Many reasons are driving more physicians to set up their own private practice. Maybe you want more independence from a hospital system, or maybe you want to do something about the physician shortage— whatever the reason— you’re going to need a variety of resources to help you open and run a successful practice.
You must first decide which type of practice you would like to open. This could be a solo, group, or hospital practice. Next you’ll write a pro forma (business plan) to help you plan out your new business venture and obtain financing. Opening a medical practice (and any type of business) is expensive, so it’s important to have a good idea of what you’ll need before writing your business plan.
Lastly, you’ll need an actual building to house your practice— which calls for even more money. Successful medical practices are located in a prime area that’s easy to access. A practice located close to another one may prove advantageous due to the shortage of doctors. An agent in real estate can assist you in finding the right location for your business.
#1: Financial Resources
Finance is the most critical resource required to establish a successful medical practice. On average, the cost of financing a medical practice is about $20,000 Cost of opening a medical office ranges anywhere from $70,000 to $100,000— and this can differ based on the type of practice you open. A physician can finance their practice through the well-known fact physicians are good at making money. However, many physicians need external financing.
Medical practices are small businesses and doctors can get a loan from the Small Business Association to help them open their practice. You can get loans for medical practices through third-party lenders and banks.
#2: Software and Equipment Resources
A successful medical practice can’t be run without basic medical equipment, nor can it be successful without the latest medical software. Defibrillators, EKG/ECG machine, EKG/ECG machines and sterilizers are all basic equipment. Don’t forget that you’re also going to need basic items for your office such as chairs, desks, and tables. While medical equipment and software are needed, you can’t forget about furnishing your practice for your patients.
Medical practices require advanced software in order to manage their businesses efficiently. Below are some examples. Software solutions that deliver high performance
For the healthcare sector.
Electronic Health Record System (EHR)
EHR systems keep track of patient records including prescriptions and lab results, as well as information received from other doctors.
Transcription and medical billing software
Many practice owners prefer to outsource medical billing to an outside company as it is time-consuming. Billing services is how you ensure that you get paid for your services, so you’ll need the right software (or company) to handle this. Outsourcing medical transcription can be used, but they also can be performed in-house with high-performance software.
Software for Practice Management
This software is essential for all medical practice types, no matter how large or small. The practice management software keeps records of every aspect of the practice’s operations. It can even be used in conjunction with the above software.
#3: Hiring Resource
You’re also going to need skilled physicians to help you run your practice. Current physician shortage is not
only means that doctor’s offices are filling up with patients— it also means that physicians who have opened up their own practice may be having a hard time finding qualified staff to fill their vacant positions. Fortunately, medical school enrollment is going up, but this doesn’t always mean that all of the enrollees will finish and graduate from medical school.
It also doesn’t mean that all of the graduates are going to be able to find vacant positions— at least in their specialization or in a city or state nearby. Practice Match, however, is an option. Only for doctors. Practice Match can be used by future doctors to locate jobs.
You can also speak to another physician with experience in starting a private medical practice. A business owner from the same industry can sometimes give you the best advice about starting your business.