Docs Want to Call It Quits: The Perfect Time to Incorporate as a Micro-Business

Docs Want to Call It Quits: The Perfect Time to Incorporate as a Micro-Business

In an era where many of you are contemplating job changes, now is an ideal moment to explore the benefits of forming a professional micro-corporation. The 2024 Doximity Physician Compensation Report offers a deep dive into the current state of physician salaries, job satisfaction, and the myriad challenges facing the U.S. healthcare system. Based on data from over 150,000 survey responses collected over five years, the report provides valuable insights that are particularly relevant for physicians considering a career transition.

Key Findings from the Report

Physician Compensation Trends

The average pay for doctors rose by 5.9 percent in 2023, rebounding from a 2.4 percent decline the previous year. Despite this increase, significant disparities remain in pay based on gender and specialty.

Gender Pay Gap

The gender pay gap persists at 23 percent, with male physicians earning nearly $102,000 more on average than their female counterparts, even after controlling for specialty, location, and years of experience. Although this gap has narrowed from 26 percent in 2022, it still highlights a critical equity issue in physician compensation.

Workload and Burnout

The report reveals alarming levels of physician burnout, with 81 percent of physicians feeling overworked, 59 percent considering changing their employment situation, and 30 percent contemplating early retirement. The primary source of burnout is administrative burden rather than clinical duties.

The Physician Shortage

A continuing physician shortage is straining the healthcare system, with 88 percent of respondents indicating that their practice has been affected. This shortage is particularly severe in primary care specialties such as family medicine, emergency medicine, psychiatry, obstetrics, and gynecology.

Job Satisfaction and Career Decisions

Only 40 percent of physicians are satisfied with their current compensation. Interestingly, 75 percent are willing to accept lower pay for more autonomy or better work-life balance, indicating a shift in priorities towards managing workloads and personal well-being.

Why Now is the Perfect Time to Incorporate

The data from the Doximity report underscores the substantial number of physicians contemplating a change in their employment situation. For these doctors, incorporating themselves as a professional micro-business could be a game-changer. Here’s why:

Employment Lite Contracts

For those of you looking to transition smoothly, "employment lite" contracts provide the flexibility of working as an independent contractor while maintaining some of the benefits associated with traditional employment. This hybrid model allows physicians to have greater control over your schedules and workloads, mitigating burnout and enhancing job satisfaction. Here is my pro-tip, as you start to look for a new job, start a professional micro-corporation first, and then make sure to communicate to prospective new jobs that you want a PSA contract rather than a W-2 contract.

Job Stacking

Combining part-time W-2 jobs with 1099 contractor roles through a professional micro-corporation allows you to diversify your income streams and achieve a better work-life balance. This job stacking approach provides the autonomy to choose the most fulfilling and financially rewarding opportunities, reducing the risk of burnout and increasing your overall career satisfaction.

Why SimpliMD?

At SimpliMD, my mission is to empower you to thrive as a healer and entrepreneur. I offer a range of resources, including business consultations and courses, designed to help you navigate the complexities of forming and managing a professional micro-corporation. By joining our community, you will gain access to:

• Expert Business Coaching: Tailored advice, goal-setting, and business mentoring to help you structure your micro-corporation for maximum efficiency and profitability.

• Comprehensive Courses: Step-by-step guides on incorporating, managing contracts, and optimizing your practice.

• Community Support: Connect with like-minded physicians who are successfully navigating the marketplace as independent contractors through our membership program.

Call to Action

The 2024 Doximity Physician Compensation Report makes it clear that many doctors are ready for a change. If you are one of the 59 percent considering a new employment situation, now is the perfect time to explore the benefits of forming a professional micro-corporation. Take control of your career, reduce burnout, and achieve a better work-life balance by incorporating yourself and entering the marketplace as an independent contractor.

Reach out to SimpliMD for a business consultation to discuss your unique situation, or sign up for one of our courses today. Empower yourself to thrive in both your professional and personal life by taking this critical step towards autonomy and fulfillment.