Why Do So Many Medical MDs Want ER?
I get easier work.
Is pay even better?
I would guess hours (including travel and weekends) worse. Job security also worse.
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Well, the transition from being a Medical Doctor (MD) to Equity Research (ER) in healthcare can be driven by various factors. Some MDs might be attracted to ER due to their interest in finance and the business side of healthcare. They might enjoy managing their own portfolios and want to use their medical knowledge in a different way.
As for the pay, it can vary widely and would depend on factors like the specific role, the company, and the individual's level of experience.
The hours in ER can indeed be long and sometimes unpredictable, especially during earnings season. However, some might find this preferable to the shift work often required in medicine.
Job security can also vary. While medicine is often seen as a stable field, ER can be influenced by many external factors like market conditions. However, it's worth noting that having a unique background as an MD can potentially provide some job security in healthcare ER, as this expertise can be highly valuable.
Remember, everyone's career path is unique and what works for one person might not work for another. It's all about finding the right fit for your skills, interests, and lifestyle.
Upside is higher I presume, and biotech / healthcare is one of the few higher comp sector in ER because of deal flow in a normalized environment.
MD in Biotech ER. Medicine doesn’t really pay that great outside of a few specialties.
I was in ortho residency when I left to do this. I would’ve had 7 years of post medical school training (residency and fellowship) to become a ortho spine surgeon. That’s 7 years of making 60k. My first year in ER I made 200k all in. Additionally if I stay on the SS and become and analyst I’ll clear high 6 figures/ low 7 figures. If I’m really good I can make a mid 7 figures a year.
That’s just on the SS. If I go to the Buyside my earning potential is virtually unlimited. Sure there’s less stability in my career, but I’m young (26). This is a risk I’m willing to take. If I stayed and became a spine surgeon I would’ve made 700-800k but working 80-90 hours a week.
Additionally the work I find interesting. Love keeping up with the latest scientific advancements. It really is cutting edge stuff. Yes, surgery is also very interesting, but you’re doing the same procedures and can get very old. Additionally, I wanted to go into academic medicine for the research component and mentoring I would be able to give to younger surgeons. This allows me to do that in the future with mentoring young associates and well it is called equity research (different kind of research you get the point).
How much would you make as a spine surgeon working 40-50 hours a week?
On average, around 600k:
https://weatherbyhealthcare.com/blog/orthopedic-surgery-salary-report
…which is average-to-below for an ER MD, and I think it’s safe to say that spine surgeon is the “ER MD of medicine.”
The average physician doesn’t make half as much as that.
Lol spine surgeons don’t work 40-50 hours a week. If you wanna do that go into Peds or Derm or something else.
.
A) you don’t work 50 hours a week in surgery.
B) i got into an elite university (7% acceptance rate). I scored 99th percentile on the MCAT. I made it into a top medical school. I scored 99th percentile on USMLE step 1 and step 2. I got into the hardest residency specialty and matched into at a top program. Not trying to sound cocky, but I’m not what you call an average person.
C) finance is significantly easier than medicine.
D) in financial terms I’m competing against a less talented comp pool.
Also in biotech ER if you have your own coverage even just a few names your clear ing 500k-600k. Once you’ve ramped to 20 names it hits 7 figures pretty fast.
Not trying to sound cocky but I’ve proven myself in the hardest degree to obtain. I think I fair a decent shot here.
Plenty of guys in biotech pull mid 7 figures.
No one in medicine is working 50h/week clearing 600k, derm and plastics maybe the exception. Plus, you are underestimating the stress of having someones life in your hands (except derm and radiology).
This is exactly why I asked the question.
I have no doubt those who switch from medicine to ER are smart, and ER is way easier than medicine.
But the part that they seem to miss is that 1) very few succeed in ER making the amounts they hope for, and 2) those who succeed aren’t necessarily the most talented or smartest.
To succeed, you have to get lucky, avoid losing your job through no fault of your own, be well liked, and hope that they people who like you also avoid losing their jobs. There’s so much uncertainty in ER, that to give up a sure $600-900k, must mean that anything shy of $1m+ is flat out failure. But very few people who start in ER get to $1m.
Pay is probably better, overall. The median physician makes maybe ~200k-300k USD. You’re probably clearing that level much earlier on in your career in ER than in medicine, and your upside is also much higher as well…especially when you factor in buyside exits.
Yep exactly this. Except a physician is around 300-400k
No need to do residency and can hop to HF/PE later on
From my perspective who left med for IB. If you're a naturally competitive person who constantly strives for the top, then finance provides a playing field to do that whereas medicine doesn't. Medicine is a good career if you want to work decently hard, make mid 6 figs and have a nice life, but there is little upside beyond that.
You can talk about low chances of making more than that in finance etc but for me just the fact I have that to work towards makes my career so much more fulfilling than capping out post med residency.
Cordially disagree with working decently hard and a competitive playing field if you are in a surgical specialty. It’s up to you to keep progressing your skills and knowledge throughout the career. Compensation does not match the efforts.
That's not how comp works in med though. It's not like on buyside where it's quite literally the better your returns then the more you get paid. In medicine it's hard to quantity what makes you "good" or not and since having different standards of healthcare is unethical, doctors are mostly paid the same in each speciality based on the amount they work. Actually if u want to earn more money it's best to move rural because of supply and demand.
There's really not much else to work towards once you've matched into residency.
Couldn’t have said it better myself man.
The competition in medical school really ends when you hit residency/fellowship. I got into the best ortho program in the states and a top med school. After that it’s collaboration. Nothing wrong with collaboration (kinda needed for medicine) but you don’t have that eat or be eaten mentality anymore.
I've noticed this as well just from being a patient....after medical school, it almost becomes a level playing field. My doctor who graduated from the local state school or uknown DO program or 3rd world country is working right next to the guy from Harvard and Cornell. And they are all probably getting paid about the same. That's gotta be some humble pie for the latter.
Think it's stupid to change careers because of that but I can see where this could be a dissapointment for some people after years of overachievement.
from my own perspective I'm UK so med is an undergrad degree so it wasn't too much of an issue to move across
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