From licensing fees to clinic overhead, here’s what early-career physicians should expect
Many medical learners don’t realize that once they begin practice, they also become small business owners.
“Some may have done prep work beforehand, but I think when reality hits is when they actually start rotations,” says Preya Singh-Cushnie, associate executive director at OMA Insurance.
To help early-career physicians better prepare, we asked Singh-Cushnie about the hidden costs of becoming a physician in Ontario.
Some costs are already familiar from medical school but still impact the early days of residency. These include tuition and living expenses, payments on lines of credit and moving expenses tied to residency placements.
There are also interview and application fees for residency, along with other study-related expenses such as examination fees and credential renewals.
What many aren’t prepared for, however, is the cost of setting up practice once residency is over.
Some costs that catch early-career doctors off guard include licensing fees, disability coverage, taxation considerations, medical incorporation and more.
For example, the annual membership fee for the College of Physicians and Surgeons of Ontario is $1,725.
“Are students and residents aware that’s a cost they’re going to have to pay upfront? Not necessarily,” says Singh-Cushnie, noting there may also be ongoing costs for additional examinations or continuing education credentials.
Another potentially unanticipated cost is mandatory membership in the Canadian Medical Protective Association, which provides an added layer of liability protection.
“And then if you do start practice or you are a resident working within a clinic, what does overhead insurance look like for you?” says Singh-Cushnie. “Are you getting it from the clinic owner, for example?”
There are also costs associated with EMRs, accounting and cybersecurity systems, health-care staff and practice administration support.
“The reality of all these things doesn’t pop up until you’re living in it – even with planning and preparation,” she says.
To medical students and early-career physicians whose minds may be spinning, Singh-Cushnie says this: “Take a minute to breathe, it’s common to not be prepared to be a small business owner. Medical school doesn’t often prepare you for this part of your career.”
She recommends they reach out to OMA Insurance for unbiased insurance and estate planning advice.
“Come to our sessions. There is lots of ‘financial advice’ noise out there. Give us a few minutes of your time to help give you clarity,” says Singh-Cushnie. “Let us explain our essentials program, how it works for you – not just as a student in first year, but all throughout your residency, into early practice and beyond.”
OMA Insurance has been providing trusted insurance protection for physicians and their families for 70 years. Our licensed advisors are regulated and can help early-career physicians better understand and plan for their financial goals, says Singh-Cushnie, adding that advisors are salaried employees.
“We start with what matters most to the member: understanding their goals, financial plans and legacy needs because every situation is different,” she says.
The OMA’s practice management web pages contain a wealth of knowledge and information to help physicians navigate finances, staffing, clinic operations and more.