Keyword

Financial literacy; medical practitioners; South Africa

Abstract

Background: Strong financial literacy skills can significantly enhance the success of any business, including medical practices, while also mitigating the stress associated with ignorance and poor financial decisions. Despite this importance, medical schools often provide minimal relevant financial training, resulting in many healthcare practitioners lacking essential financial knowledge. This gap in education can leave medical professionals financially illiterate and ill-prepared to manage the business aspects of their practices effectively.
Purpose: Given our concerns about the perceptions of South African healthcare professionals regarding their financial literacy, our study aimed to investigate their level of financial mastery. We sought to understand how these professionals perceive their financial knowledge and how it impacts their practice.
Methodology: To gain insights into the financial realities faced by medical practitioners, we conducted qualitative semi-structured interviews with 15 healthcare professionals who were conveniently selected from Johannesburg, South Africa. The interviews were carefully analyzed and manually coded to identify recurring themes. These themes were then connected to existing research and aligned with the study’s objectives.
Findings: The analysis of the interview data revealed three prominent themes: financial ignorance, knowledge gaps, and the need for comprehensive knowledge enhancement. Participants indicated that while they had received some financial and business training during their undergraduate education, they found this training neither valuable nor adequate for managing a private practice effectively. Concerns were specifically highlighted regarding the disproportionate emphasis on public sector operations rather than private practice. Subthemes included various concerns such as marketing strategies, legal issues, accounting practices, people management, tax return submissions, financial procurement, and overall management challenges.
Practical Implications and Conclusions: The study found that financial illiteracy is not only time-consuming but also contributes to financial insecurity, which can impact mental health and potentially affect the quality of patient care. These findings have both theoretical and practical implications. Theoretically, they contribute to a better understanding of the management challenges faced by private medical practitioners. Practically, they offer empirical insights into the need for enhanced financial education and support for healthcare professionals.
 


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