How financial independence can grow the care economy

At First Women’s Bank, we’ve spent a lot of time analyzing the care economy. What we have observed is that the healthcare sector has emerged as more than just a category; it is a cornerstone of the modern, mission-based women’s economy.

We see the immense value women physicians contribute to their communities, while also recognizing the challenges that can come with traditional employment models. While studies estimate female physicians earn $2 million less than male physicians throughout their respective careers, we consider both the social impact of this gap and where economic improvement is possible.

The surge of women starting their own practices signals that the era of simply following traditional paths is changing. We see this movement as being driven by three essential motivations that allow women to bypass systemic hurdles.

1) Ownership is an investment in potential future wealth. It provides financial agency and the opportunity to access capital to grow a practice. A higher immediate salary isn’t a guarantee, but keeping women in the driver’s seat of their careers is.

2) Private practice ownership offers the freedom to lead. Starting a practice can create a clearer path to leadership, allowing women to shape their careers more directly.

3) Ownership enables purpose-driven care. Many women are driven by a personal mission and values that do not always align with the rigid structures of large-scale medical employers. Ownership grants the freedom to deliver care in a way that honors those specific values and personal missions.

While we see practice ownership as a path to financial independence for female physicians, there is a lending gap that must be addressed.

HOW TO BRIDGE THE CAPITAL GAP

The gender lending gap is a stark disparity: women own 14 million businesses but receive only 16% of commercial bank loans and 4.4% of total small business loan dollars. In many cases, fixing the gender lending gap starts with addressing the confidence gap that many women across all industries face when financing and launching a business for the first time.

While securing the right funding is essential, it is just as critical for women to have access to educational resources and support systems that help them navigate the challenges of practice ownership. These alliances play a key role in easing the natural friction that comes with building and running a business.

For female physicians to become successful entrepreneurs, they need to be equipped with a specific set of advocacy and business tools. These include:

• Financial literacy resources
• Growth capital
• A peer community
• Research-backed professional development

When the industry addresses the leadership gap at every stage, from medical school through senior executive roles, because financial independence is most powerful when it’s paired with institutional change. That is one reason why our alignment with Women in Medicine® (WIM) is so vital. Founder Shikha Jain, MD, shares our belief that when women physicians are financially independent, they have the power to stay in the driver’s seat of their careers and the healthcare system at large.

THE BOTTOM LINE

As more women open their own practices, we are seeing a shift toward greater agency in how physicians structure their careers and deliver care to their communities. Ownership offers one pathway for those seeking more control.

Marianne Markowitz is president and CEO of First Women’s Bank.

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