Finance for doctors, finance, financial independence, doctors and finance,

1. Finance for Doctors
Mr Vaikunthan Rajaratnam
MBBS(Mal),AM(Mal),FRCS(Ed),FRCS(Glasg),FICS(USA),MBA(USA),
Dip Hand Surgery(Eur),
PG CertMedEd(Dundee),FHEA(UK),AFFST(Ed),FAcadMEd.
Senior Consultant Hand Surgeon

2. Good Medical Practice:
Financial and commercial dealings
• 72. You must be honest and open in any financial arrangements with patients. In particular:
• a. you must inform patients about your fees and charges, wherever possible before asking for their consent to
treatment
• b. you must not exploit patients' vulnerability or lack of medical knowledge when making charges for
treatment or services
• c. you must not encourage patients to give, lend or bequeath money or gifts that will directly or indirectly
benefit you
• d. you must not put pressure on patients or their families to make donations to other people or organisations
• e. you must not put pressure on patients to accept private treatment
• f. if you charge fees, you must tell patients if any part of the fee goes to another healthcare professional.
• 73. You must be honest in financial and commercial dealings with employers, insurers and other
organisations or individuals. In particular:
• a. before taking part in discussions about buying or selling goods or services, you must declare any relevant
financial or commercial interest that you or your family might have in the transaction
• b. if you manage finances, you must make sure the funds are used for the purpose for which they were
intended and are kept in a separate account from your personal finances.

3. Financial Independence
• state of having sufficient personal wealth to live, without having to
work actively for basic necessities

4. Rich Dad's CASHFLOW
Quadrant: Rich Dad's Guide
to Financial Freedom

5. The E-Myth Revisited: Why
Most Small Businesses Don't
Work and What to Do About It
Michael E. Gerber

6. The 4-Hour Workweek: Escape
9-5, Live Anywhere, and Join
the New Rich
Timothy Ferriss

7. Wealth
• net worth (assets minus liabilities)
• generates automatically
• capital gains,
• income, and
• Dividends
True wealth means having control over your time. Unless you get
to do what you love every morning when you get out of bed, you
are not successful. You are merely a highly paid wage slave.

8. Applying MBA Knowledge and Skills to Healthcare
Reza Nassab , Vaikunthan Rajaratnam, Michael
Loh , B. Sonny Bal (Foreword)
www.mbamedicine.com

9. • Asset Accumulation
Accumulating assets can focus one or both of these approaches:
Gather revenue generating assets until the generated revenue
surpasses living/liability expenses.
Gather enough liquid assets to then sustain all future living/liability
expenses
Expense Reduction
Another approach to financial independence is to reduce regular
expenses while accumulating assets, to reduce the amount of assets
required for financial independence. This can be done by focusing
on simple living, or other strategies to reduce expenses.

10. strategies to reduce expenses
• Tax
• Lifestyle
• Purchases
• Deals
• Generate revenue in high currency
• Spend in low currency

11. http://en.wikipedia.org/wiki/Financial_independence

12. Passive sources of income
• Rental property
• Dividend from stocks, bonds and income trusts
• Bank fixed deposits and monthly income schemes
• Royalty from books, patents, music, etc.
• Alimony, Child Support or Child Trust Fund
• Renting out professional or academic qualifications
• Interest earned from deposit accounts, money market accounts or loans
• Oil leases
• Notes
• Business ownership
• Patent licensing
• Trust deed (real estate)
• Life annuity
• Pensions

13. Cash Flow Quadrant

14. Profit and Loss
• Profit(P) = Revenue(R) – Costs (C)
• The financial functions therefore include:-
• 1) Recording financial data - This is the ‘book-keeping’ part of
accounting.
• 2) Measuring the result - This is the ‘financial’ part of accounting.

15. Profits
• 1) Retained for future investment and growth – this is what happens
in NHS Foundation Trusts and non profit organisations
•
2) Paid out to owners and investors e.g. a ‘dividend’ – this happens in
for profit companies
•
3) Paid as tax

16. Balance Sheet
• A balance sheet is a statement of the total tangible
assets and liabilities of an organisation at a particular date - usually
the last date of an accounting period.
• (1) A statement of fixed assets, current assets and
the liabilities (sometimes referred to as "Net Assets")
• (2) A statement showing how the Net Assets have been financed, for
example through share capital and retained profits.
• Assets = Liabilities + Shareholders' Equity

17. Financial Needs
• Operating Expenses
• House
• Car
• Children's Education
• Pension
• Investment
• Leisure
• Altruism
• Taxes

18. Investment
• Property
• Stocks
• Trading
• Venture Capitalist
• Wealth Management
• Pension funds
• Insurance