Salary vs. Location

[echod]

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Do desirable locations like New York City, Seattle, San Francisco, Boston, etc, pay more or less than average? Thanks a lot!

 

[7ontheline]

Do desirable locations like New York City, Seattle, San Francisco, Boston, etc, pay more or less than average? Thanks a lot!

Clearly not a PhD candidate in economics. . .

Simple supply and demand dictates that those locations pay less, sometimes far, far less.

 

[echod]

sometimes far, far less.

Thanks for answering. I'm wondering what kind of decrease in terms of % are we looking at?

 

[happy optho]

up to 50% less

 

[orbitsurgMD]

Thanks for answering. I'm wondering what kind of decrease in terms of % are we looking at?

I have seen in the recent past practices trying to hire in the Washington, D.C. region at offers under $100K per year.T hat is a poor offer for such an expensive area, but apparently some people are willing to go for those offers.

(I think any practice that low-balls like that, no matter where they are, has really shown their hand--they don't really care about getting the right candidate as much as getting the right price, which doesn't bode well for the person hired.)

 

[echod]

up to 50% less

This is an interesting situation. I would imagine that there should be some entrepreneurial eye docs out there that could borrow some money from the bank and set up their own practice. Or maybe get some colleagues together to set up a group practice. I am not an expert in this area, and I'm just postulating. If someone does indeed do what I mentioned above, I could image that person making a competitive salary at a desirable city.

 

[orbitsurgMD]

This is an interesting situation. I would imagine that there should be some entrepreneurial eye docs out there that could borrow some money from the bank and set up their own practice. Or maybe get some colleagues together to set up a group practice. I am not an expert in this area, and I'm just postulating. If someone does indeed do what I mentioned above, I could image that person making a competitive salary at a desirable city.

First things first.

Consider the business plan, something more than "I will borrow some money from the bank and be an entrepreneurial eye doctor." Borrowing money is just not that easy; banks want to know you have a high probability of paying them back on time. Being ambitious gets you no points. Having assets to post as collateral does get you points. Being "entrepreneurial" gets you no points; showing that your presence in a specific community adds something of sufficient net benefit that it can sustain your practice and make you a good risk does get you points. It helps to be able to show why you will likely be successful. Delve into the demographics of the community. Show the existing resources, project both the need and expected depletion (retirements) of the resources and show why you are going to be successful.

 

[KHE]

First things first.

Consider the business plan, something more than "I will borrow some money from the bank and be an entrepreneurial eye doctor." Borrowing money is just not that easy; banks want to know you have a high probability of paying them back on time. Being ambitious gets you no points. Having assets to post as collateral does get you points. Being "entrepreneurial" gets you no points; showing that your presence in a specific community adds something of sufficient net benefit that it can sustain your practice and make you a good risk does get you points. It helps to be able to show why you will likely be successful. Delve into the demographics of the community. Show the existing resources, project both the need and expected depletion (retirements) of the resources and show why you are going to be successful.

Here's the problem with banks...

In this day and age of heavy collateralization of loans, banks want you to put up a huge downpayment, and/or go through the SBA to have the government back the loan which usually requires mountains of paperwork. It can be done, and if you got the fortitude, do it because you can usually get a very good rate.

However, I recommend people starting out go with one of the various specialty lenders out there who specifically lend to doctors. Often times, they'll allow for 100% financing and will even finance some working capital. Many times, all they want as collateral is your equipment which the bank definately does NOT want as collateral. Usually with these outfits, you pay a point or two higher than you would with the SBA but with interest rates as low as they are, the ease and willingness of these companies to work with new doctors is almost universally a much better alternative than a traditional bank.

*NOTE* I am not on the payroll for any of these companies.