Know Your Value, Choose Your Path

This Week’s Ownership Mindset:

Understanding your true value in the marketplace is crucial, as it empowers you to make informed decisions about whether to pursue employment as a W-2 employee or an independent contractor under a 1099 arrangement. In the past, this decision was often dictated by employers who held significant leverage over job terms and conditions. However, the landscape is changing dramatically due to a growing shortage of physicians. As healthcare facilities scramble to fill vacancies, they increasingly recognize the need to accommodate professionals' preferences regarding employment types. This shift grants you greater negotiating power and flexibility to tailor your career path according to personal goals and lifestyle choices, transforming what was once a rigid system into one that truly reflects your worth and priorities.

You’re More Valuable Than You Think

There’s a moment I’ll never forget. It was during my second decade of practicing rural family medicine. I had just completed a complex delivery in the middle of a stormy Indiana night, and as I drove home on empty roads, I found myself asking a simple but profound question:

“What am I really worth in this marketplace?”

It's time to shift your focus from merely contemplating, "What does my employer think I'm worth?" or pondering over questions like, "What's the average RVU bonus this year?" These queries, while relevant in certain contexts, often limit your perspective and potential.

Instead, the pivotal question you should be asking yourself is:

"What is my true market value, and am I effectively capturing it?"

Understanding and asserting your market value empower you to take charge of your career trajectory. By recognizing your unique skills and contributions in relation to the broader industry standards and demands, you position yourself not just as an employee but as a valuable asset. This approach enables you to negotiate better compensation packages that truly reflect your worth in today's competitive job market.

That single question eventually led me to restructure my entire professional life, beginning my journey as a micro-corporation.

By reevaluating my compensation structure, I uncovered a compelling opportunity for financial growth. Initially, I realized that my earnings were not aligned with Fair Market Value; instead, I was entangled in an outdated and inequitable employee compensation matrix-system. Transitioning from a W-2 to a 1099 contract significantly reduced my tax burden and opened doors to increased income retention. Furthermore, by monetizing tasks I previously performed without compensation, such as APP supervision, unassigned hospital calls for newborns, pediatrics, and obstetrics, sports medicine athletic trainer supervision, and corporate governance roles—I began to see substantial financial benefits. This strategic shift resulted in an impressive increase of over $200,000 annually by simply restructuring the business model of the work I was already doing.

I turned out, by worker smarter, rather than harder, I could make $200k more per year.

You can listen to my journey by purchasing the audiobook version of my best selling book"Doctor Incorporated: Stop The Insanity of Traditional Employment and Preserve Your Professional Autonomy”

And now, in the midst of a national physician shortage, an unprecedented opportunity awaits you. Imagine wielding negotiating power akin to the most sought-after professionals. This is not just a dream, it's a reality that is more accessible than ever before. As the healthcare landscape evolves, so is the employer-physician dynamic, and it’s undergoing a significant transformation. What was once rigidly structured, a fixed menu of W-2 employment options, is now morphing into something remarkably flexible and adaptable to individual needs. Employers are rethinking traditional arrangements, eager to attract and retain top talent by offering innovative contract terms and customizable working conditions that cater to your professional aspirations and lifestyle preferences. Embrace this moment; seize the chance to shape your career on your own terms in ways that were previously unimaginable.

But here’s a fundamental truth about this process:

You can’t claim your market value, when you don’t know what you’re worth.

Information Assymetry

Until now, hospitals and large employers have monopolized the FMV standards through companies like MGMA, creating a barrier so high that individual physicians can't access this crucial data. This situation allows them to sway the creation of these FMV figures and control how compensation ranges are interpreted, expecting you to accept their version without question. This is an urgent issue that demands immediate attention! Sadly, short of hiring a company like Contract Diagnostics to access this data, most doctors have been forced to spit-ball their proposed compensation as being “fair.” This is even skewed further with graduating residents who easily view any 6 figure contract as being “reasonable” compared to their residency pay.

Introducing OffCall and Marit Health, two physician-led organizations dedicated to compiling compensation data for doctors. These platforms aim to serve as reliable sources for Fair Market Value (FMV) compensation information. Notably, they offer their services at no cost to you. Be sure to explore what OffCall and Marit Health have to offer.

Case Study: Dr. Jone’s Pivot

Dr. Jones was ten years into her career as a general internist. She had always been employed, first by a hospital system, later by a multispecialty group. The hours were long, the control minimal, and her compensation opaque.

During a business consult through PEA-SimpliMD, we walked through a simple compensation transparency exercise that compared her collections with her actual take-home. She was stunned: the practice was collecting over $500,000/year on her work, but her salary was only $190,000.

After reading my free guide “Why Every Doctor Should Form a Micro-Corporation”, she realized something essential: by shifting to 1099 work, she could structure her life around flexibility, autonomy, and wealth-building.

Dr. Jones didn’t have to move. She didn’t have to open her own clinic. She simply restructured her job around her value.

Think Like a Marketplace Player, Not an Employee

In today's healthcare economy, employers are finally starting to recognize what physician shortages mean. They're offering:

• Hybrid W-2/1099 structures

• Employment-lite agreements

• Flexible job share and locums arrangements

• Telemedicine panels and per-visit pay

• Schedule autonomy in exchange for productivity

But none of these opportunities will serve you unless you shift your identity from “job seeker” to “marketplace player.”

If this mindset is new to you, explore our free tool “Mindset Shift Mapping” to reframe how you see your professional identity.

Throwback Wisdom

“Employment is a mindset, not a mandate. Once you know your true value, you'll stop negotiating for PTO and start negotiating for equity.”

This principle is echoed in my e-book:

👉 “Know Your Marketplace Value”

you can also read more posts in my blog The Independent Physician.

Read more on the Independent Doctor Blog →

The 1099 Advantage Is More Than Money

When you transition to 1099 (even for part of your income), you open the door to:

✅ Tax savings through deductions and entity structuring

✅ Retirement flexibility with Solo 401k or SEP-IRA

✅ Direct negotiations with your clients or employers

✅ Control of your time and project mix

✅ True income potential based on output, not titles

Need help structuring this transition? Our course, “Doctor, You Are A Business”, walks you step-by-step through how to legally and financially set up your micro-corporation, even if you’ve never run a business before.

Your Identity Shift Starts Here

The physician marketplace is changing. Don’t wait for someone to offer you autonomy—claim it.

If you're ready to make this mindset shift permanent, take the next step:

👉 Start Your Transition with My Course “Creating A Practice Without Walls”

This highly popular evergreen course will walk you through how to set up a virtual micro-corporation that will help you thrive in the marketplace!

Today only, you can get it for 50% off by going here.

Identity Shift Step

“Still thinking like an employee? It’s time to own your time, your work, and your income.”

👉 Start Your Transition to Self-Employment with PEA Explorer Membership →