Orthopedics, plastic surgery and dermatology are among the medical specialties that may yield a higher return on investment than a career in investment banking, according to an independent analysis submitted to STAT.
Zach Nayer, a medical student at George Washington University School of Medicine and Health Sciences in Washington, D.C., calculated the net percent value of a career in different medical specialties for a 22-year-old college graduate with a retirement age of 65. Mr. Nayer's analysis includes medical school tuition, length of residency and the opportunity cost of medical education, and accounts for interest rates. He used data from the Medscape Physician Compensation Report 2017, the Association of American Medical Colleges, Time and Forbes.
Mr. Nayer then analyzed how return on investment for various medical specialties stacked up against a career in investment banking. The average salary for new investment bankers is $114,000 including bonus and $163,000 for third-year analysts, he said. Mr. Nayer recalculated the net present value for each medical specialty, assuming no growth in salary for investment bankers, which he said is highly conservative.
Here are the six specialties with estimated values at least $1.5 million more than investment banking, beginning with the highest value.
1. Orthopedics — $2.5 million
2. Plastic surgery — $1.7 million
3. Dermatology — $1.6 million
4. Urology — $1.5 million
5. Otolaryngology — $1.5 million
6. Radiology — $1.5 million
For Mr. Nayer's full analysis, click here.