29 Apr 8 Considerations For Opening A Medical Practice In 2019
The good news — 2019 offers big things for ambitious practice owners in the making.
The latest tech trends and innovative medical treatments can help you to pave the way for better patient care and innovative practice management.
As we all know, there’s more than medical expertise needed for starting a medical practice from the ground up.
There’s a plethora of business know-how necessary to hit the ground running in 2019 and set up your practice for success.
Leveraging key insights, we’ve compiled eight considerations for opening a medical practice. Are you ready?
What to consider when you’re starting a medical practice from the ground up
BUILDING A PROFITABLE BUSINESS PLAN
Without a business plan, doctors may spend most of their time “fighting fires”, such as staff issues, unexpected expenses and changes in health policy.
Executing hands-on workflows with a well-prepared business plan can prevent fires in the first place.
Building a realistic and profitable business plan is the essential first step for any medical practice in the making.
With a plan at hand, your practice is more equipped for obtaining
financing from banks and investors, communicating important business
information to key staff and stakeholders and delivering long-term goals
for growth.
Your business plan also must include essential information on the vision of your practice, your angle for providing a unique service in a competitive market, and strategy around the structure, service range, staffing, premises and processes.
Making these difficult decisions now will help you to motivate your staff with the same vision in mind and avoid any future disputes around growth trajectory.
FINANCING YOUR SMALL BUSINESS
The cost of starting a practice varies depending on the location, and size.
With a profitable business plan in place, prospecting potential investors and banks for financing becomes the next step.
Compared to purchasing an existing practice, starting a medical practice from the ground up is far more affordable.
Whether it’s a lump sum loan or a monthly loan repayment with a medical finance provider, your capital needs to cover the initial cost of premises, technology, equipment and staff onboarding.
You know that relationship managers often change, therefore if you are looking to arrange to finance your business plan is paramount.
Word of warning – the lender will use your business plan and the way it is compiled to form an opinion on your business acumen, and your ability to repay the loan successfully.
INVESTING IN INSURANCE AND CLEAR POLICIES
Whatever your specialisation or the vision for your practice’s growth, investing in medical indemnity insurance is essential in your checklist for setting up a medical practice.
While compliance policies and established procedures for patient care and staff training will minimise some risk, insurance provides the necessary protection.
It can be more costly to do damage control, rather than implement clear policies and best practices first.
Anything from issues with faulty equipment, EMR systems insufficiently protected, staff behaviour or quality of facilities can lead to liability. Ultimately, establishing clear policies and procedures are about equipping practices to fulfil their duty of care.
A lack of practice-wide policy around practitioner and staff behaviour can open up your practice to liability should something arise – this is not necessary because they are very easy to implement.
- Before your practice opens its doors for the first time, invest your time establishing policies and procedures for:
Appropriate staff behaviour - Safe handling of patient information
- Effective management of administration and fee management
- Maintenance of equipment and facilities’
HIRING A RELIABLE PRACTICE MANAGER
The evolving role of the practice manager means they’re a core member of your medical practice, no matter the size.
Though they often have little patient contact, their role covers all aspects of product management, business, finance, HR and marketing.
In particular, they become invaluable if you have multiple specialists providing different services all in the same premises.
A great practice manager means – you can see more patients, provide exceptional service during the onboarding of new patients because it is fast and effective, billing is managed professionally, and advertising is smart, timely and cost effective.
BUILDING A SUPPORT TEAM
An effective hiring strategy has the long game in mind. Your patients form their opinion not just on you but the team that you surround yourself to run the practice.
Your employee strategy must take into account:
- Your vision for the practice
- Your practice’s growth trajectory
- Reasonable constraints of your premises
- The work/life goals of your healthcare professionals in your specialisation
- Healthcare workforce trends
Ultimately, your employees are there to elevate the experience for every patient — whether they’re a specialist or support staff.
Establishing clear procedures on hiring, onboarding and ongoing training will help you ensure all of your team are equipped with the tools and know how to succeed.
STRATEGIC LOCATION NEEDS
Once the challenges of researching and drafting a detailed business plan, obtaining financing and investing in new equipment are complete — it is time to finalise the selection of a suitable location.
Depending on the choices you made in your business plan, e.g. rent or purchase your new practice, keep in mind:
- A selection of venues to buy coffee and a tasty lunch
- Accessibility to buses and trains
- Proximity to local car parks or ample street side parking
- Ramp or lifts access for patients in wheelchairs, elderly patients and patients with prams and strollers — stairs only
facilities may fail to cater to all of your patients
- Regulations, allowing you to use premises for commercial purposes, in particular, medical practice
- Facilities, such as bathrooms, for patients
- Demographics of local areas — for example, obstetrics clinics may find more value establishing premises in areas with more young families rather than retirees.
GETTING THE RIGHT EQUIPMENT
The right technology at your fingertips is beneficial for your whole team.
With effective IT infrastructure in place, employees will: – efficiently manage patient information, organise appointments and follow-ups, ensure consistent fee management, and cash flow.
Now, with increased access to relevant health information, patients are equipped with the know how to take greater control of their health — greater awareness leads to better interaction.
Ultimately, excellent patient care with the help of supportive technology is a shared educational process.
PROMOTION
In the first year of your practice, it’s crucial to plan and execute a thorough marketing strategy that aims to build up a strong referral network and establish a trustworthy online presence — through a website and various social channels.
Making sure your website is professional looking, relates to your target client base, and is clear about what your services and specialisations.
Of course, patients have to find your website first – a professional digital marketing firm should be engaged to make sure clients can find you either through an organic search or via online advertising.
OVER TO YOU
With so many opportunities on the horizon, 2019 could be your year for opening a medical practice. How are you preparing for your 2019 launch?
To help you stay across all the nitty gritty of business finance call us and tell us what you need, how much you need and when you need it and we will do the rest.
We can also assist you in preparing your business plan!