What are doctor's/neurologist's "expenses"?

[adpi]

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When people say anything like "that's their salary before expenses", what expenses are they referring to? For a hospital-based neurologist, all I can think of are medical school loans, malpractice insurance (which I'm guessing is not much for a neurologist - anyone have this data, specifically for Chicago?), and the usual expenses like taxes and mortgage. Anything else?

If that's it, why does it take so long to pay off student loans? Some have told me that they didn't pay off their loans until their first-born was in college or it took them 20 years. But even when you factor in interest, I don't see how this can be unless they're repaying the absolute minimum amount.

 

[HarveyCushing]

When people say anything like "that's their salary before expenses", what expenses are they referring to? For a hospital-based neurologist, all I can think of are medical school loans, malpractice insurance (which I'm guessing is not much for a neurologist - anyone have this data, specifically for Chicago?), and the usual expenses like taxes and mortgage. Anything else?

If that's it, why does it take so long to pay off student loans? Some have told me that they didn't pay off their loans until their first-born was in college or it took them 20 years. But even when you factor in interest, I don't see how this can be unless they're repaying the absolute minimum amount.

I think you need to distinguish between personal expenses and work expenses. As a physician, depending on type of practice you enter into (academic, private, hospital employed, VA...etc.), you will have various expenses at work that you will need to pay. Ranging from:

- the cost of buying new medical equipment
- paying office staff (nurses, receptionist...etc.)
- rent/mortgage for medical office (property tax?)
- medical supplies
- office supplies
- office furniture
- malpractice coverage as you mentioned
- maybe even limited advertising (like in the yellow pages)
- ...etc.

So these would be considered "overhead costs" that you would have to pay for each month before your own take home pay. Then on a personal note you would have to pay your income taxes, student loans, mortgage, car payment...etc. I think you need to clarify if you are asking about personal "expenses" or work "expenses." I assume you mean the later? The above list is not a comprehensive list as I assume there are many more expenses that I could not think of. Those were just the ones that came off the top of my head.

 

[adpi]

I think you need to distinguish between personal expenses and work expenses. As a physician, depending on type of practice you enter into (academic, private, hospital employed, VA...etc.), you will have various expenses at work that you will need to pay. Ranging from:

- the cost of buying new medical equipment
- paying office staff (nurses, receptionist...etc.)
- rent/mortgage for medical office (property tax?)
- medical supplies
- office supplies
- office furniture
- malpractice coverage as you mentioned
- maybe even limited advertising (like in the yellow pages)
- ...etc.

So these would be considered "overhead costs" that you would have to pay for each month before your own take home pay. Then on a personal note you would have to pay your income taxes, student loans, mortgage, car payment...etc. I think you need to clarify if you are asking about personal "expenses" or work "expenses." I assume you mean the later? The above list is not a comprehensive list as I assume there are many more expenses that I could not think of. Those were just the ones that came off the top of my head.

You're right - I was referring more to work expenses.

 

[neurolddoc]

When people say anything like "that's their salary before expenses", what expenses are they referring to? For a hospital-based neurologist, all I can think of are medical school loans, malpractice insurance (which I'm guessing is not much for a neurologist - anyone have this data, specifically for Chicago?), and the usual expenses like taxes and mortgage. Anything else?

If that's it, why does it take so long to pay off student loans? Some have told me that they didn't pay off their loans until their first-born was in college or it took them 20 years. But even when you factor in interest, I don't see how this can be unless they're repaying the absolute minimum amount.

I think it depends on what kind of practice arrangement you have with the hospital. Are you strictly an employee? If so then your employment contract should specify who pays for what. Are you an independent contractor who provides services in the hospital but bills for your own services? Again, what if any of the items in the above post are paid for by you and which are picked up by the hospital would be negotiable.

I know nothing about the particulars of the Chicago market.