letters, you can kiss future referrals goodbye. If you're in academics and salaried, you won't care, but if you're in private practice, you will care because your bottom line will suffer.

 

I have one ophthal who I usually refer to. He's a new grad, but quick to get into and I can always get quick phone consults from him. He also refers patients who need a family doc to me, so we've established this mutual beneficial relationship. Don't be grumpy just because you think you can as a specialist. It'll bite you in the butt.

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then take away more for taxes and you realize medicine wasn't a great idea after all given you'll be at least 28 when you're done and 30 earliest (family medicine) before you finish paying your debt and making money. As a specialist you'll need GPs to refer to you too.

 

Or you could go into another career with similar training (eg a PhD in biology) and have smaller debts that take longer to pay off, and never make as much money even after overhead and taxes.

 

Just sayin'.

 

Whatever the case, medicine is clearly not a very good way to get rich quick.

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30-40%. if you are in a group and share an MOA you can cut down to 20-25%.

 

then take away more for taxes and you realize medicine wasn't a great idea after all given you'll be at least 28 when you're done and 30 earliest (family medicine) before you finish paying your debt and making money. As a specialist you'll need GPs to refer to you too.

 

At 28, one can be an official family doc. 4 years undergrad + 4 years med + 2 years residency. But the money you make during residency lands you a net income which is as good as people who are grossing ~80k a year (once you factor in taxes). But last I checked, people in their mid 20s won't be making 80k a year anyway, so other options wouldn't have been quite as good.

 

Or you could go into another career with similar training (eg a PhD in biology) and have smaller debts that take longer to pay off, and never make as much money even after overhead and taxes.

 

Just sayin'.

 

Whatever the case, medicine is clearly not a very good way to get rich quick.

 

Looking at this from strictly a financial stand point... there really isn't a better financial career out there that is sitting there waiting to be taken... Everyone always says business, but business is an area with a HUGE number of undergrad students and in the next couple of years, an MBA will be average to have. You'll need to be even more talented than a doctor to make the same money, and even more so to make more.

 

It's safe to say that had doctors not gone into medicine, they'd be making significantly less money.

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Since when do residents not pay taxes on their salary?

 

I believe you still pay taxes, but due to the large amount of tuition credit you will have built up it esentially gives you your taxes back for the first couple of years (might be dif in Manitoba... Due to the lower tuition for med).

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I believe you still pay taxes, but due to the large amount of tuition credit you will have built up it esentially gives you your taxes back for the first couple of years (might be dif in Manitoba... Due to the lower tuition for med).

 

Yeah roughly you have paid roughly 50-75,000 in tuition which gives a corrresponding tax credit at 18%. At some schools you are still considered a student as well, which gives you an additional potential tax credits, tax credits on any equipment you bought, plus interest on any student loan etc....

 

Probably won't be pay any tax in your first year at least, probably won't a lot in your second year in many cases either. If you are in a family medicine residency you are then done :)

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Looking at this from strictly a financial stand point... there really isn't a better financial career out there that is sitting there waiting to be taken... Everyone always says business, but business is an area with a HUGE number of undergrad students and in the next couple of years, an MBA will be average to have. You'll need to be even more talented than a doctor to make the same money, and even more so to make more.

 

It's safe to say that had doctors not gone into medicine, they'd be making significantly less money.

 

that was pretty much my point.

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