Research Mentor Name

Manoj Kulchania

Research Mentor Email Address

manoj.kulchania@wayne.edu

Institution / Department

Wayne State University Mike Ilitch School of Business

Document Type

Research Abstract

Research Type

businessinmedicine

Graduate Level Research

yes

Type of Post-Bachelor Degree

Master of Business Administration

Abstract

Title:

Economic Perspectives on Medical Training: A Specialty-Level Break-Even Analysis for Wayne Trained Physicians

Michael Niculcea, Joseph Kunnappilly, Isaak Miller, Connor Genschaw, Biola Makinde-Odusola

Background:

U.S. medical students graduate with high educational debt, yet financial literacy remains overlooked in medical school curricula. Trainees enter residency with a limited understanding of how specialty and loan repayment strategies affect long-term finances. Break-even analysis, which identifies when total revenue exactly offsets total costs, can help students at Wayne State University School of Medicine (WSUSOM) better visualize the factors shaping their financial futures.

Methods:

This analysis assumes 4 years of medical school financed entirely through loans at an 8% interest rate, with no debt accrued during or after residency. Costs were based on WSUSOM estimates for school and living expenses, with separate calculations for in-state (IS) and out-of-state (OOS) tuition. Resident/attending salaries and specialty training lengths were sourced from AAMC data. Break-even periods for IS and OOS costs of 24 specialties were calculated using repayment rates of 15%, 25% and 50% of yearly salary.

Results:

The total 4-year attendance cost was calculated at $296,904.00 IS and $409,900.00 OS. Break-even results indicate that repayment rate plays a larger role in determining payback period than tuition category or specialty. For some specialties, low repayment percentages allowed interest to accrue faster than payments, preventing payback altogether.

Conclusion:

This break-even analysis helps WSUSOM students understand how training length, repayment approaches, and chosen specialty interact to influence long-term financial planning.

Disciplines

Finance and Financial Management | Medicine and Health Sciences

Comments

Thank you to our faculty mentor, Dr. Manoj Kulchania, the Mike Ilitch School of Business, and Wayne State University School of Medicine for their support in developing this project.

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