Do digital health startups need more doctor CEOs?

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…

• Physicians in the tech industry are often dismissed as lacking the skills and risk tolerance for entrepreneurship, but digital health is proving them wrong.

• The American Medical Association is considering a resolution to ban corporate medicine, which is causing concern among physicians and patients alike.

• Transitioning from medicine to entrepreneurship may seem out of reach, but with the right mindset and strategies, it's possible to make the leap.

• Passive income has become a buzzword in the world of personal finance, promising financial freedom and independence.

• What if I told you there is a way to profit from inflation?

• An atmosphere of growth is a key to a happier life.

LOUNGE TALK

In the tech industry, there is a common belief that doctors are not well-suited for entrepreneurship due to their risk aversion and lack of business training. However, the digital health space is challenging this notion with a rising number of successful physicians-turned-founders. Leading health tech companies, including Doximity, Teladoc, and several promising "unicorns," have physicians either as co-founders or at the helm. Physicians bring unique advantages to the table, such as deep understanding of the patient population and clinical workflow. Investors actively seek out physicians for their understanding of customers and ability to navigate the healthcare landscape. However, the lack of training and education in the business side of medicine remains a challenge. Despite this, the interest in entrepreneurship among physicians is growing, with many joining health tech startups and participating in entrepreneurial communities. The narrative that physicians are not skilled in business should be redefined, as the medical field calls for innovative solutions and technology to scale care.

The American Medical Association (AMA) is currently discussing a resolution to seek a federal ban on the corporate practice of medicine. This resolution has garnered support from physicians who believe that private equity firms are negatively impacting the profession. Private equity has spent billions of dollars acquiring medical practices, leading to concerns about physician autonomy and patient care. While some opponents argue that medical practice should be governed at the state level, health law scholars have advised delegates that the federal government can regulate corporate ownership and control of medical practices. The AMA, which has previously aided corporations, is facing an opportunity to prove its relevance by taking a stand against financialization in healthcare.

This article explores the mindset and strategies needed for physicians to transition from medicine to entrepreneurship. Four key strategies are highlighted: identifying what drives you towards entrepreneurship, building a network of like-minded individuals, embracing new skills, and establishing an entrepreneur identity. By recognizing the desire for financial freedom, the aspiration to make a greater impact, the urge to create something new, and the need for career independence, physicians can pave the way for a successful transition. Building a network of supportive individuals, embracing new skills beyond medicine, and cultivating an entrepreneur identity are essential steps towards becoming an entrepreneurial innovator.

Passive income, earned with minimal effort, can come from investments, rental properties, royalties, or online businesses. While it can supplement earnings, it's important to understand the tax implications. Passive income is money earned from activities you're not materially involved in and is subject to taxation at your ordinary income tax rate. However, certain types of passive income, like dividends, may be taxed at a lower rate. Common examples of passive income include rental income, dividend income, interest income, and capital gains. Strategies to optimize tax planning include tracking all expenses, utilizing tax-advantaged accounts, considering timing of asset sales, and structuring a business in a tax-advantageous manner.

Inflation has had a significant impact on our wallets in recent years, but there is a way to profit from it. Even though inflation is currently lower than its peak in June 2022, its price-gouging effects will continue to affect us in the long term. To hedge against inflation and accelerate your wealth, real estate investment can offer a protective refuge. When you invest in real estate, you not only diversify your sources of passive income but also ensure the safety of your long-term financial goals during both stable and volatile inflation periods. Real estate investment can act as a safe haven against inflation, but it's important to understand what inflation is in the first place.

Drawing on contemporary science, the wisdom of the ages, lessons from pop culture, and her own experiences, Gretchen Rubin reveals unexpected truths about how we can live happier lives—and how to transform abstract ideas into concrete action. Knowing the answer to one simple question—How do we respond to inner and outer expectations?—can help us achieve our aims. Gretchen Rubin is one of today’s most influential and thought-provoking observers of happiness and human nature. An acclaimed writer, she’s known for her ability to distill and convey complex ideas with humor and clarity.

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