Why You Should Open Your Own Medical Practice & What To Know Beforehand
/Who says physicians can't also be business owners? In fact, many physicians prefer to have some level of independence when it comes to practicing medicine, even if they don’t want the responsibility of owning and operating their own practice. For example, a group of physicians can open a group practice and they’ll share the workload, plus the burdens and benefits that come with owning a medical practice.
On the other hand, physicians with more of an entrepreneurial spirit may want to open a solo practice. They’re okay with taking on all the risks associated with opening a business and they’re comfortable working on both the medical and business sides all because they desire to have full control over how their practice operates. If this sounds like you, then you should consider opening your own medical practice.
Obtain Funding
As with starting any type of business, the first thing you must do is obtain funding. You do this by creating a business plan. Not only does this outline everything you’ll need for your business, how you plan to run it, and your future projections— it also details how much everything will cost and how much of a profit you plan to make. This is the information that entices financers to invest in your business.
A business plan is usually divided into 10 parts, and they are:
Executive summary
Business description
Market analysis
Sales and marketing plan
Management and organization description
Products and services description
Competitive analysis
Operating plan
Financial projection and needs
Exhibits and appendices
Physicians planning to open a medical practice don’t always have to write out a full-blown business plan, but instead may write a pro forma. This is a lighter version of a business plan, highlighting financial projections and needs.
Find A Location
Next is finding a good location for your practice. Ideally, you’d want to be located in an area that doesn’t have many options for medical care because this will ensure that you’ll get patients almost right away. This is a good route to take if you practice family medicine. On the other hand, if you’re a specialist (e.g., dermatologist, neurologist, psychiatrist, etc.) then it’s okay to locate your practice within an area that has a high concentration of medical practices— as long as there isn’t a high concentration in your specialty.
You’ll also want your practice to be located where it can easily be accessed by your patients, so along a busy highway may not be the best option.
Take Care Of All The Legal Aspects
All businesses have to be registered with their local and state governments, and sometimes with the federal government. You’ll also have to obtain certain licenses as a physician operating a medical practice. Also, don’t forget that you’ll need business insurance just as other types of businesses are required to have. Medical practices will need medical malpractice insurance and workers’ compensation insurance, but other common types of business insurance include:
● General liability insurance
● Commercial property insurance
● Business income insurance
Equip & Furnish Your Practice
You’ll need basic medical equipment and furniture, such as exam tables, scales, basic diagnostic equipment, wheelchairs, and AED (automated external defibrillator) machines. You’ll also need basic waiting room and exam room furniture, along with desks and chairs for your employees. It’s also not a bad idea to decorate your office with paintings and other types of artwork to give it a more welcoming feel. Other equipment you’ll need to have include:
● Credit card processors
● Electronic health record system
● Medical transcription software
● Practice management systems
Different practices will need to be equipped in different ways. While every medical practice will need the basics as mentioned before. if you specialize in an area, you might also need tools and equipment that’s more specific to your patient’s needs. As you’d expect, this means maintaining a relationship with vendors.
For example, if your medical practice caters to patients who have undergone bowel removal surgery, it makes sense to contact nearby ostomy supply companies so you can help patients recover with medical support and at home. Other specializations such as mental health, physical therapy, and dermatology would need different supplies. Make sure you do an inventory of what you need before you start practising.
Staff Your Practice
Finally, you can’t run your entire medical practice on your own, so you’ll need to hire other healthcare professionals. This includes people like physician assistants (PAs), nurse practitioners (NPs), and registered nurses (RNs). You may also want to consider hiring specialists such as nephrologists, radiologists, rheumatologists, urologists, and even surgeons. Post your open positions on job sites for physicians to ensure that your job ads are seen.
Also, don’t forget to hire lab technicians, receptionists, and a secretary. Although all of these aren’t considered to be healthcare positions, they’re necessary for your medical practice.
Healthcare is something that is always going to be needed no matter where you go, so you already know that there’s a market for healthcare. Again, you don’t want to open a practice where there’s already a high concentration of medical practices unless you’re specializing in something that’s not offered in that area. With careful planning and patience, you’ll be able to open and run a successful medical practice.
