1887
Volume 2016, Issue 3
  • ISSN: 1999-7086
  • E-ISSN: 1999-7094

Abstract

As the cost of attendance for US medical schools continues to increase faster than inflation, students can turn to alternative sources of funding beyond traditional educational loans. The Armed Forces Health Professions Scholarship Program (HPSP) pays for medical students' tuition and fees as well as provides a stipend in exchange for an active-duty service commitment. The aim of this study was to compare the financial impact of an emergency physician joining the military versus taking student loans and going the civilian route. Cash outflows (in the way of annual attendance costs) and cash inflows (in the form of salaries) were discounted using current student loan interest rates and then added together to calculate the net present values (NPVs) of HPSP versus the civilian route. The numbers for all assumptions were taken from the Association of American Medical Colleges, military pay tables, and physician salary surveys. The NPV of the HPSP for a physician with dependents after four years of practice was found to be $576,432, which is slightly higher than the NPV of civilian physicians, calculated to be $573,351 using a nationwide median annual salary of $300,000. HPSP confers an NPV that is $3080 more than when students take the civilian route. However, any alterations in assumptions regarding pay grade, martial status, or years of service will cause great differences in final calculations. Furthermore, the financial impact of taking the scholarship is only one part of the larger decision-making process when considering to join the military.

Loading

Article metrics loading...

/content/journals/10.5339/jemtac.2016.14
2016-12-01
2019-08-24
Loading full text...

Full text loading...

/deliver/fulltext/jemtac/2016/3/jemtac.2016.14.html?itemId=/content/journals/10.5339/jemtac.2016.14&mimeType=html&fmt=ahah

References

  1. [1]. Association of American Medical Colleges. Tuition and Student Fees Reports. Available at: https://services.aamc.org/tsfreports/report_median.cfm?year_of_study  2016 (accessed 8 August 2016) .
  2. [2]. U.S. Bureau of Labor Statistics. CPI Inflation Calculator. Available at: http://www.bls.gov/data/inflation_calculator.htm (accessed 14 January 2015) .
  3. [3]. Kerr   JR., , Brown   JJ. . Costs of a medical education: Comparison with graduate education in law and business. . J Am Coll Radiol . February 2006; ;3: 2 : 122– 130 .
    [Google Scholar]
  4. [4]. Association of American Medical Colleges. Medical Student Education: Debt, Costs, and Loan Repayment Fact Card. Available at: https://www.aamc.org/download/447254/data/debtfactcard.pdf (accessed 8 August 2016) .
  5. [5]. Bale   AG., , Coutinho   K., , Swan   KG., , Heinrich   GF. . Increasing educational indebtedness influences medical students to pursue specialization: A military recruitment potential?.   Mil Med . February 2013; ;178: 2 : 202– 206 .
    [Google Scholar]
  6. [6]. Phillips   JP., , Petterson   SM., , Bazemore   AW., , Phillips   RL. . A retrospective analysis of the relationship between medical student debt and primary care practice in the United States. . Ann Fam Med.   November–December 2014; ;12: 6 : 542– 549 .
    [Google Scholar]
  7. [7]. Golden   AG., , Xu   P., , Wan   TT., , Issenberg   SB. . Estimating the net career income of a geriatrician and a nurse practitioner: Still want to be a doctor?.   South Med J.   July 2016; ;109: 7 : 409– 414 .
    [Google Scholar]
  8. [8]. Daubert   V., , Relles   D., , Roll Jr C. . Medical Student Financing and the Armed Forces Health Professions Scholarship Program . Santa Monica, CA: : Rand;   1982; .
    [Google Scholar]
  9. [9]. United States Navy. Medical Accessions. Available at: http://www.med.navy.mil/Accessions/Pages/Pay.aspx (accessed 8 August 2016) .
  10. [10]. Navy Medicine Manpower, Personnel, Training and Education Command (NAVEDPT&E) Student Programs Handbook. Available at: http://www.med.navy.mil/Accessions/Documents/NAVMEDMPTEINST%201520.1D%20STUDENT%20PROGRAMS%20HANDBOOK%201520.1D2011.pdf (accessed 14 January 2015) .
  11. [11]. Defense Finance and Accounting Service. 2016 Military Pay Chart Table. Available at: http://www.dfas.mil/militarymembers/payentitlements/military-pay-charts.html (accessed 8 August 2016) .
  12. [12]. Defense Travel Management Office. BAH Calculator. Available at: http://www.defensetravel.dod.mil/site/bahCalc.cfm (accessed 8 August, 2016) .
  13. [13]. United States Navy. Navy Medical Department Special Pays. Available at: http://www.med.navy.mil/bumed/Special_Pay/Pages/default.aspx (accessed 8 August 2016) .
  14. [14]. Federal Student Aid. Interest Rates and Fees. Available at: https://studentaid.ed.gov/types/loans/interest-rates (accessed 8 August 2016) .
  15. [15]. American College of Emergency Physicians and Daniel Stern & Associates. 2014 National Emergency Medicine Salary Survey: Academic Report . Emergency Medicine Compensation & Benefit Surveys . Dallas, TX: : American College of Emergency Physicians;   2014; .
    [Google Scholar]
  16. [16]. American College of Emergency Physicians and Daniel Stern & Associates. 2014 National Emergency Medicine Salary Survey: Clinical Results . Emergency Medicine Compensation & Benefit Surveys . Dallas, TX: : American College of Emergency Physicians;   2014; .
    [Google Scholar]
  17. [17]. Merritt Hawkins. 2014 Review of Physician and Advanced Practitioner Recruiting Incentives. Available at: http://www.merritthawkins.com/uploadedFiles/MerrittHawkings/Surveys/mha2014incensurvey.pdf (accessed 11 January 2015) .
  18. [18]. Medical Group Management Association. MGMA Physician Compensation and Production Survey: 2014 Report Based on 2013 Data. Available at: http://www.mgma.com/Libraries/Assets/Key-Findings-PhysComp_FINAL-with-copyright.pdf (accessed 11 January 2015) .
  19. [19]. Benninga   S. . Principles of Finance with Excel . New York, NY: : Oxford UP;   2006; .
    [Google Scholar]
  20. [20]. Ragel   BT., , Klimo Jr P., , Grant   GA., , Taggard   DA., , McCafferty   RR., , Ellenbogen   RG. . Economic analysis of the military health professions scholarship program for neurosurgeons. . Neurosurg . 2011; ;69: 3 : 525– 531   discussion 531–522 .
    [Google Scholar]
  21. [21]. Parrish K. DoD plans benefit revision with ‘Blended Retirement’. DoD News. Available at: http://www.defense.gov/News/Article/Article/655705/dod-plans-benefit-revision-with-blended-retirement (accessed 8 August 2016) .
http://instance.metastore.ingenta.com/content/journals/10.5339/jemtac.2016.14
Loading
/content/journals/10.5339/jemtac.2016.14
Loading

Data & Media loading...

  • Article Type: Research Article
Keyword(s): income , military personnel , personal financing , salary , scholarships and Student loans
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error