Financial Orientation Matters

Dr Neelesh Kumar Mathankar

Consultant Anaesthesiologist

Viveka Hospital, Nagpur.

In the evolving landscape of healthcare in India, anesthesiologists play a pivotal role in patient care. However, beyond clinical expertise, one crucial aspect that deserves attention is financial literacy and orientation. As the medical profession becomes increasingly complex and competitive, understanding financial management is essential for us to secure our future, optimize income and ensure sustainable practice.

Traditionally, medical training in India emphasizes on clinical skills, often leaving financial planning and management as afterthoughts. Yet, with increased specialization duration and costs, and the need for investment in equipment and facilities in some super specialties like pain management, anesthesiologists are now more than ever required to be financially savvy.

Financial literacy encompasses understanding income streams, taxation, investments, insurance, retirement planning, and risk management. For anesthesiologists, who may operate as freelancers, consultants, or hospital employees, tailored financial orientation can help navigate these varied income models effectively.

Why Financial Orientation Matters

a) Maximizing Earnings and Managing Expenses:

We often work across multiple hospitals or clinics. A clear understanding of cash flow, billing, and expense management helps optimize income and reduce financial leaks.

b) Insurance and Risk Management:

Adequate health, life, and professional indemnity insurance protect against unforeseen circumstances eroding our savings. Understanding these products ensures comprehensive coverage tailored to individual needs.

c) Investment and Wealth Creation:

Building wealth through prudent investments is vital for long-term financial security. Knowledge about mutual funds, equities, real estate, and retirement plans helps anesthesiologists grow their savings and plan for future needs.

d) Retirement Planning:

Given the often demanding work schedules and the uncertainties of anesthesiology practice, early retirement planning is crucial. Financial orientation helps in setting realistic goals and choosing appropriate retirement schemes.

e) Tax Planning and Compliance:

India’s tax laws are complex, with various deductions, exemptions, and compliance requirements. Financial orientation ensures that anesthesiologists can plan their taxes efficiently, avoid penalties, and possibly benefit from tax-saving instruments

Unique Challenges Faced by Indian Anesthesiologists

a) Lack of Formal Financial Education:

Most medical curricula do not include financial training, leading to a knowledge gap. Often leading to poor financial decision making during the early periods of practice, which unfortunately have the long term ill effects on our finances.

b) Variable Income Streams:

We work on different income models eg freelance private practice, part time/ full time private/govt hospital employment. To make things worse, we do not control our professional charges. Variable employment models and inability to fix our own professional charges, mean income variability, requiring flexible financial planning.

Building Financial Literacy: Steps Forward

a) Incorporate Financial Education in Residency:

Medical institutions should include modules on personal finance, taxation, and investment planning in the anesthesiology curriculum. This would avoid the early mistakes in financial planning and help residents to take better professional decisions.

b) Professional Workshops and Seminars:

Indian Society of Anesthesiologists (ISA) regularly organize targeted financial literacy programs. Other organizations like wealthcon etc also frequently organize seminars and courses.  We must attend these seminars to get the basic financial orientation as soon as possible.

c) Utilize Digital Resources:

Online courses, webinars, and apps can bridge knowledge gaps. They are simple, feasible and flexible to match our irregular schedule.

d) Seek Expert Advice:

Engaging financial advisors experienced with healthcare professionals can provide personalized strategies.

Conclusion

For us, financial orientation is not just an ancillary skill but a vital component of professional development. By prioritizing financial literacy, we can ensure financial stability, optimize our earnings, and build a secure future. As the medical profession continues to evolve, integrating financial management into their career strategy will empower anesthesiologists to focus on delivering excellent patient care without financial stress.

In essence, understanding and managing finances effectively is an indispensable part of modern-day anesthesiology practice—one that promises long-term benefits both professionally and personally.