Guide To Setting Up A Medical Practice
Qualified medical practitioners often think about starting their own practice at one time or another in their professional career. This is because private practice is more rewarding than working at a public medical facility or a private medical facility. As doctors accumulate more experience in their field, many will open a private medical practice. This is a costly endeavor, so most doctors usually save up for the project for many years. Below are steps to take when planning to set up a medical practice:
1. Find a Suitable Location and Business Premise
Medical practices must be strategically-located to ensure both existing and new patients can easily find the practice. The most accessible business premise with enough space should be considered. You will need a spacious reception area where patients can wait their turn to get assistance. You will also need at least one doctor’s office and examination room. Since you plan on expanding without changing locations, be sure to rent premises that can accommodate at least two doctor’s offices and examination rooms. After negotiating a suitable lease agreement, partitioning the space and furnishing it, you will need to apply for fire and safety inspection.
2. Administrative Setup
Before you can be ready for business, you will need to prepare office policies, fee schedule, build a compensation model and create employment agreements. This is crucial because you want your medical practice to have efficient operations and become sustainable in the long run. Proper administrative setup can help you with this.
3. Invest in Equipment
You will need a number of computers, internet connectivity, printers, scanners, copiers, lab equipment, imaging equipment, office telephone, furniture and fittings among other types of office supplies. In addition to the hardware equipment, you will also need software. This includes; Electronic Health Records Software, Patient Experience Software, Medical Billing Software and Practice Management Software among others.
4. Get Insured
Once you are properly setup and ready to start seeing patients, it is crucial you purchase insurance policies to protect your practice from liabilities. For starters, you should insure your business premise and all the equipment it contains through a business property insurance policy. Secondly, you need to purchase medical malpractice insurance to protect your business from liabilities that may arise from malpractice lawsuits. Thirdly, buy public liability insurance. This will cover lawsuits other than malpractice lawsuits. Workers compensation insurance, business interruption insurance, disability coverage and employee practices liability insurance are also crucial.
Once everything is ready, you can start marketing your medical practice and seeing patients after receiving approvals from industry regulators.
5. Getting Financing
From the guide provided above, its clear that starting a medical practice is a costly undertaking. Therefore, most doctors will require a loan. There are many places where doctors can get a medical practice loan. They include:
i) Mortgage Loans
The best source of startup capital for doctors is a mortgage loan. Doctors are high-income earners, so they can easily procure huge loans that can help them start a private practice. In fact, many doctors usually apply for loans to start their practices. Talking to a mortgage broker for doctors will allow you to setup the loan in the correct way.
ii) Equipment Financing
A large fraction of the startup capital for medical practices can be attributed to equipment purchases. Well, there are many lenders who are always willing to finance medical equipment, computer equipment and other types of hardware. This means that doctors can get all the equipment they need to run a successful medical practice through medical equipment financing.
iii) Government-Backed Loans
The government has programs to support small businesses and startups. Doctors can apply for loans through these programs. However, it is important to note that processing of applications usually takes time. The loan limits are also much lower than what private lenders can offer.
The easiest way to find a suitable loan to finance your startup is to consult a loans broker specializing in business loans. Brokers are knowledgeable professionals who can help you a great deal during your search for a suitable loan to finance your business.