Economic analysis of the military health professions scholarship program for neurosurgeons

Brian T. Ragel, Paul Klimo, Gerald A. Grant, Derek A. Taggard, David Nute, Randall R. McCafferty, Richard G. Ellenbogen

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Background: The 4-year military Health Professions Scholarship Program (HPSP) provides funds for medical school tuition, books, and a monthly stipend in exchange for a 4-year military commitment (to receive all physician bonuses, an additional 3 months must be served). Objective: To analyze the economics of the HPSP for students with an interest in neurosurgery by comparing medical school debt and salaries of military, academic, and private practice neurosurgeons. Methods: Salary and medical school debt values from the American Association of Medical Colleges, salary data from the Medical Group Management Association, and 2009 military pay tables were obtained. Annual cash flow diagrams were created to encompass 14.25 years that spanned 4 years (medical school), 6 years (neurosurgical residency), and the first 4.25 years of practice for military, academic, and private practice neurosurgeons. A present value economic model was applied. Results: Mean medical school loan debt was $154 607. Mean military (adjusted for tax-free portions), academic, and private practice salaries were $160 318, $451 068, and $721 458, respectively. After 14.25 years, the cumulative present value cash flow for military, academic, and private practice neurosurgeons was $1 193 323, $2 372 582, and $3 639 276, respectively. After 14.25 years, surgeons with medical student loans still owed $208 761. Conclusion: The difference in cumulative annual present value cash flow between military and academic and between military and private practice neurosurgeons was $1 179 259 and $2 445 953, respectively. The military neurosurgeon will have little to no medical school debt, whereas the calculated medical school debt of a nonmilitary surgeon was approximately $208 000.

Original languageEnglish (US)
Pages (from-to)525-532
Number of pages8
JournalNeurosurgery
Volume69
Issue number3
DOIs
StatePublished - Sep 1 2011

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Health Occupations
Medical Schools
Private Practice
Economics
Salaries and Fringe Benefits
Economic Models
Training Support
Neurosurgery
American Medical Association
Financial Management
Internship and Residency
Neurosurgeons
Medical Students
Students
Physicians

All Science Journal Classification (ASJC) codes

  • Surgery
  • Clinical Neurology

Cite this

Ragel, B. T., Klimo, P., Grant, G. A., Taggard, D. A., Nute, D., McCafferty, R. R., & Ellenbogen, R. G. (2011). Economic analysis of the military health professions scholarship program for neurosurgeons. Neurosurgery, 69(3), 525-532. https://doi.org/10.1227/NEU.0b013e3182181ec2

Economic analysis of the military health professions scholarship program for neurosurgeons. / Ragel, Brian T.; Klimo, Paul; Grant, Gerald A.; Taggard, Derek A.; Nute, David; McCafferty, Randall R.; Ellenbogen, Richard G.

In: Neurosurgery, Vol. 69, No. 3, 01.09.2011, p. 525-532.

Research output: Contribution to journalArticle

Ragel, BT, Klimo, P, Grant, GA, Taggard, DA, Nute, D, McCafferty, RR & Ellenbogen, RG 2011, 'Economic analysis of the military health professions scholarship program for neurosurgeons', Neurosurgery, vol. 69, no. 3, pp. 525-532. https://doi.org/10.1227/NEU.0b013e3182181ec2
Ragel, Brian T. ; Klimo, Paul ; Grant, Gerald A. ; Taggard, Derek A. ; Nute, David ; McCafferty, Randall R. ; Ellenbogen, Richard G. / Economic analysis of the military health professions scholarship program for neurosurgeons. In: Neurosurgery. 2011 ; Vol. 69, No. 3. pp. 525-532.
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