After finishing medical school or practicing medicine for a number of years, many doctors may want to take a more entrepreneurial approach to their careers and start up their own medical practice. It is a declining enterprise though; less than half of doctors run their own practice.
There are plenty of benefits to owning a private medical practice. It allows a doctor to run their office in a way that fits their beliefs and allows them to change policies and processes, and give patients care without getting approval and permission from managers.
However, there are many things that need to be taken into consideration when starting up your own medical practice, and that is what we are going to look at here.
Finance
Starting up your own medical practice is not going to be cheap.
On average, a medical practice requires $70,000 to $100,000 to get started. This is because a lot of resources are needed, from the premises to staff, to a vaccine fridge and waiting room furniture. You would likely need some sort of assistance to start-up, in the form of a loan or business financing from a bank or alternative lender.
Remember, most doctors will have graduated from medical school with significant levels of student debt, which can impact on the amount of money that they can borrow. Of course, there are ways of cutting costs – buying second-hand office and diagnostic equipment and upgrading as and when you can afford it can make for huge savings. Don’t forget that you will need a malpractice insurance cover too.
Business plan
You simply cannot expect to have a successful business without a business plan. This allows you to establish your objectives and goals, mission statement, and values, as well as lay out your financial model and budget plan. This plan should be your pathway for the next few months as you move towards opening up your practice to patients.
Personal responsibility
A medical practice is a business like no other. Your business can be the difference between someone living or dying, and that means that was an owner, you must be prepared to hold a great deal of personal responsibility and dedication. You need to be up to date with not just your own medical knowledge, but the legislation and laws around health care and insurance. You are not just a medical professional, but a business owner as well, and juggling the two can be difficult.
Any would-be entrepreneur needs to weigh the pros and cons of starting their own business.
As the owner of a medical practice, you would have the autonomy to provide treatment to patients in ways you believe are best. You can also set your own guidelines without waiting for approval from someone above. However, you are also responsible for .the inner working of the business, including admin and finance.
It can be overwhelming, but it can also be more than worth the risk. Make sure you get advice from a qualified business advisor or consultant before taking the plunge.
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