TLDR
- Physicians and dentists can explore non-practice income sources through expanding their practices to related services, contractual works with
insurance companies or private firms and industry collaborations. - Passive income streams such as renting out a vacation property can provide another source of steady income.
- Tax planning is essential for physicians and dentists to maximize returns and minimize liabilities across diverse income sources.
How doctors and dentists can grow income streams
As a physician or dentist, most of your income probably comes from the hours you spend caring for your patients. Expanding your income beyond your
practice can help boost financial security, create new opportunities, and give you more control over your financial future. That’s why more
professionals are exploring ways to diversify what they earn beyond patient care. Early in your career, this might mean picking up extra income to
help pay down debt or build savings. Later on, it could be a way to stay active in the healthcare community after retirement while still bringing in
revenue.
Whether it’s teaching, research, consulting, or even including passive income, there are many ways to supplement your income and give
yourself greater financial flexibility.
Exploring non-practice incomes sources
Expanding your income doesn’t mean stepping away from medicine or dentistry. It can involve complementary opportunities that fit alongside your
practice. Here are some avenues to consider:
1. Take on contractual work
Insurance companies and private firms often need qualified professionals to conduct independent medical or dental examinations, disability
assessments, or workplace health evaluations. These contracts can provide a flexible way to supplement your income while working around your
existing practice.
Key considerations:
- Clarify payment details — Understand rates, billing, and invoicing before starting.
- Follow regulations — Make sure agreements meet professional and licensing standards.
- Respect professional boundaries — Avoid overlaps or conflicts with your practice or patients.
- Stay organized — Keep track of hours, deliverables, and documentation for compliance and taxes.
2. Offer online health courses or webinars
Developing online courses or webinars lets you share your expertise while generating additional income. You can create educational content related
to your medical specialty or area of practice and make it available for a fee, giving learners practical insight while extending your professional
reach.
Key considerations:
- Know your audience — Tailor content to the people who will benefit most, whether patients, peers, or students.
- Maintain credibility — Ensure all information is accurate and evidence-based to build trust.
- Make it accessible — Offer content in multiple formats to reach a broader audience.
- Promote strategically — Use your website, social channels, and networks to increase visibility and engagement.
3. Create a blog or YouTube channel
A health and wellness blog or YouTube channel provides a platform to share your knowledge and connect with a broader audience. Producing engaging
content takes effort and consistency, but it also gives you the freedom to be creative and build relationships with patients, peers, and the wider
community.
Key considerations:
- Find your niche — Focus on a specific topic and audience.
- Stay consistent — Post regularly with high-quality, evidence-based content.
- Engage your audience — Encourage comments, questions, and feedback.
- Share responsibly — Be mindful of regulations, include disclaimers, and avoid providing individualized medical advice.
- Monetize smartly — Explore ads, sponsorships, or memberships while staying transparent.
- Promote strategically — Use social media, email, and your professional network.
- Cross-promote — Use your content to highlight other offerings like courses or ebooks.
4. Explore Industry collaborations
Consulting, serving on advisory boards, participating in clinical trials, or speaking at conferences can help you build your profile and connect
with the broader industry. While these roles often offer modest compensation, they provide valuable exposure and professional growth.
Key considerations:
- Align with your practice — Choose opportunities that fit naturally with your professional focus.
- Prioritize ethics and transparency — Be clear about your role and avoid potential conflicts of interest.
- Consider time and capacity — Make sure outside activities fit alongside your clinical responsibilities.
- Monitor compensation and agreements — Be clear on expectations, payment terms, and any regulatory requirements.
Incorporating passive income
With the demands of running a practice, it’s no surprise that physicians and dentists often have little time to pursue additional income streams.
That’s where passive income can help fill the gap. At its core, passive income refers to earnings generated with limited ongoing effort — income
streams that continue to provide returns even when you’re not directly involved day-to-day. Here are a few ideas for passive income:
1. Turn your property into a revenue stream
Your vacation home isn’t just for weekends — it can earn for you year-round. Turn your chalet or cottage into a source of steady income and add
another layer to your financial strategy.
Key considerations:
- Understand regulations and taxes — Check local rules and reporting requirements.
- Evaluate insurance needs — Make sure your property is properly covered.
- Decide on management approach — Choose between self-managing or hiring a service.
- Plan for personal use — Balance rental availability with your own time at the property.
- Track finances — Monitor income, expenses, and potential deductions.
2. Invest in a private business
Whether it’s a startup in healthcare, a local business in your community, or a venture in a completely different sector, owning a stake allows you
to benefit from potential growth while leveraging your expertise and insights.
Key considerations:
- Do your homework — Understand the business model, market, and risks before investing.
- Assess your role — Decide whether you’ll be a hands-on partner or a silent investor.
- Diversify — Avoid putting all your capital into a single venture.
- Protect your investment — Ensure agreements, legal structures, and exit options are clear.
- Balance time and commitment — Make sure your involvement doesn’t interfere with your primary practice responsibilities.
It’s important to recognize that not all “passive” income is truly hands-off. For example, managing tenants as a landlord can be time-consuming,
while investing in private businesses may require oversight or involvement. The key is to choose strategies that match both your financial goals and
the amount of time you’re willing to commit.
When approached thoughtfully, passive income can provide greater financial security, helping you plan
for retirement, cover unexpected expenses, or free up resources to reinvest in other opportunities. By building additional streams of income that
don’t rely on direct patient care, you can create a stronger, more resilient financial foundation for your future.
Navigating tax considerations
As you diversify your income, keep in mind that not all earnings are taxed the same. Active business income, like consulting or contractual work, is
treated differently from passive investment income, and both can have unique implications when earned through a corporation. With the right planning,
your corporation can support retirement, reinvestment, and risk management, but the details matter. Staying organized and working with a professional
tax advisor will help ensure your income streams are efficient, compliant, and working for you.
Ready to expand your opportunities?
Broadening your income beyond your practice can bring some real benefits: stronger finances, work that keeps you engaged, and exciting new
opportunities. It’s wise to seek professional guidance early on to help you avoid common missteps and ensure you’re protected both legally and financially, so you can move forward feeling confident about
your choices. When you approach it thoughtfully, having multiple incomes sources can provide greater financial flexibility and the freedom to shape
your career — and your future — the way you want.
We’re here to help
Ready to take the next step?
RBC Healthcare Specialists can
help you turn your ideas into a clear financial plan to achieve your goals.
professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up to date, but we do not guarantee its accuracy, and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgement of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions,
information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
