Financial Considerations to Make When Setting Up a Private Medical Practice

Friday, October 11, 2019, 6:00 PM | Leave Comment

Many doctors dream of setting up their own private practice one day. While they are paid a fair salary when working for medical institutions, the cost of running their own business can far exceed this.

If you are thinking of setting up your own practice, there are some careful financial considerations to make. Here are some of the things you should be thinking about.

  • Insurance

    As a professional in the medical industry, you might leave yourself open to the possibility of getting sued. While accidents do sometimes happen, there are often people who decide to sue simply because they are not satisfied with their level of care. You need to make sure that your fledgling practice is protected so this cannot happen to you.

    To do so, all you need is a comprehensive selection of policies including indemnity insurance. This is an incredibly important policy as it protects you in the event that someone alleges that your services led to further injury of the patient. Policies like those of Incision Indemnity are designed to help keep your practice safe. With 24/7 legal advice and more benefits, they can help you get covered.

    Find out more about their services here:

  • The Right Staff

    When you first set up practice, you need to select your staff incredibly carefully. Unlike in many other businesses, everyone within a medical practice has a precise role with not a lot of room for overlap. For example, if you are the practice’s GP, it is unlikely that you will be scheduling in appointments. Likewise, your receptionist is probably not going to be able to duck into an office to give someone a check-up.

    You need to make sure that you are hiring the best person for each role. The keystone role by far is going to be the practice manager. If you can find an experienced practice manager who is willing to take on the challenge of managing your new practice, you are going to find other issues much easier to deal with. It might be worth creating an attractive employment package here so you can get the person you need and be able to keep them for as long as possible.

  • Office Space and Equipment

    You are going to need to make sure that you have the funds needed to rent space in a good location. Finding a good space for your practice is going to be one of the biggest challenges you face. While you need a good location geographically, it also needs to have all the space you need for storage, a waiting room, the practice rooms, and more.

    If you have equipment onsite then this cost only goes up. For example, if you are going to start including diagnostic equipment then the costs are going to shoot up. However, if you can afford to offer this equipment then you might find that you are able to offer treatments that some of your competitors do not. Trying to find the right balance between services and finances is going to be an important one which you need to master early on.

Setting up your own medical practice is exciting but it can be filled with dangers if you do not manage your finances properly from the start. Take control of your finances now and make sure you have a proper business plan before you start spending. This is going to be the best and safest way for you to make sure that you don’t go off track. With a lot of hard work, your practice will be a success.

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