According to Globe Newswire, the private medical practice market size and share reached $820 billion in 2021. At a CAGR of 12.5%, the revenue size of this market will reach $2 trillion by 2028.
Starting a new medical practice can be an excellent way to take medicine practice under your control. Still, the process can be challenging and complicated.
Running a medical business successfully requires a well-organized business plan at the very beginning. If you’re a medical practitioner that’s always wanted to start the best medical clinic, worry no more.
This article provides you with an ultimate guide on how to start your very own private medical practice.
Create a Pro Forma
Usually, a pro forma will serve as a lighter version of your detailed business plan. Your pro forma should include your revenue and debt projections based on reality.
Also, let your pro forma account for your entire medical clinic expenses, projected revenues, and debts. It’s best to consult with a banker to help you differentiate the realistic projections from those that aren’t.
Your pro forma should highlight your three to five-year plan. A well-organized pro forma will come in handy for you when sourcing finances.
Include the costs to set up your private medical practice, lease costs per square foot, and EHR system expenses. You should also have the costs of your medical and office supplies included.
Often, a significant number of medical practitioners own a negative net worth after taking student loans for med school. So it becomes hard for these health professionals to get financed through traditional bank loans.
But, with a well-structured and detailed pro forma, you can be successful. You should submit the pro forma alongside your loan request to your bank’s medical or dental department if one exists.
It’s recommendable to submit these documents to at least five banks. This move will help increase your chances of getting several offers with varying terms and conditions.
Read through and understand each bank’s terms and conditions, then choose what’s best for you.
Purchasing Your Medical and Hiring Staff
After obtaining your finances, you’re ready to begin putting all your ideas into reality. With research, buying your medical and office supplies shouldn’t be difficult.
You’ll need to consider having these specific tools to have the best medical clinic. They include:
- Electronic health record system,
- Practice management system
- Medical billing service
- Patient monitoring systems
You’ll need to find a good office manager even as you assemble your front-office staff members. Ensure you hire a reliable, responsible, and experienced office manager to handle your daily operations.
Prepare to Open and Run
You can prepare to open your new private medical practice in various ways. These can include signing a lease, finding a contractor to remodel your new space, and hiring your private medical practice lawyer.
You can also obtain your business tax ID and buy your liability and medical malpractice coverage. Put in place policies, measures, and compliance documentation.
After you’re done, you can open the doors to your new medical practice and start evaluating your practice performance with time.
Private Medical Practice
Once you’ve established and run your private medical practice, you’ll need to ensure maximum accountability. Hire a consultant accountant with vast experience in tracking medical practices. Your accountant will, from time to time, review your operations and give your detailed reports.
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