Alternative Med School Payment Method..Help or Hinder Acceptance?

[Tgfu34]

The hospital that I am employed at has offered me a student stipend, where they would give me upfront payment for my medical schooling in exchange for returning to the hospital to practice for a certain amount of years after my residency. Will listing this on my medical application help/hinder me in any way when applying? Personally, I think it would be beneficial because the school would receive their tuition immediately rather than having to wait for me to pay off loans and go through that entire process. I was wondering if there is anyone out there that has taken this path, whether it has helped/hindered them in the application process, or if anyone has any other input, it is greatly appreciated! Thank you!

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[xffan624]

The hospital that I am employed at has offered me a student stipend, where they would give me upfront payment for my medical schooling in exchange for returning to the hospital to practice for a certain amount of years after my residency. Will listing this on my medical application help/hinder me in any way when applying? Personally, I think it would be beneficial because the school would receive their tuition immediately rather than having to wait for me to pay off loans and go through that entire process. I was wondering if there is anyone out there that has taken this path, whether it has helped/hindered them in the application process, or if anyone has any other input, it is greatly appreciated! Thank you!

The school does not provide loans, the bank does. They don't care who pays as long as someone does. It will not either help or hurt you for acceptance purposes.

 

[Tgfu34]

The school does not provide loans, the bank does. They don't care who pays as long as someone does. It will not either help or hurt you for acceptance purposes.

Thank you very much!

 

[777137]

Thank you very much!

Do you mind if I ask, but how do you procure something like this? What happens if you don't make it (purely speculation), what would they do? I just can't comprehend that a hospital would do something like this.

 

[Azete]

Do you mind if I ask, but how do you procure something like this? What happens if you don't make it (purely speculation), what would they do? I just can't comprehend that a hospital would do something like this.

It's actually pretty common. There are companies (usually hospitals), that will pay most -- sometimes all -- of your tuition in exchange for some type of employment contract.

I've only ever seen this with community hospital networks and sometimes pharmaceutical companies, but I'm sure other instances exist.

 

[Mansamusa]

It's actually pretty common. There are companies (usually hospitals), that will pay most -- sometimes all -- of your tuition in exchange for some type of employment contract.

I've only ever seen this with community hospital networks and sometimes pharmaceutical companies, but I'm sure other instances exist.

Are these in less desirable locations? How would they even know the will have an opening for whatever random specialty?

 

[darkjedi]

I'm skeptical that this is a deal that is actually in your favor unless you are 100% certain that you are going to wind up at that hospital after residency anyway. A lot can change in the 7-11+ years of training, and having a contract burdening you as soon as you graduate from residency, with little to no room for negotiation seems unwise.

The medical school gets their money immediately regardless of whether or not you have a stipend/funds/loans. Mentioning it on applications may actually be a drawback depending on the mission of the school, as some schools (particularly public) hope that you will stay in the area to practice.

 

[Azete]

Are these in less desirable locations? How would they even know the will have an opening for whatever random specialty?

These are typically large hospital networks with multiple locations (they have many of every specialty). They fork over a couple hundred thousand up front in exchange for the necessary flexibility to fill all their positions in every area (they can send you anywhere they want). Often times they'll use language like "GUARANTEED $200k salary regardless of specialty" -- which sounds great but even if you're doing FM they can send you to rural Arkansas where this would be significantly below market price (especially when you factor in inflation)

I have rarely (never) seen these offers based on merit and/or potential. It's purely a business decision where they win even if you're the best student or the worst student. Sure, the risk exists that you might not graduate, but 95% of all accepted medical students become paid physicians; it's a good bet.

 

[Tgfu34]

Do you mind if I ask, but how do you procure something like this? What happens if you don't make it (purely speculation), what would they do? I just can't comprehend that a hospital would do something like this.

Once I would start practicing, I would have to pay taxes on the stipend that was given. So, it is not entirely a consequence-less stipend, as I would still have to pay some money for accepting it. However, if I were to receive a better offer from another health system, or, on the other end of the spectrum, not pass medical school, I would have to pay back the health system in a way similar to a loan. And the health system that offered it actually isn't too large, with all locations within a 25 mile radius. Nothing is set in stone yet, but what would be your reaction/decision if your local health system offered this to you?

 

[Mansamusa]

Once I would start practicing, I would have to pay taxes on the stipend that was given. So, it is not entirely a consequence-less stipend, as I would still have to pay some money for accepting it. However, if I were to receive a better offer from another health system, or, on the other end of the spectrum, not pass medical school, I would have to pay back the health system in a way similar to a loan. And the health system that offered it actually isn't too large, with all locations within a 25 mile radius. Nothing is set in stone yet, but what would be your reaction/decision if your local health system offered this to you?

How long is the commitment? What are the repayment plans if you were to renege on the agreement?

 

[Tgfu34]

How long is the commitment? What are the repayment plans if you were to renege on the agreement?

5 year commitment, and the repayment plan would be prime plus 1 for however much I borrowed.

 

[Mansamusa]

5 year commitment, and the repayment plan would be prime plus 1 for however much I borrowed.

That's a relatively short commitment and the repay interest rate would be ~4.5% right now, which is less than stafford loans. Do they have caps on what your max monthly payment could be (eg 15% of your income)? If it wouldn't limit your specialty choice and won't force you to accept a lower salary than your colleagues, I would personally give it some serious thought (they are definitely getting the better end of the deal someway or else they wouldn't have this program. I would make sure you understand how they are benefitting and make sure you are okay with whatever the benefit is. It may be something as simple as the hospital being in a less popular location or it could be a major financial benefit that comes at your expense. Ask a physician at the hospital their opinion too). You should also make sure you are protected if the hospital system merges/is sold to another system or if the hospital closes down