Healthcare Reform: Things they should teach our doctors in med school.

 

Foreword: This article was kept back for quite some time until today for the reason that it might cause a stir among many of our business partners, affiliates and a handful of close friends. I do not intend to discredit the medical profession in general nor embarrass anyone. My sole intention is to let them know that they should put people first above all before themselves.

 

Quality healthcare is one of the very basic benefit every Filipino should and always have. Yet, even those who have and can afford, cannot truly appreciate health care in its true sense of the word. I'd say, much of the problems in service delivery  lies entirely not our government or the system but from the principal drivers of health care - the doctors.

I have listed some common and very annoying habits that doctors do or doesn't do in the practice of their profession and what med schools should teach to our young graduates.

 

1. Respect other people's time.

Have you ever seen a doctor who came in for work on time? Probably there are but in my experience 9 out of 10 doctors never make it on time. What's even more disheartening is the fact that people graciously accept doctors' tardiness. No one expresses anger or disappointment whenever the doctor come in late for work. Instead, they are greeted with respect and reverence much like greeting a priest in a confessional. Also, our chronically tardy doctors were given 'safe passes' or 'blanket' acceptance for such socially unacceptable behavior. It's high time that we should express to our doctors that our time is equally important as their time and that there are no excuse good enough for disrespecting our covenant of properly keeping time.

 

2. Always consider patient's financial capacity.

The cost of health care including diagnostic tests and medicines are steep these days most specially with the advancement of very modern medical technology. Ever wonder why doctors prescribe too many lab tests and not even ask if we can afford to pay for it? In retrospect, doctors should always qualify the financial capacity of the patient to pay for medical bills and that procedures should be conservative and given in accordance to patients' economic status. In other words, before an expensive procedure is to be given to a patient, a low cost alternative must first be considered unless extremely necessary.

If it may help to understand, doctors get as much as 15% to 30% percent (commission) for every laboratory referrals they make to private laboratories. The more referrals they make, the more income they generate - that is how the 'game' is played. Sad but true, there are no prevailing health care standards placed by our Government to better monitor and manage medical practice, much like an ISO for the manufacturing industry, and so doctors are left to do basically anything they want without being accountable for anything.

 

3. Give what is due to the Government.

Doctors make poor businessmen. A dishonest businessmen at that. In fact, they don't consider their practice a business at all; probably another excuse not to give official receipts and being chronically tardy. Doctors don't declare how much patients and money they earn for medical consultations. Doctors don't declare their commissions or referral fees they get from private laboratories and hospitals. Doctors don't declare cash gifts and bonuses. And, doctor's refuse to deduct taxes from services rendered to insurance holders. Well, if there is anything these doctors want to deduct from, it probably is their obligation of service and charity to their countrymen.

 

4. Stop asking favors.

We are in the business of health care and, part from being that, we hire doctors to manage our clinics. If there is truth to what our medical director once said that: "doctors need medical reps for conference sponsorships". Is it really a need or just merely a want? I pity the medical reps these days for they are reduced by these doctors to become their personal sponsors for conferences and even their dinner parties. This is one major reason why our medicines are among the most expensive in Asia because of the representation costs incurred by drug companies to these doctors. Yes, your doctor is the reason why they are expensive.

 

5. Work with the system.

Many doctors always seems to feel that they are always a cut above the rest. This probably stemmed from long and expensive education that they feel they should be given special treatment. Thus, being socially placed above the pedestal, they feel that they can work their best if there are less rules to follow. Rules that particularly govern their professional practice.

I can vividly remember when we first installed our first medical director to our chain of medical clinics and discussed on house rules and policies, they (the doctors) started feeling very uncomfortable.

 

The practice of medicine has changed dramatically over the years most specially with the advent of modern medical technology. We were able to probe deeper and understand primary causes of diseases and how we can protect ourselves from them. But, despite all the advancements, some basic yet very important things hasn't changed and that is how our modern shamans (doctors) practice their profession for the sake of science?

Creative ideas to force yourself into saving 'automatically'.

I must admit, I am not really big on saving money much less on investing. However, we all need to save and make money one way or the other; if we atleast care about securing our future or our children's future.

The only way I know then on saving money is the same way how most people still do now - apportion an income and place it in a bank. Very crude and ineffective. No wonder saving money takes so much discipline and effort to make it work.

But before we jump in, allow me to say that there are two key elements that must always be considered when saving money. Elements needed to make saving money to work for you, every time. First is doing it 'automatically' and second, protecting it from yourself .

1) Saving 'Automatically'. This means having someone apportion your money for savings on your behalf with no conscious effort. A common example may be automatic deduction by your payroll officer or automatic fund transfers by your bank.

2) Protect from yourself. These may be processes or programs that limits you from touching your nest eggs from unnecessary withdrawals for a  specific period of time.

 

So what are other ways to save and how do we start it? Here it is:

1. Increase your monthly HDMF (Home Development Mutual Fund) contributions.

I am pretty sure that right now, you are paying only the minimum required by the government for your HDMF or PAG-IBIG. And, what still many of you do not know is that, PAG-IBIG also functions like a bank (a provident saving bank).

Increasing your PAG-IBIG contributions doubles or triples your money since this will be matched equally by your employer. So, say for example, your monthly contribution of 50 bucks is matched equally by your employer with another 50 bucks. That's easy money! Also, since it is a savings deducted together with your other obligations like your SSS; it is non-tax deductible and earns dividends overtime.

This means the more you contribute the more you earn overtime and without you even knowing it.

 

2. Get a savings-linked annuities.

Annuities are premium payments made on regular intervals like monthly, quarterly or annually. There are some non-traditional investment vehicles that are now linked to savings. A very good example is a whole life insurance where you pay annuities until the age when you plan to retire and a portion of these premium payments goes to your savings. This way, one is compelled to pay and save at the same time to get covered by an insurance.

I got mine at PruLife UK with a no-frill life insurance plan. Scout for a plan that fits your needs and make sure its linked to savings. To do this 'automatically', ask your payroll officer to do an automatic salary deduction and directly deposit the premium payments to the insurance company's bank account.

 

3. Save windfalls and extra incomes to savings-linked annuities or other investments.

Yes we do have windfalls once in a while and these may be in a form of bonuses or successful business deals. Windfalls or extra incomes provide for us an opportunity to advance our payments on mortgages, savings-linked annuities, or to buy more investments. The whole idea of advancing payment on savings-linked annuities other than increasing your savings is to protect you from difficult times such as unemployment.

But do not advance your savings-linked annuities too much as you might be putting all your nest eggs in one basket. An 18 to 24 advance payment will do the job and give you enough protection during hard times.

 

4. Simplify investment. Get a Managed Fund.

I've written in my previous blog article that I am completely opposed to putting my savings in a bank since it only earns very little interest plus other deductions. So it's really not a wise move if you do and it's only the banks that earns from your hard earned money.

So where do you put your money? Put it in a managed fund. I prefer managed fund because its simple, balanced yet yields higher returns, and less time consuming. This way, my money is diversified across different investments thus making it more secure in the long run.

 

5. Pretend that you didn't get a raise.

If you do get a raise, I highly advise you NOT to tell your wife or else... you know I mean. Since you and your family has adjusted to the lifestyle prior to your salary raise, keep your mouth shut and save the extra to any investment vehicles that you may have. Again, you may pay in advance your annuities or make another investments.

You can the again negotiate with your payroll officer to direct deposit the raise to annuities of your choice.

 

6. Buy Certificate of Deposits (CDs).

A certificate of deposit is a promissory note issued by a bank. It is a time deposit that restricts holders from withdrawing funds on demand. Although it is still possible to withdraw the money, this action will often incur a penalty.

CDs only offers a small annual rate of return, usually around 5%-6% per year but the good part is it prevents you from touching your money unnecessarily. It also provides another good option to place your windfalls or extra income since it only requires a minimum of five thousand (Php 5,000.00) pesos per certificate.

 

As you can see, there are ways to force yourself to save and there are still some more out there. So far, I only included those that works for me and still slowly increases my savings contribution every so often.

--End--

That Crazy Horse

That crazy horse! I think about it a lot these days.
Missing the sulky and misguided adventures, that
brought me in countless pits of dangers and mindful follies.
She was a foolish ride no doubt, but fun nonetheless.

Since that dusky hour of our depart,
immediately I felt the weight around my waist.
Dragged and lost into lands unfamiliar;
land of virtual peace and love. So they say.

That crazy horse may be truly crazy.
yet brings the warm glow of youth and,
the liberating but wondrous joy of unpretentious mind.
With this I say, I want to break lose and find my crazy horse.

5 Simple Rules to Saving Money

Many of us would agree that saving money is an essentially important part of our daily activities yet, don't know exactly how to start and sustain it.

When I was a young kid, I was taught the value of saving money and the very traditional way of doing it - saving a few amount and putting it in a bank. That's it! There were no specific instructions or rules given on how to achieve this task and how I will manage to sustain it.

These 5 simple rules is what works for me and surely may work for you too. I wrote them here so I can always remember on how I did it and to help others who wishes to get themselves on track to saving wisely.

 

1. Set your purpose for saving money.

Just like with any other things you wish to do, you've got to have a roadmap on where you plan to go. Saving money is no exception and you should know where to put your money on and for what purpose.Knowing your goal and purpose for saving money also serve as an inspiration. It is an index to your faithfulness to save.

Some examples of purposes for saving money are: Retirement Plan, Children's College Education, Buying a house, and Emergency Funds.

 

2. Start now and just do it!

Just with any natural laws of Physics, it takes more energy to move an idle object. It is the same thing with habits, the hardest part is always to get something started.

The best time to get your savings habit (if you haven't done so), is to start NOW! One of the best advise I got on getting things done was from a Nike commercial that says: "Just do it!".  When I strongly believe on something that I know is right for me,  I just do it , take it head on and not ask too many questions- period.

So, instead of being critical about things while you waste time thinking, getting it started NOW and think as you move along is the best way to make things done.

 

3. Pay yourself first.

This is nothing new but rarely done. This means that before you pay the government (for taxes), your utilities or mortgage; you have to pay yourself first.

Most often than not, I hear families do it the other way around - pay the bills first then what ever is left will be for savings. This is a HUGE, HUGE mistake that is why many unsurprisingly, never save enough for their future.

How much should you be saving? A rule of thumb is to save between 10% to 15% of your gross monthly income - I save 17%. If your in your middle thirties and haven't really saved much, I suggest you to save as much as possible including some windfalls like bonuses or cash gifts. Catch up on the lost years that you haven't.

 

4. Do it automatically.

One thing I don't and never plan to do is budgeting. So you ask how I manage my savings without budgeting? I do it automatically!

Doing it automatically means 'automatically' deducting my income (be it for my insurance or managed funds) before it even reaches my hands. This way, I don't get tempted to use my money from other purposes I don't intend to buy. Discipline is something I don't have and so I work only with whatever income is left after deducting 'automatically' for my savings.

 

5. Do not keep it in a bank!

For many of us, we put all our savings in a bank where it only grows 1% per year. This is precisely the reason why I never put my nest eggs in them because you virtually inhibit your money from growing.

Be wise and put your money on managed funds or other investments where you have complete control on how your money is invested on. Many managed funds have at least an annual compound interest rate of 10% per annum.

Would you still keep it in a bank?

The SPIDER Rules: A Middle-Aged Dad's Guide to Personal Finance.

I am neither an accountant nor I claim to be a financial guru but I can certainly tell what makes sense if you're a middle-aged dad like me raising a family and securing our financial future. I have learned that there are only six simple rules (aka S.P.I.D.ER. Rules) for one to ensure future financial security. These rules spans time, income class or educational attainment. The degree of financial success depends on how much effort you give into all of these.

 

Rule 1: Save

The act of saving is the first basic step toward future financial security. As a rule, one should save 10-15% of one's gross monthly income - I save 17% monthly and I still live quite comfortably. Man's appetite for personal conveniences (lifestyle) is insatiable yet can only be controlled by one limited resource - money. To limit and simplify my lifestyle, my savings get automatically deducted from my paycheck and I live with what i have left. Simple yet effective.

 

Rule 2: Protect

Since I am a family man of two children, I have to protect my savings and family from unforeseen circumstances of death or debilitating diseases. I chose a no-frill permanent life insurance just enough to cover me for these unexpected events. My life insurance serve also as a savings plan with a 10% per annum interest.

 

Rule 3: Invest

Investing is an act of contributing money to make money. Savings alone is not enough to secure one's future - you have to multiply it.I started mine in mutual funds then, when I accumulated enough, it will be invested on businesses that provide a much greater return.

 

Rule 4: Debt Management

It is moronic for me to say that debt is bad because it never is. It turns bad only when it becomes unmanaged to a point where one can no longer pay for it. Here is my rule when getting a loan: only borrow money to make money. Buying a car for family use will not put money in your pocket and buying your dream house won't either. Manage your debt and put it in a controllable level.

 

Rule 5: Educate

As with any activity like a camping trip or a basketball game, it needs careful planning. Good planning starts when we are financially educated and really doing what we learned. I started by reading books from R. Kiyosaki and D. Bach and browse for more on the web. Learn as much as you can. Let education be your map to your future.

 

Rule 6: Revenue Streams

Even though I'm a part business owner of our health care company, I am salaried just like any employee in the office, but the pay is much higher. Having learned not to be complacent, I find creative and new ways to make money. And, Whatever I earn goes to the bank or some other investments. Everyone has special skills and anyone can profit from them. Be it in cooking, web design, and writing; you can turn them into profit and who knows, any of these special skills may become a huge income generating business for you and your family.

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