Is Being a 1099 CRNA Actually Worth It?

I used to work for one of the big-box anesthesia companies. I signed up to work there right out of school. To be honest, they wooed me by being the highest paid in the market (even though it was not significantly more than their competitors). But the main selling point for me was that they paid a stipend to student registered nurse anesthetists (SRNAs) while they were still in school. And as a broke SRNA, that money was the difference between survival and drowning. Looking back now, that money could have easily been earned in a couple weeks of working 1099.

While I always knew I would eventually go 1099, I worked alongside a lot of CRNAs who dreamed of making the switch but could never quite get themselves to do it. They had numerous complaints about the company and/or the W2 lifestyle. They knew that 1099 solved 99% of their problems — but they were too scared to make the jump. They were trapped in the perceived comforts of a W2 role. Healthcare benefits that were already provided, a 401k match that may or may not be that competitive, a secure schedule, a dedicated team to help with your credentialing, a familiar workplace and coworkers, and many many more of such comforts.

When asked why they stayed, their reservations varied. The most common were: "My family and I need the benefits" and "It's just too much of a hassle to go 1099." These are truly valid concerns, and I hope that through this site I can break down both the thought process and the solutions in a way that makes those concerns no longer feel like barriers.

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Occasionally, though, there was a third camp. Those who swore that the 1099 role was equivalent to — or even worse than — a W2. Their argument was that people drawn to the appeal of 1099 didn't fully understand the true cost of going solo. They argued that once you factored in everything their permanent job provided, the math essentially washed out. They made some fair points though. The truth is that most people don't consider fringe benefits like 401k matches, annual bonuses, CME contributions, and things of that nature when calculating the benefits of 1099 versus W2 roles.

That's why I'm choosing to start The 1099 CRNA Guide at the most logical place: answering the question — Is going 1099 actually worth it?

The common advice in CRNA circles is to make sure your 1099 rate, for whatever role you get, is at least one-third higher than your W2 rate to account for the loss of benefits. So if you earn $100/hr as a W2 CRNA, the thinking goes that you need at least $133/hr for it to be worth it. I find that too simplistic for most type-A people — like, you know, the kind of person who decides to become a CRNA. The only truly objective way to answer this question is with numbers. You have to factor in every benefit your W2 job provides and compare it against what those same benefits actually cost when you pay for them yourself. And you have to do it for yourself because no two jobs are the same, no two work environments are the same, and no two families needs are the same.

Here are the benefits that a w2 job offers you.

Each of these are weighed differently from w2 job to 1099 job as some 1099 jobs offer benefits (like Malpractice insurance) that you would not initially have guessed. For these reasons, they each need to be weighed carefully and individually. I would love to break them all down here but then this post would become too lengthy. Hence, in future posts I will help you break down how to factor each of these benefits into your calculations when deciding whether going 1099 is worth it for you or not.