Achieving financial security is a struggle for many advanced practice providers (APPs), especially if you have student loans. Putting off thinking about the future, though, can have tough consequences. Morgan Murray, CRNP, PMHNP-BC, a psychiatric nurse practitioner and entrepreneur influencer, says this was an eye-opening lesson she realized early in her career.
Murray’s graduation from her nurse practitioner program was the first time she was fully responsible for her finances. She broke up with her partner at the time, who had helped pay bills. “I met so many other nurses who were completely broke, and it was scary,” she says.
One nurse colleague who was living paycheck to paycheck and was getting sued for medical malpractice made her realize how precarious financial stability as an APP could be, she says.
“As nurses, we’re used to having one of the most stable jobs in healthcare. We always assume we’ll have a job. But what happens when we don’t? That experience showed me I needed to be more diligent,” says Murray.
Whether you’re working for an employer, a solo provider or both, Murray offers tips to find financial stability as a nurse or APP.
1. Diversify your income streams
Relying solely on a clinical practice for income can cause cash flow challenges, a lesson Murray realized when a Medicaid administrative error kept them from paying one month. Payment delays from insurance providers or sudden changes in patient volume can also impact your cash flow.
Maintaining a part-time job with an employer while starting a side hustle can give you more financial stability and peace of mind. This might contradict the common online advice to “go all in” on your business, says Murray.
“There are so many factors you can’t control. Two or three income streams should be the norm for nurse practitioners because anything can happen,” she says.
2. Focus on becoming a skilled clinician before starting your own practice
Starting a new practice is hard enough on its own. If you’re a new nurse practitioner or physician associate, Murray recommends waiting to launch your own practice. “No brand-new nurse practitioner should be opening a practice because that’s the quickest way to burn out. Focus on learning to be a great practitioner first, then consider starting a business later,” she says.
Murray recommends spending the first few career years honing your clinical skills. Learn how to treat and retain patients, provide excellent customer service and efficiently manage your workload. Building a solid clinical foundation will make your transition to business owner smoother when you’re ready.
3. Protect your license and your finances with medical malpractice insurance
Murray’s first step when she heard her colleague was getting sued was to make sure her own professional liability policy was active. Because she realized she was once unprepared, she knows many other nurses and APPs don’t know enough about professional liability insurance. “They don’t understand the differences, how much coverage they should have, or if their policy will protect them when they leave a particular institution,” she says.
Knowing these answers is crucial because getting sued as a provider is nearly inevitable, says Murray. “It’s hard to go through a 30-year career without being sued. Understand how to navigate these risks and find a trustworthy insurance company,” she says.
Most clinicians Murray speaks to online don’t understand the need for professional liability insurance as an employee or that the cheapest policy may not be the best one. “If the company you had a policy with goes out of business, and you’re sued years later, you’re in trouble, especially without a tail policy,” says Murray.
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4. Educate yourself on financial planning
One of Murray’s first steps toward financial stability after seeing colleagues struggle was to open a Roth IRA investment account.
Understanding your income and expenses is key to maintaining a budget and achieving financial stability. “The most important thing is understanding your debt-to-income ratio. Many people don’t grasp this until they apply for a mortgage or a business loan. I knew how much house I could afford before I ever went to the bank,” says Murray.
For beginners, Murray recommends podcasts that cover the basics of personal finance, like Suze Orman, Dave Ramsey and Anthony ONeal.
5. Negotiate fair compensation
One of Murray’s followers’ most common questions is about compensation. Regardless of the going rate, Murray encourages APPs to understand their market value and be prepared to ask for fair compensation.
“Your time is billable, and you need to be paid fairly for that,” she says. Before accepting a position, research the average compensation for APPs in your area, and don’t be afraid to negotiate,” she says.
For example, Murray advises that psychiatric nurse practitioners never accept less than $60 an hour, regardless of the role.
Finally, Murray recommends being patient with yourself. “Your journey is your own, and financial security isn’t about achieving perfection overnight. It’s about making smart, strategic decisions over time.”
Learn more about CM&F Group’s medical malpractice insurance. CM&F Group offers professional liability insurance to over 150 types of healthcare professionals. All our coverage options are available online, allowing our clients to obtain liability insurance coverage within minutes.
