Consistent with our name, 'Physician Side Gigs,' you would likely rightfully surmise that we are big proponents of side gigs for physicians. Despite that, we like to be clear that we are not believers that every physician NEEDS a side gig. Physicians can have very fulfilling and financially successful careers simply by following a tried and true pathway of earning money in their clinical roles, budgeting appropriately, and saving and investing.
Why, then, do we think that 10-15% of physicians in the US are in an online community called Physician Side Gigs? Because while physicians may not necessarily need side gigs, there are lots of great reasons to have one. We’ll dig into these below, but suffice it to say that in today’s healthcare environment, we feel that the reasons to have alternative income streams and pursue passion projects as a physician are growing by the day.
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Do doctors need side gigs from a financial perspective?
At first glance, the concept of a doctor needing a side gig is somewhat bizarre and counterintuitive. On average, there’s no question that physicians earn more than most professions (as they should, given the opportunity costs of becoming a physician). Therefore, the whole concept of physicians needing alternative income streams from a financial perspective won’t hold up to scrutiny. Making a full time income as a physician (no matter what your specialty) should be able to cover your basic needs and allow you to save and invest the 20% of your earnings that you need to for a tried and true pathway to financial success in being able to retire at the age of 65.
Does that mean that you’ll live the lifestyle that you want if you want to take twelve weeks of vacation a year with multiple international trips, join a country club, send your kids to private school, and drive a Turbo S? Of course not, unless you’re in a higher paying specialty or run an incredibly successful private practice.
If these things are in your goals and what constitutes financial success for you, then side gigs can be a great way to expedite your pathway to them, but again, these are wants, not needs.
Additionally, if you are fulfilled by your clinical practice and income and enjoy your time outside of work but just want some extra income, looking outside for other sources of income may not make much sense. Increasing your productivity at work, picking up some moonlighting or call as ‘side gigs’, or adding ancillary income streams to your private practice may be great options to achieve the income level you desire.
Why are side gigs are becoming increasingly popular amongst physicians?
The healthcare landscape has changed a lot over the last few decades. Although absolute values for physician salaries continue to rise, when adjusted for inflation, we have not seen significant increases in physician income - and in many specialties, have actually seen decreases. Despite this, most physicians are doing quite well financially when compared to the average American. Anybody that says a physician can’t survive by following a traditional physician pathway is trying to sell you something.
However, given widespread reported burnout amongst physicians, the rise of the FIRE movement among physicians, increasing consolidation and commoditization of clinicians, increasing frustration with insurance companies and administrators about the pressure to do more with less resources and for lower compensation, and the administrative burdens and productivity pressure that distract from the doctor-patient relationship, it’s clear that physicians are frustrated.
As we’ll discuss below, side gigs offer compelling ways to combat some of these pressures, whether by being financially beneficial, empowering physicians and giving them leverage to walk away from a bad situation, or adding some fun in their lives. Fundamentally, this is what we believe is fueling the popularity of side gigs, with some reports stating that up to 40% of physicians now have a side gig.
Benefits of Side Gigs for Physicians
Extra money
To start with the obvious, while being a physician will likely always be the primary source of income for physicians who pursue side gigs, many physicians look to side gigs for extra cash. This may be to pay off student loans a little earlier, afford or justify occasional splurges like a bucket list vacation or a home renovation, save up for a practice buy-in, or to add some cushion to a tight budget. The physician financial trajectory is very unique, with a significantly delayed start to savings while in training and paying back medical school debt, but then a quick turnaround, so many physicians at early stages of their career feel they need extra income to take care of their needs and those of loved ones. Even after that time period has passed, there’s not a lot of physicians on our community who don’t want to expedite their pathway to financial independence, regardless of whether they want to retire early.
Diversification of income streams
We are big proponents of not having all of your eggs in one basket. Even though a physician job has traditionally been perceived as relatively stable, in recent years, this has become a little less reliable for many members of our physician communities. With increasing consolidation, employer cost cutting measures, Medicare reimbursement cuts, and the growth of private equity in medicine, physicians worry about changes in the healthcare landscape. Many are scared after seeing significant hits to cashflow during the COVID-19 pandemic, or of hospital systems presenting physicians with ‘take it or leave it’ type paycuts or ultimatums. Additionally, though we hope all physicians carry disability insurance, we know as physicians that tomorrow is never guaranteed, and having other sources of income protect you if for some reason you aren’t able to practice medicine. Income streams such as real estate can provide significant reliable monthly cash flow, while others offer occasional bonus money.
Give physicians the ability to cut back clinically
As demographics in medicine change, there are an increasing number of physicians looking to cut back from a traditional full time job or have more flexibility in their lives in medicine. Having alternative revenue streams to supplement those from clinical medicine allow physicians this flexibility.
Leverage at the negotiation table
The best position to negotiate from is one where you don’t need the money. We sometimes hear of physicians in our communities who feel stuck at a job or like they always have to say yes to another call shift as they don’t yet have the financial capital to move or decline. Having other income streams allows physicians to leverage their negotiating power to say no, and push for better compensation or terms in their physician contracts.
The power to walk away from a bad situation
This is perhaps one of the most compelling reasons for having a side gig that is increasing significantly amongst physicians. As the healthcare landscape evolves, more and more physicians are being asked to do more with less resources, or having responsibilities or expectations pushed on them that they don’t agree with or feel are unsafe for patient care. Some are being pressured to enter supervisory agreements with non-physician clinicians that they are not comfortable with. As above, having the power to walk away without worrying where the next paycheck is coming from allows physicians to extract themselves from bad situations and/or give them freedom to take a few months off before finding the next gig.
Pursuing passions & interests
Side gigs can be a great source of income, but for some physicians, their passion alone makes a side gig worth it. It can be easy to lose ourselves in the fast pace of medicine, non-stop pressure for more productivity, and workplace politics. Side gigs can provide a haven for our passions, creativity, and allow us to do everything on our own terms (something we rarely get to do working in healthcare). You may even find a way to process your busy life in a fulfilling way through self-expression on a blog, podcast, or authoring a book or find yourself reaching new audiences through speaker engagements or being an influencer that allows you to be an advocate for your patients in ways you never thought possible.
Learning new skills
There’s also an inner nerd in most physicians, and many of us enjoy lifelong learning. Side gigs offer a great opportunity to learn new skills and apply them to a real world situation in a way that’s both fun and pragmatic.
Expanding your network
As you continue to grow in your side gig you will likely find yourself surrounded by like-minded physicians or other people who share your interests. Expanding into other fields can also provide you with access to new professionals you may not have met otherwise such as individuals in the health-tech industry or product development space. You never know who will be a helpful person to have in your corner in the future, or what opportunities they may open for you. Even better, you may make new friends!
The opportunity to make an impact in a new way
While we strongly believe that your work as a physician is one of the most meaningful ways to make an impact in the world, many physicians in our online physician networks also want to make an impact at scale, instead of primarily on the individual level. Many side gigs offer you the opportunity to create products or services that can impact many people at once, or offer a platform for advocacy, etc. We’ve seen many physicians doing consulting work, heading up startups, or being medical advisors to start ups that have built products that improve healthcare or the lives of clinicians. This can all be very gratifying given the scale and downstream effects of innovation.
Career flexibility & transition planning
For those looking to cut back or leave clinical medicine, picking up extra skills such as business skills or even getting an MBA as a physician may make you more marketable for desired career shifts to administrative or nonclinical careers.
Additionally, for many physicians who are thinking about pivots or gradual changes in their careers, side gigs can be a great way to dip your toes into what else is out there or set yourself up for an eventual transition to a main gig. We’ve seen many members build their side gigs up during their peak practicing years, and then switch to them as their main gig as they approach retirement.
Reducing burnout
By now you should know that there are no limitations to the type of side gig a physician can have whether it be something completely different from their role as a physician such as writing a book, or adjacent in healthcare consulting. Having a side gig can reduce burnout simply by allowing you to see the world through a different lens and use different parts of your brain. Side gigs can also help remind you of or find your whole identity, as doctors sometimes lose themselves to their role in healthcare. You may find that you feel less guilty not taking that on-call shift or extra hours at the clinic as you now have a new and fulfilling source of income and work.
Additionally, when you are able to work on your own terms and say no to the things that contribute to your burnout, work is much more enjoyable.
Tax benefits
Many physicians are paid as W2 employees and don’t get many tax benefits, but have high tax burdens. There are a few tax advantaged outlets for W2 income earners, but they’re very limited. Side gigs and 1099 income can be a game changer for these physicians from a tax perspective. They can provide access to additional tax deductions, retirement plans, and more. The Tax benefits of 1099 income are plentiful and can be very powerful even for those with high W2 income.
Having something you can do on your own terms
Many physicians ask, why not just work more as a physician if you want more income? While doing more shifts or picking up a moonlighting gig may be the easiest way to make more money if these options are available to you, many physicians still opt for other side gigs. This may be because they are struggling with burnout and don’t want to be in the clinical setting any more hours in a week, but there can be other reasons. The fact is that in today’s healthcare environment, many physicians feel that they’re losing autonomy and are frustrated with others telling them what to do and how to do it. In their side gig world, they can carve out a path for themselves that is under their control. Many doctors welcome the opportunity to build something on their own terms, or to start themselves down that pathway to the eventual career transition.
Potential downsides or considerations when thinking about starting a side gig as a physician
Well, if we’ve convinced you that there are plenty of good reasons to have a side gig as a physician, we also want to caution you about some of the potential downsides or considerations that you should think about before embarking down this pathway.
Could a side gig contribute to your burnout?
For starters, it’s important to make sure you have the bandwidth to take it on. Being a physician is incredibly demanding work, and you don’t want to take on additional responsibilities you’re not sure you can follow through on or that are going to contribute to your burnout. You also don’t want to take time away from your family or other personal responsibilities if you’re already struggling to find time. Be scrupulous when starting your side gig and ask yourself: is my side gig helping me fill up my cup, or doing the opposite?
If you’re finding your side gig just as grueling and draining as your regular work, it may be time to reconsider if you have time for a side gig or if there is another side gig that could be less stressful and more enjoyable. Remember - side gigs can be an exacerbator for burnout just as much as they can be a cure.
Potential reputation & legal ramifications
It’s important to be mindful of how your side gig could impact your professional reputation if it requires you to be in the public eye. It’s always important to be cautious when putting your name on anything that’s going on social media or could be made public. Consider any potential conflicts of interest your side gig could present and ramify them before moving forward. If your side gig requires any additional malpractice insurance or other legal support, make sure to get a policy in place before starting.
Chasing the money at the expense of current happiness
It can be easy to get caught up in the potential financial success of side gigs, but if you’re doing the side gig for the cash, it’s important to look at your budget and consider whether this is the best way to achieve your goals or if you could just spend less and enjoy more. Similarly, don’t break your back trying to bring in an extra dollar if you don’t actually need the extra dollar and if you don’t enjoy having a side gig.
The biggest predictor of your financial success for most physicians is going to be your career longevity and more years of earning money as a physician. You need to enjoy the journey or you may make penny wise and pound foolish decisions that result in you making $50,000 a year more in the short term but at the sacrifice of burnout and quitting medicine a few years later. If this happens, you’ve potentially lost decades of earning as a physician, so remember to not do anything to jeopardize that.
What kinds of side gigs exist for physicians?
When physicians hear the word ‘side gig’, their mind sometimes jumps straight to locum tenens work or taking on extra shifts at their current job. But when it comes to side gigs for physicians, there are so many more options that are parallel to medicine, or completely separate. If you’re interested in exploring some of the side gigs available to physicians, view our resource Physician Side Gigs and Nonclinical Careers. We also have a list of side gigs for (almost) every specialty, and often match physicians with side gigs through our Physician Side Gigs Databases and Matching Service.
Conclusion
Side gigs are a wonderful way for physicians to grow in their finances, passions, career goals, professional network, and more, as well as to give them increased leverage at the negotiating table and the power to walk away. If you’re not sure where to start when it comes to side gigs, use our side gig matching service, get inspired by seeing what other members are doing, or peruse our side gig blog posts where we delve into side gig topics ranging from as low-commitment as medical surveys to as complicated as developing your own app. Your side gig can provide you with the ability to hit many professional and personal goals; just make sure you find one that helps you cope with burnout without adding to it, and that you’ve taken into consideration any potential conflicts of interest, legal concerns, or effects on your professional reputation.