Catering to physicians: Specialized financial services firms find a niche

Some advisers are pitching their business exclusively to doctors and their unique needs. Other firms are getting wiser about the physician market in response.

By Katherine Vogt, AMNews staff. April 24, 2006.

When David Hill, MD, started looking into purchasing disability insurance, the orthopedic surgeon turned to an online forum for information. From there, he came into contact with a certified financial planner and insurance underwriter who happened to specialize in working with physicians.

Dr. Hill, who is doing a fellowship in New York, was impressed by the adviser's knowledge and unique understanding of his needs. After several weeks of communication, he bought a policy from the adviser, who ran a firm called Physician Financial Services.

"Having someone specialize in physicians really made a big difference," Dr. Hill said. "He was able to recommend things specifically to me being a surgeon that someone who's an internal medicine doctor might not necessarily need."

Dr. Hill is among a growing number of physicians who have turned to niche financial services firms that cater to physicians. Some have names containing terms such as "physician adviser" and "medical resource," and they are marketed exclusively to physicians. Others aren't quite as obvious, perhaps functioning as a "health care group" within a larger firm and relying on their established client base for new physician referrals.

These firms claim to have a special understanding of physicians' financial needs. They might specifically bill themselves as experts on financial issues of unique importance to physicians, such as asset protection, or they simply might bank on their overall experience in working with physicians to develop niche expertise. Some might offer more practice management services to draw medical practices, while others are designed solely for the personal financial needs of physicians.