Advising is not doctoring

Doctors are now more interested in becoming advisors or consultants to sickcare companies. But, many lack the knowledge, skills, abilities and competencies to add value. At the same time, companies looking for physician consultants and advisors, particularly startups with limited experience in sickcare, are not clear about who they want, what they want them to do or have unrealistic expectations about their ability to deliver results.

Part of the reason is advising is not doctoring. Some differences are:

• Emphasis on results, not effort
• No expectation to always take your advice
• Less income
• Less trust
• Differences between the clinical and entrepreneurial mindset
• The consultant is not responsible for the outcome
• Usually temporary
• Client-advisors relationships not as important in getting results
• Different payment model
• No fiduciary relationship
• More limited liability exposure
• Team dynamics
• Importance of networks
• Required experience and knowledge in sales and marketing
• An entitled pay for effort, reimbursement, grant attitude v results based pay for performance attitude
• Differences in real and perceived job security
• A patient won't ask you to sign an NDA. Here's why you shouldn't if a potential client wants you to. Here is a template in case you decide to anyway.

Another is how you get paid. In clinical medicine, you perform a service, fill out a bunch of forms and hope that some third party will pay you what you billed, which is often not the case. Then you are responsible for collecting copays and deductibles.

For employed physicians, salary was the main method of physician compensation in 2018, with two-thirds of doctors earning a portion of their income from salary and 56.9% earning more than half of their income from this method of payment.

Meanwhile, 54.9% of physicians received compensation based on personal productivity and, for 28.6%, more than half of their income was productivity based.

As an advisor, you typically will use one or all of three revenue models-per hour, project based or retainer and agree to the terms and conditions of payment e.g. sending $1000/month retainer on the first business day of each month via electronic funds transfer. Sometimes, you get a success fee or bonus based on results.

But, when it comes to getting a finders fee for raising money for startups, be careful. We can't tell you how often we are presented with this question. For the most part, the answer is a clear "no," but why is that? The short answer is that—except under certain limited circumstances—it is likely illegal, it may provide investors with a right to their money back with interest and attorney fees, and it may result in, among other things, founders being held personally liable to investors.?

Finding investors is one of the biggest challenges facing startups because most founders don't have an established network of investors ready to invest capital. Often, founders who are seeking to expand their network of investors will run into someone who would be happy to make a few introductions … for a fee. RUN AWAY!!

Here are things you should know if you get paid with equity.

Hiring managers are increasingly using freelancers to augment their workforce. But what does it take to succeed in this sector? How can new workers take advantage of the many benefits this path offers, including better work-life balance, flexibility, and more time with family?

• Know your worth:?When freelancing, you can decide when to work, where to work, and your rates — or, essentially, how much you’re worth. One way to do this is to find your niche, become an expert in it, and then communicate your value, clearly and concisely.
• Build loyalty: While you might have to do extra work to get the client, you also have to work to keep them coming back. Repeat work is often considered a goldmine for freelancers because it leads to both consistency and referrals.
• Be adventurous:?You can shape the job around your passions and your lifestyle, but staying too comfortable can also limit your ultimate potential. Put yourself out there and don’t be afraid to promote yourself and what you have to offer using social media.
• Hunt in packs: Be?bold about approaching other freelancers with a proposal to take on projects together. Research shows that?freelancers who teamed up got repeat jobs from the same client.
• Given the uncertain state of the economy, companies are introducing cuts in the form of slimmed-down office space and a reduction of consultancy spending. That means you should consider the value of the intangible benefits of being an advisor, like building your networks, developing your skills, building your resume, and positioning yourself for future gigs that include cash and equity compensation.

Conflict of interest is another concern. Are practicing physicians who advise medtech, big tech or biopharma companies influenced how they treat their patients?

Becoming an advisor or consultant to a sickcare company will require that you rewire, not retire to do a side gig. Anything short of that is a waste of time and money.

Arlen Meyers, MD. MBA is the President and CEO of the Society of Physician Entrepreneurs

Updated 8/2022