The Business Argument for Working with Doctor Clients

Are you a financial advisors interested in accelerating the growth of your practice? In this episode, discover the compelling business arguments for working with doctor clients. You will learn the many opportunities in the medical market, and learn why doctors represent ideal clients for financial advisors.

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Transcript

The Business Argument for Financial Advisors Working with Doctor Clients

If you could work with a client who earns a high income, has complex financial needs, and values expert guidance, would you take that opportunity? Today, we're discussing why high-performing financial advisors focus on doctors and how it could transform your practice.

Welcome to the Engaging Doctors podcast! If you're a financial advisor who wants to accelerate your business growth by attracting, engaging, and serving more doctor clients, you are in the right place. I'm Dr. Vicky Rackner, your host. I'm a retired surgeon who has spent the past 15 years helping financial advisors crack the physician code and reach the doctors who want and need their help.

In this episode, you'll discover:

• The financial power of the medical market
• Why doctors need financial advisors
• How serving doctors can create long-term business stability for you

So, let's get started!

The Financial Power of the Medical Market

Why might you be interested in working with doctors? The answer is simple—Sutton's Law. When Willie Sutton was asked, "Why do you rob banks?" he replied, "That's where the money is." You've heard the saying, "The riches are in the niches," and the medical market is one of the richest niches.

Consider these key financial aspects of the medical market:

1. Size of the Market
   • U.S. healthcare spending exceeds $4.5 trillion, making it one of the largest sectors in our economy.
   • Over 1.1 million physicians practice in the U.S.
   • Hundreds of thousands of dentists, medical executives, and ancillary healthcare professionals add to this number.
2. High-Income Potential of Doctors
   • According to the U.S. Department of Labor Statistics, 10 out of the top 10 earners in the U.S. call themselves "doctor."
   • The average physician earns between $250,000 and $500,000 per year, with many specialists earning well over a million dollars annually.
   • Even early-career physicians earn more than many professionals in other industries.
   • Today, about half of practicing physicians have entered what I call "financial menopause"—they are 55 years or older, transitioning from their productive earning years to retirement.
3. Wealth Accumulation Potential
   • With proper financial guidance, physicians and dentists can amass significant wealth.
   • However, many fail to do so due to a lack of financial leadership.
4. Recession-Proof Industry
   • Healthcare is one of the few industries that remains stable even in economic downturns.
5. Healthcare Will Never Be Outsourced
   • The industry is here for the long run.

Why Doctors Need Financial Advisors

Physicians and dentists experience financial pain and need help. Before the pandemic, only about half of doctors worked with professional financial advisors. Among the doctors who chose a DIY approach, the number one reason was: "I haven't found somebody I can trust."

In 2019, about half of doctors were behind in retirement planning. Those who worked with professional financial advisors were more likely to be on track. Many doctors were counting on their high-earning years to catch up—until the pandemic struck.

The Financial Impact of the Pandemic

The pandemic disrupted physicians' financial stability. Elective cases, which drive hospital and practice profitability, were postponed, impacting doctors' incomes. Many doctors, who had never considered financial hardship, suddenly found themselves struggling.

Even as the pandemic subsided, doctors continued to face financial stress:

• Medicare compensation for doctors has declined year after year.
• The cost of delivering medical care continues to rise.
• Private equity is purchasing medical practices, often prioritizing short-term profits over long-term outcomes.
• Doctor burnout has reached new heights—pre-pandemic, 40% of doctors reported being burned out; during the pandemic, this number soared to 70%.
• Many doctors now ask, "How do I move up my retirement?"

How Working with Doctors Can Transform Your Financial Practice

You might think that doctors are difficult to reach, but the truth is, their natural behavior makes it easier to build a doctor-friendly practice.

Doctors Share Resources

Doctors naturally share valuable resources with each other. If they find a financial advisor they trust, they will spread the word. For example, I found my first financial advisor through a colleague’s recommendation. Doctors trust their peers, and once you build credibility with one, you can unlock an entire network.

Doctors Are Loyal Clients

If you do a good job, you'll have a physician client for life. Unlike ultra-high-net-worth clients, where retention can be a challenge, doctors tend to stay with advisors who understand their unique needs.

Doctors Value Expertise and Pay for Quality Services

Doctors regularly hire specialists—attorneys, consultants, and financial advisors. They are willing to pay for value-added services like tax planning, asset management, and advanced wealth management strategies.

The Challenge: Breaking into the Medical Market

Despite the opportunity, many financial advisors struggle to break into the medical market. Why? Because the world of medicine operates under different rules than the world of business.

The biggest mistake advisors make is assuming that doctors will respond to the same marketing messages that work for business owners. This is not the case. Marketing to doctors follows neither the B2B nor B2C model—it’s its own category, what I call B2D (Business to Doctors).

Success comes from understanding:

• How doctors think
• How they network
• How they make financial decisions

Final Thoughts

The doctor market presents a massive opportunity for financial advisors. Doctors need specialized financial guidance, but most don’t receive it. Advisors who build trust and understand doctors' unique financial needs can create long-term, high-value relationships.

So, let me leave you with a question: If you could build a practice working with high-earning, intelligent, and referral-friendly clients, why wouldn’t you go all out on serving doctors?

Next Steps:

• Subscribe to this podcast for more insider strategies on working with doctors.
• Join the mailing list at Engaging Doctors for updates on successfully acquiring doctor clients.
• Tune in to the next episode, where I will lay out the four pillars for success in the medical market.
• Check out my training on how and why to work with doctors in 2025. (Link in the show notes!)

Thank you for your time and attention. This is the right place and the right time to mine the treasures in the medical market. Stay tuned, and I’ll show you how!