How Employed Physicians Finance Retirement

Financing retirement plans can be a win-win solution for healthcare organizations and physicians. Here are some reasons why.

I’d like to thank all of you who have been sending me emails with your questions. A number of them are from employed physicians working for a hospital or a group practice. They want to know how to finance their retirement plan, so I thought I would talk about it here.

The easiest way to finance your retirement plan is to get your employer and/or physician group involved. Getting your employer and/or physician group involved is actually a lot easier than you think, because once they look at it, it becomes something they want, too. You will find as soon as you bring up the subject, you immediately have their interest, because they probably have never heard of financing a retirement plan before. Another reason you’ll have their interest is, whomever you talk to most likely is concerned about their own retirement, too. So feel free to start the conversation, because retirement is on everyone’s mind.

Here are a few reasons why so many healthcare organizations will want to finance their retirement plans.

• There is no cost to the healthcare organization or to the physicians because 100% of the plan can be financed. For that reason alone every organization that can do it, should.

• There is a huge shortage of physicians and healthcare organizations that need all the help that they can get when it comes to recruitment and retention. Financing retirement gives the healthcare organization a powerful recruiting and retention tool. For rural healthcare organizations the problem of recruitment and retention is absolutely enormous. When openings for physicians go unfilled, it’s costly to the organization. It puts stress on those who are trying to fill in the gap, and ultimately, it is the patients who suffer with longer wait times. By solving the recruiting and retention problem, you are helping deliver quality healthcare.

• There are no administrative headaches, liabilities, or costs like those associated with other plans like 403(b)s, 401(k)s and so on. If the healthcare organization wants, it can keep whatever current plans they have in place. The organization can simply add financing retirement plans for the physicians and/or key executives they wish to offer it to.

• Healthcare executives have some of the same retirement concerns that physicians do. The healthcare executives can be included in the plan so they will enjoy the benefits too.

As you can see, financing retirement plans instantly creates the perfect win-win situation for physicians and healthcare organizations, because it solves the problems that each group has.

It’s really very, very simple… Physicians need a good retirement plan and healthcare organizations need to recruit and retain good physicians.

A good place for employed physicians to start is to talk with your chief medical officer. Additional information can be found on the homepage of my website

If you have questions send me an email to I love hearing from you and I personally answer every email I receive.

And make sure you come back here next week to Physicians Money Digest for another edition of The Alemian File.