Starting a New Medical Practice – Simple Guide. There’s a significant shift happening in the medical industry. Private practices are getting bought out by hospitals and other corporations like private equity firms. About 70% of doctors are now employed by hospitals.
While many look at that and say it’s a bad time to start a new medical practice, it’s actually the opposite.
Patients still want to work with a private independent physician. They don’t want their medical decisions to be influenced by a company’s profit statement.
You can start a new medical practice that bucks the trend. You have to build the right business foundation for your medical practice first.
That’s why you need to keep reading. Discover the essential steps to follow to build a new medical practice.
Table of Contents
1. Write a Medical Practice Business Plan
A medical business plan establishes the vision and roadmap for the new medical practice. You’ll address different aspects of the business.
The brand, management team, operations plan, competitive and economic environments get addressed in the plan.
Be sure to go over the type of medical practice you have (specialist vs. generalist), the
You can see how much it takes to start the medical practice and operate it each month. You’ll look at your pricing model and determine how much you need to earn each month to be profitable
You should address how you plan to finance the medical practice at this stage. Your options are to seek outside investors, partner with other doctors, get a small business loan, or self-fund the practice.
There are pros and cons to each. For instance, with self-funding, you retain total control of the medical practice.
At the same time, you’re assuming all of the risks. You could lose your entire investment if the medical practice fails.
2. Get a Team of Advisors
The best medical care happens when a team of practitioners uses their areas of expertise to treat a patient.
You should take the team approach to your new medical establishment. Your expertise is in medicine. It’s not in insurance billing, marketing, accounting, tax compliance, or business law.
Get these experts on your team as soon as possible. There are decisions you need to make as you set up the business that has legal and tax consequences.
Making a simple mistake could have a significant impact on your practice. You don’t need to hire them full-time as employees. Work with independent practitioners like yourself who understand the challenges of running a small business.
3. Register the Medical Practice
You will need to register the medical practice with the state and local authorities. This usually involves registering with the secretary of state’s office and local tax entities.
You may have an attorney handle this part of the process for you. If you do this yourself, you’ll need to choose your business entity (LLC, S-Corp, etc.). You should lean on legal expertise before you decide.
4. Find a Location
There are a number of considerations when you choose your location. How many rooms will you need? How much is the lease? Is the location accessible?
Make a list of requirements, such as neighborhood, parking, cost, and square footage. You can work with a commercial real estate agent to help you find a place and negotiate the lease.
5. Contract With Insurance Companies
It’s going to take a while to get set up with insurance providers. Plan for the process to take several months.
It’s critical to start this process early so you can accept insurance patients as quickly as possible. Giving yourself enough lead time ensures that you get the best contracts.
Some medical providers don’t give themselves enough time for insurance contracts, so they accept bad contracts out of desperation.
6. Set Up the Office
You have your location, now it’s time to make it a proper medical office. Get the equipment and supplies you’ll need to do your job.
Set up phone and cable lines, vendor contracts, and purchase furniture.
This is also the time to create workflows for your private medical practice. Create workflows for billing, ordering, and patient management.
Get NDIS software that manages patient case records. That improves patient satisfaction and helps you maintain records.
7. Marketing the Medical Practice
In an ideal world, your marketing efforts deliver high-quality medical leads every day. It takes time to market your practice.
It also takes time to develop momentum.
Use a combination of marketing strategies such as SEO, social media, and event marketing. You can participate in community events to grow your brand locally.
8. Start a Referral Program
If you want to get the attention of new patients, you have to think like they do. When someone is looking for a new medical provider, they usually start by asking people they know for recommendations.
They’ll get a few names and they’ll do their research online. New patients read reviews online.
They’ll look at the websites of a few providers to see how easy it is to work with them. Online scheduling, downloadable forms, and new patient information must be on your website.
A referral program helps your new medical clinic reach new patients at every step of this process. Create a program that encourages referrals and online reviews.
Start Your New Medical Practice the Right Way
The healthcare industry continues to change and evolve. While there’s a lot of consolidation in the medical field, patients still want to have an independent practitioner.
It is possible to thrive in private medical practice. You have to work a little harder on the business side, but with the tips presented in this article, you’ll be able to handle it with ease.
You’ll have a firm foundation on which to grow your new medical practice. Visit the home page of this site for the latest business news and advice.