How to Achieve the Best Passive Income?

The LOUNGE - A Newsletter for Savvy Physicians

We scour the net, selecting the most pertinent articles for the busy doc so you don’t have to! Here’s what kept our focus this week…

• How did a retired baseball player secure one of the best passive income deals ever?

• What if the solution to the nursing shortage was hiding in plain sight?

• Think doctors can’t run businesses? Think again.

• AI must be developed with a focus on improving patient outcomes to avoid past mistakes like the EHR systems.

• Assembling a robust team is key to success, whether climbing K2 or leading sustainability initiatives.

• Many Gen Z workers are drawn to entrepreneurship to escape the meaningless corporate tasks.

LOUNGE TALK

Bobby Bonilla, a former Major League baseball player, continues to earn $1.2 million annually from the New York Mets, despite retiring in 2001. This remarkable arrangement stems from a deferred salary agreement made in 2000, in which the Mets, expecting high returns from Bernie Madoff investments, deferred Bonilla's $5.9 million salary with 8% interest over 25 years. This deal, known as "Bobby Bonilla Day," highlights one of the most lucrative passive income streams in sports history. Other athletes like Ken Griffey Jr. and Manny Ramirez also benefit from deferred salary agreements, but none as notable as Bonilla's. Shohei Ohtani’s recent $700 million deal with the Dodgers features a similar structure, yet lacks the interest benefits Bonilla enjoys. Bonilla's deal showcases the power of compound interest and serves as a model for savvy financial planning in sports.

The health care sector faces a critical nurse staffing crisis, with vacancy rates for registered nurses doubling in Massachusetts hospitals from 2019 to 2022. Despite efforts to address this, hospitals are still relying on costly temporary measures, such as paying higher wages to temporary nurses. Emerson Hospital tackled this issue by reevaluating how RNs are utilized, shifting task-based work to lower-cost licensed practical nurses (LPNs), allowing RNs to focus on higher-level tasks. They also created a partnership with local high schools to develop a pipeline of future health care workers. These initiatives demonstrate that simple, proactive measures can have a significant impact on addressing workforce shortages and ensuring sustainable patient care.

Doctors can be successful business owners by leveraging the principles they uphold in medicine. To create a business that stands out, focus on solving real problems, start with a mission that matters, and align interests to ensure mutual success. Embrace growth opportunities and learn from setbacks while maintaining transparency. Protect your reputation by staying true to your mission and leading with integrity. Engaging with supportive communities can also inspire and guide you on your entrepreneurial journey.

The rapid evolution of AI, especially large language models (LLMs) like ChatGPT, is reshaping various industries, including healthcare. Physicians must engage with these advancements to avoid being left behind. Critical technological improvements—such as increased data availability, powerful GPUs, and the transformative transformer architecture—have enabled AI to become more accessible and effective. The healthcare sector needs to ensure that AI developments prioritize patient outcomes over profits, learning from past mistakes with electronic health records. Physicians should educate themselves, participate in AI development, and collaborate with various stakeholders to ensure ethical and effective AI integration. By proactively shaping AI's role in healthcare, doctors can enhance patient care and reduce their workload.

Rick Ridgeway, an outdoor adventurer and former VP of environmental initiatives at Patagonia, draws parallels between mountaineering and business leadership. With experience navigating both the world's highest peaks and corporate challenges, Ridgeway highlights the importance of good communication, ambitious goal setting, and meticulous planning. He stresses that recruiting a strong team is crucial whether you're tackling environmental sustainability in apparel manufacturing or summiting K2. Ridgeway’s insights emphasize that the strategies used in extreme outdoor adventures can be applied to leadership and sustainable business practices. The episode also covers leadership, sustainable business, and environmental sustainability, curated by HBR On Leadership.

Gen Z's dissatisfaction with traditional work structures is more profound than generational differences, signaling a need for companies to reassess their approach. Joe Procopio, founder of TeachingStartup.com, explains that Gen Z rejects the conventional 9-to-5 and hierarchical work culture. Unlike previous generations, they see the current work environment as filled with meaningless tasks rather than meaningful work. Procopio argues that tech companies are misinterpreting Gen Z's disengagement as mere laziness or resistance to authority, missing the real issues. He notes that Gen Z seeks genuine work satisfaction and is frustrated by the perceived redundancy brought on by AI. Companies must understand and address these deeper concerns to better engage with the Gen Z workforce.

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QUICK BITES

• 7 ways for high income families to pay for colleges.

• 3 ways entrepreneurs can avoid growing pains and prepare for sustainable growth.

• 3 exercises to boost your emotional intelligence, according to research.

• New technologies can combat workplace violence against nurses.

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