The Hidden Cost of a Job Change for a Doctor and Their Family

Changing jobs might seem like the fix to your burnout or frustration. Maybe you’ve been offered a higher salary, a lighter call schedule, or a better location. But before you jump, it’s worth pausing to ask: What is this really going to cost me? Not just financially, but emotionally, relationally, and professionally.

I know this firsthand, and I’ve walked with dozens of physicians who were surprised by how disruptive a job change can be.

Let me show you what I mean.

What Happened to Me (and What I Learned)

Over a decade ago, I found myself disillusioned with traditional W-2 employment. It wasn’t just the bureaucracy or burnout—it was the gnawing sense that I had lost control of my career. I wanted a change, but I didn’t want to uproot my family, lose my patient relationships, or walk away from everything I had built.

Instead of jumping to a new employer, I created a micro-corporation and transitioned to a 1099 role with the same hospital. Overnight, I became my own business. The shift was invisible to my patients and colleagues, but it was monumental for me. I called it my "Employment Lite" evolution.

This change saved me from the hidden costs of a traditional job switch—and helped me discover a path that many physicians have since taken. But some, like Dr. Rast, learn this the hard way.

Case Study: Dr. Rast’s Costly Move

Dr. Rast, a hospital-employed internist, accepted a lucrative offer in Texas. But that happened because his prior job in Cleveland was toxic, and he didn’t realize his Ohio contract included a 30-mile non-compete. That clause alone forced a full-family move. Here’s what that cost him:

• $20,000+ in relocation expenses

• 3 months without income during credentialing

• $60,000 lost from his wife’s career disruption

• $30,000 in unvested retirement matching forfeited

Total cost? Nearly $150,000.

Eventually, he realized the problem wasn’t where he worked—it was how he worked. Dr. Rast formed his own micro-corporation and rebuilt his practice through telehealth, locums, and a cash-pay obesity clinic. Today, he’s thriving.

The Hidden Financial Costs of a Job Change

1. Non-Competes & Contractual Traps

Many contracts require physicians to repay sign-on bonuses, stipends, or relocation reimbursements if they leave early. Worse yet, non-compete clauses might force you to leave your city altogether.

👉 Download this PEA Physician Employment Contract Guide can help you analyze your contract before you leap.

2. Licensing & Credentialing Delays

Changing states? Expect 2–6 months before you’re fully credentialed. During that time, your income stops, but your bills don’t. Can you float your household that long?

3. Loss of Accrued Benefits

Your PTO, retirement vesting, CME funds, and insurance continuity may disappear. These losses can quietly erode what looked like a raise.

4. Spouse Career & Kids' Education Disruption

Your spouse’s career and your kids’ stability are rarely factored into recruiter spreadsheets. But they should be. These hidden costs can show up as lost income, stress, and social dislocation.

5. Cost of Living Discrepancies

A higher salary doesn’t always mean more money. Property taxes, state income tax, housing markets, and school district fees all matter. Use this guide to evaluate total life balance, not just salary.

Another Real Doctor’s Journey: A Family in Transition

One of the physicians I’m currently coaching is undertaking a significant life change by relocating her family three hours away in order to rejuvenate her career. This decision follows an unexpected and challenging setback when her first job came to an abrupt end due to the closure of the hospital's obstetrics unit, which was a critical component of her family medicine with obstetrics (FM-OB) practice.

The closure not only disrupted her professional trajectory but also dealt a major blow to her specialized skills and passion. As she navigates this period of transition, she is immersed in the complex process of selling her home and uprooting her children from their familiar surroundings. Yet, amidst these challenges lies a resilient determination to forge a new path forward.

Her strategic plan for reinvention begins with establishing a micro-corporation as the foundational step toward launching a dedicated Direct Primary Care with Obstetrics (DPC-OB) clinic. This endeavor represents more than just a shift in business focus; it signifies an entire lifestyle reset driven by well-defined goals and aspirations.

While the financial and emotional costs are tangible and considerable, they are outweighed by the clarity of her vision: achieving greater autonomy over her professional life, reigniting her sense of purpose, and securing long-term stability for both herself and those she serves. With this bold move, she aims not only to rebuild but also to thrive in an environment where she can deliver personalized care on her own terms, unencumbered by previous constraints.

The Alternative Path: Micro-Corporation Ownership

Instead of enduring another painful cycle of employer disappointment, consider this:

You can structure your career around you. Your micro-business can:

• Negotiate contracts on your terms

• Enable job stacking (telehealth, locums, consulting, DPC, expert witness)

• Access major tax deductions (like home office and mileage)

• Build real wealth rather than depend on W-2 crumbs

Want to know how?

👉 Download my free e-book: Why Every Doctor Should Form a Micro-Corporation.

Final Thoughts: Before You Leap

Every physician should look beyond the recruiter pitch. When you factor in credentialing delays, lost benefits, family disruption, and contract traps, job changes can cost you more than you gain.

But there is another way. You don’t need another boss—you need a business mindset.

At PEA-SimpliMD, we’ll show you how to:

• Build your micro-business with our PEA Explorer Membership

• Learn how to escape corporate medicine with my free digital book

  👉 download for free: ESCAPE from Corporate Medicine

• Take the next step with a business strategy session

  👉 schedule a 1:1 personalized Business Strategy Session and let’s discuss your situation and map out a business strategy that can help you thrive.

Let your next move be on your own terms.

📂 Is This Deductible?

Q: During a recent coaching meeting, a physician asked

“Can I deduct the one-hour drive from my home to the hospital as a micro-corp?”

A: The answer:

“Not if it's a commute, meaning you are traveling from your home to your primary work location. But if you maintain a home office for your micro-corp, then yes—it's a business-to-business trip and deductible.”

Learn more with our exclusive PEA guides with these downloads:

• Home Office Deduction Guide

• Mileage Reimbursement Tips

🔧 Tool of The Week: Mileage tracking using MileIQ

👉 MileIQ will manage your mileage documentation with minimal hassle, all done on your phone using GPS technology. It’s what I use, and love it.

📨 Join the Movement

"If you don't build your dream, someone else will hire you to build theirs."

Thousands of doctors are escaping the employment trap by forming micro-corporations.

Are you ready to join them?

Join the PEA Explorer Membership →