6 Tips For Starting A Private Medical Practice
In the past few years, the number of physicians starting private medical practices has dwindled with more physicians working in larger institutions. However, with more people getting access to healthcare than ever, those patients want to feel like they have a personal relationship with their doctors, especially when it comes to specialty care. Starting a private medical practice ensures that you can offer that experience to patients in your area.
Here are six tips to get your practice off the ground and keep it running.
1. Your Name Matters
While you might think to just name your practice after yourself, sometimes a practice name can help inform patients and put them at ease. In the modern era, you also need to think about how your name looks in a URL or how easy it is to find online. Choosing a name that includes your region can help visitors to find you on search engines.
Make sure that the name that you’re thinking of is available online. Having a website is critical to building credibility with your audience.
Don’t try to come up with something cool or hip. Use a simple name that invokes your expertise and the trust you’re aiming to build.
2. Don’t Forget to Register
Filing your taxes isn’t the first thing that you think of when you’re opening a business. However, it’s vital to keeping your doors open that you file taxes correctly. Choosing the wrong type of corporation or company type can lead to tax bills larger than your practice can handle.
Most small businesses do not need to be set up as C corporations. Doing so, results in profits that you or your co-owners receive are going to be taxed twice.
In many cases, it’s better to set up your practice as an LLC or a PLLC. An LLC allows you to have flexible accounting and help to share profits more freely. PLLCs separate any liability issues from the company and individuals.
This is a concern not just for paying taxes but for how you manage your finances (LINK: https://www.doctors-management.com/services/accounting-financial-planning/accounting-services/) for years to come.
3. Location Matters
While you want to keep your commute as short as possible, you need to consider where your practice is needed. If you’re offering services that are targeted toward older folks, you want to be centrally located near an elderly community. If you’re opening a pediatric practice, you don’t want to be near a community of retirees.
A feasibility study can help you determine the ideal location for your practice. Then, you can work with a commercial realtor to find a facility that location. Even though the work that you do is what matters the most, your location is going to set the tone for the success of your office.
4. Set a Budget
If you want your private practice to succeed, you need to set a budget to buy the latest equipment while keeping the lights on.
You’ll need to buy computers and other administrative equipment. Each one of these computers is going to need to have all of the latest software suites for working in the medical industry. You’ll need robust patient relationship management software, insurance-related programs, and invoicing software.
On top of that, you need medical equipment and supplies. Make sure to budget support staff to keep things moving for all of your physicians on staff.
There should also be a portion of the budget allotted to promotion and marketing. You’ll need a website, digital advertising, and even print promotional materials. Pamphlets that lay out the kind of work you do can be distributed by other professionals who work with your target market.
5. Make Sure To Protect Your Assets
Malpractice insurance is one of the largest line item expenses that every physician and professional has to pay. While it can be a huge out-of-pocket cost, it’s important to protect yourself and your practice. If you want to grow, you can’t be held down by a major malpractice suit because of one of the members of your staff.
Losing your business because of a frivolous lawsuit or a mistake is a tough loss to recover from. Without malpractice insurance, commercial property, and professional liability insurance, you leave your business at risk.
Make sure that every year you’re taking a hard look at the numbers your business generates. You should be ensuring that you’re growing year after year and putting away money in a fund to help your business expand.
6. Put Together a Growth Plan
Ultimately, you want your business to grow over time. Unless you have a private practice in a small rural area where there simply aren’t any doctors, you’re going to face competition. The way to prepare against that is to have a talented staff that works hard to earn the trust of your patients.
Figure out how to create competitive compensation packages to retain employees. Look at what other offices are offering support and medical staff. Make sure you offer something better so that you can be picky with who you add to your staff.
Private practice growth steps can be skipped if you take over for a retiring practitioner. You’ll get their client load, their equipment, and have to do less overall setup. While this will increase your risk, it also increases your exposure and your ability to get more patients.
Starting a Private Practice Is a Worthwhile Risk
While starting a private practice can be stressful at the start, it can be worthwhile and rewarding. Building a practice that delivers patient care the way that you want it to be administered can change lives. While patients might not know how to articulate it, they know how it feels when their doctor and his or her staff truly cares about them.
To understand more about how to protect your practice, check out our latest compliance coverage.