Have you thought about starting a medical practice?
Sure, the thought of having to spend all that time in medical school and doing the university clinical aptitude test is excruciating but if you get to establish your own medical practice, it wouldn’t hurt, right?
If you have the ability to pursue and be a full-time medical practitioner, it will be worthwhile.
If you are a doctor, I am sure the thought of opening your own medical practice has crossed your mind. However, it is not that easy. You need to have a clear plan that will help you manage your new career. You also may need to apply for medical practice loans to help you. In this article, we are going to look at some of the things that you need to do if you are heading in that direction.
Why Should You Open a Medical Practice?
Studies show that the healthcare industry will reach a net worth of $5.5 billion by 2025. This is expected to grow as more and more people choose careers in medicine. However, it takes heart to start your medical practice. The question that lingers on most people’s minds is why you should go through the hassle of opening a practice when you can quickly get a well-paying job?
Once you start your medical practice, it means that you will enlarge the industry and the profits will be widespread. Moreover, this is going to be an opportunity for you to spread healthcare services to marginalized areas. Also, who would not want to be their own boss?
Guide to Starting Your Medical Practice
Once your mind is made up that this is what you want to do, then all you need is to come up with a plan. But there is no universal plan for beginning a medical practice. Unless you were set on finding a medical practice for sale in Washington DC and forgoing starting your own, you’ll need to build a practice from the ground up.
In some cases, it might be a good idea to hire a consultant who will guide you through the entire process. You don’t have to do this on your own, especially if you don’t know the waters you are treading in. However, here are a few guidelines that are bound to help you build your business from the ground up.
Step 1
Fund Your Medical Practice
Starting your own medical practice is a daunting process. Ask any entrepreneur; they will speak about the struggles of having to fund your own business. This can obviously be true when you have medical school debt. Therefore, you should consider looking for outside funds that will help you with the start-up costs.
Then the big question is: where will you get this capital? Let’s be honest; you will need a loan to be able to open your own business. It might be the only option you have unless you are wealthy. The startup costs will determine the loan amount. Some of these costs include:
- Equipment such as surgical headlights
- Accountant fees
- Attorney fees
- Real estate
- Disposable items
How Can You Convince a Bank to Give You a Loan?
The best way to convince a bank to give you a loan is by formulating a pro forma. A pro forma can be defined as a business plan that has your projection of revenue and debts. Bankers can quickly identify which predictions are worthwhile and which ones are not. Therefore, it is up to you to back up everything with realistic numbers. For instance, a strong pro forma will project at least three years into the practice’s future. If you’re looking for a quick and easy solution, getting a physician loan from online lenders such as Kapitus is your best bet, since you can obtain the funding you need in as little as 3 days!
Step 2
Obtain Your Credentials
One of the most important things to accomplish is obtaining your credentials, which may take several months since insurers will have to probe into your medical life. This is important because you will need to determine if you are going to accept government or private insurance policies from your patients. Getting your credentials is crucial. It will protect you in case a patient tries to sue you, helping you to protect your assets.
Step 3
Draft a Clear Legal Structure
A legal structure will be your guideline on how you are going to pay taxes and what you can do in cases where you are sued. It is best to hire a healthcare attorney to help you draft a legal structure. They will advise you about everything you will need to do according to the laws of your county and state.
Step 4
Get Licensed
As a law-abiding citizen, it is crucial to get a license. Plus, you know you can’t start running your practice unless you get the proper licenses.
Step 5
Purchase Equipment
Once you have accomplished the correct legal requirements, it is time to get your new business up and running with equipment and staff. If you have the proper plan and do ample research, then this process will be natural.
