How Physicians Are Boosting Their Income Outside of Medicine

April 21, 2025

You worked hard for your medical degree. But more physicians are realizing that relying solely on clinical income may not be the most sustainable long-term path.

You don’t have to trade all your time for money.

Let’s look at how physicians across the country are building wealth outside the exam room—without giving up their identity as a doctor.

1. Real Estate Investing

Real estate is a top pick for physicians looking to diversify income.

It offers cash flow, tax advantages, and long-term equity growth.

Popular strategies include:

Single-family and multifamily rentals
Short-term vacation rentals (Airbnb)
Commercial properties
Real estate syndications (passive group investing)
Investing in REITs inside retirement accounts

Example:
A hospitalist in Arizona bought a 4-unit building. After mortgage and maintenance, she clears $1,800/month. She self-manages with a property manager app and spends about 2 hours per month on it.

Ask yourself:
Could you cover your mortgage or student loans with just one rental?

2. Telemedicine, Chart Review, and Consulting

Telehealth allows you to work from anywhere—on your own schedule.

Other options include:

Chart reviews for legal or insurance cases
Consulting for med-tech companies
Pharmaceutical advisory boards
Expert witness work in court cases

Example:
A cardiologist earns $500/hour reviewing malpractice cases. He spends one weekend per month reviewing two files and averages $3,000 in extra income.

What could you do with 8 hours a month?

For more ideas on side gigs—and how to reduce taxes on extra income—read this breakdown of physician moonlighting strategies.

3. Entrepreneurship & Business Ownership

Doctors are turning into entrepreneurs by launching:

Medical spas
Ketamine therapy clinics
Concierge and direct primary care (DPC) models
Functional medicine or hormone therapy clinics

Example:
A family physician in Texas launched a cash-based DPC clinic and now makes more per patient with fewer admin headaches. He also offers IV therapy for cash-paying clients.

Are you building someone else’s business—or your own?

If you’re running or launching a practice, consider restructuring your medical business to maximize tax efficiency.

4. Digital Course Creation & Online Coaching

Physicians are now building educational platforms to teach:

Medical students and residents
Other doctors (CME and skills training)
Non-medical audiences (health, fitness, mindset)

Example:
An anesthesiologist created an online course teaching other physicians how to start locums work. He’s sold over 1,000 courses at $297 each.

What expertise do you already have that others are searching for?

Hosting live courses or workshops during travel? You may qualify for deducting parts of your trip as a business expense.

5. Angel Investing and Venture Capital

Many doctors become accredited investors and explore:

Startups in health tech
Early-stage biotech
Alternative asset funds (e.g., real estate, energy, insurance)

Example:
A group of physicians pooled $200,000 into a wearable glucose tech startup. Two years later, it was acquired—netting each partner 4x return.

What startups are you already using that might accept investors?

Even within traditional groups, there are opportunities to optimize your tax situation. See how your physician group’s structure might be increasing your tax bill.

6. Content Creation: YouTube, Blogs, Newsletters

Doctors are becoming creators—and turning knowledge into revenue.

Content channels to monetize:

Medical blogs with affiliate links
YouTube health education channels
Substack newsletters
Instagram/TikTok for health tips

Example:
A psychiatrist runs a mental health YouTube channel with 50K subscribers. Monthly ad revenue is $2,000–$3,000. She repurposes content from her clinic sessions.

You already educate patients—could you scale it to thousands?

7. Owning Franchises

Franchising gives you a business in a box—with systems already built.

Physicians have invested in:

Urgent care franchises
Fitness centers like OrangeTheory
Health-focused food concepts
Senior in-home care services

Example:
An internist owns 2 senior home care franchises in her state. Her managers run the day-to-day, and she collects profits quarterly.

Would you rather keep clocking in—or build something that pays even when you’re off?

8. Private Insurance Strategies (e.g., 831(a) Captives)

Sophisticated doctors are creating their own private insurance companies to:

Reduce taxable income
Self-insure for business risks
Retain profits in a tax-advantaged vehicle

Example:
A pain clinic owner set up a captive insurance company. Over 5 years, it retained $750,000 in pre-tax profits and now earns investment income.

Would you rather pay taxes on $750K—or control it within your own structure?

Whether you own a practice or side business, understanding your business deductions is key to long-term tax savings.

9. Real Assets: Land, Timber, Storage, Farmland

Some physicians are exploring alternative hard assets that:

Produce passive income
Hedge against inflation
Offer depreciation or conservation tax deductions

Example:
A surgeon invested in farmland leased to a soybean producer. The yield? 5%–7% annually, plus a write-off via conservation easement.

What other asset classes are you missing out on?

10. Licensing, IP, and Royalties

If you’ve created anything valuable—software, curriculum, books, or medical devices—you can monetize it through licensing.

Example:
A pediatrician created a health app for new parents. She licensed the tech to a healthcare system and now collects royalty payments quarterly.

Is there something you’ve created in practice that could be repackaged?

Final Thought

You earned your degree. You built your expertise.
But your income doesn’t have to be limited to the clinic.

You can build multiple streams of income that give you options, flexibility, and long-term wealth.

What’s one small step you can take this month toward your first non-clinical income stream?

Visit contact physiciantaxsolutions.com to schedule a consultation and learn how we can help you take control of your tax strategy today.

So the real question isn’t “Can I afford a tax advisor?” It’s “How much is it costing me not to have one?”

This post serves solely for informational purposes and should not be construed as legal, business, or tax advice. Individuals should seek guidance from their attorney, business advisor, or tax advisor regarding the matters discussed herein. physiciantaxsolutions.com assumes no responsibility for actions taken based on the information provided in this post.