Our client became a doctor to help people. She works for a large corporate healthcare system in a big city. She makes good money– enough to cover her student loans and live a comfortable life.
But that wasn’t why she became a doctor. She wanted to help people. She sees the big systemic problems in her job and realizes she’s not doing what she set out to do.
She goes back to her “Why?” She thinks maybe she can help her patients have better outcomes if she was in charge of her own practice. Maybe she can get back to helping people if she had her own practice.
The details change, but when doctors go back to their “Why” they often find themselves wanting to start their own medical practice. Sometimes the “Why” is to help more patients, sometimes the “Why” is to have more time with their family. Sometimes it’s just to get ahead of the student loan payments. And that’s the first step in starting a medical practice. Go to your “Why?”
What Type of Medical Practice Do You Want to Open?
If you know your “Why,” then you’ll know what type of medical practice you’ll be starting. Your goals are going to determine your practice. First think about your “Why” and then research the types of healthcare practice you could start.
Start a Group Medical Practice
A group medical practice with several doctors can help spread out costs and time. It can give patients more choice. It also takes collaboration and compromise, but you might have an easier and lower cost starting a medical practice with the assistance of other medical professionals.
Start a Federally Qualified Health Center
You can start a new practice as a federally qualified health center. This is like being part of a hospital system, but it can be a very safe way of starting a successful medical practice. You won’t be as independent as a sole proprietorship practice, obviously.
Start a Solo Practice
A solo practice might be exactly what you’re looking to do. You’ll wear several different hats and be able to practice healthcare exactly as you see it. You’ll be able to hire and fire your “Dream Team.” You will also bear the responsibility of the business as well as the care you provide.
Start a University or Academic Health Center
You can start a practice within a university or academic health center setting, helping educate future healthcare providers, minimizing your personal business risks, but also operating with less autonomy than a typical small business.
Start a Medical Practice within an Existing Hospital System
Start your practice within an existing hospital system. In some ways you’ll be more like an employee, but in other ways you’ll have some flexibility in your practice and you will have access to the hospital system’s resources. Many urgent care clinics are joint ventures, so if that’s your “Why”– look into this option.
Once you know “Why” and you know what type of practice will serve that “Why,” it’s time to get started. If you’re already Googling “How to Start a Medical Practice” you’ve already got some ideas, but the first step is always going to be making sure you’re credentialed and licensed.
Ready to start your own medical practice? Learn about Med Trust Capital Group’s comprehesive financing solutions for healthcare professionals.
Step 1. Licenses and Credentials
It sounds obvious, but making sure your paperwork is in order will make things extremely easy for the next step– obtaining funding. Make sure you are properly credentialed and licensed for the type of medical practice you’re starting. Once you are– financing comes next.
Step 2. Financing
Financing a medical practice start-up is easier than some other types of start-ups, but it’s not easy. You’ll need to make sure you talk with several different lenders. It always helps to talk with a specialty healthcare practice lender like MedTrust Capital Group, but do your research and find the lender with the best rates. Talk to your accountant and financial advisor because low rates don’t always create the best debt structure.
When you’re financing your practice, you’ll have to have a detailed business plan already in place for any start-up financing. This is usually in the form of detailed spreadsheets and documents, and can also include pictures and video. It can include marketing materials and webpages. It can be as simple or as complex as it needs to show the legitimacy and profitability of the practice. The business plan needs to clearly describe the business as a legal entity, so again it’s helpful to talk to a lawyer and an accountant and make sure the business-side of the practice is set up the way you want and will be set up in a way that is sustainable for the future.
Want to know more about your financial options when starting a medical practice? Med Trust Capital Group will customize a loan package to fit the needs of your new practice.
Related Link: Healthcare Group Practice Financing
Step 3. Starting a Medical Practice
When you have financing and a line of credit you’ll need to set up your space, purchase equipment, and hire staff. Presently, some new health practices are using telemedicine and not purchasing new offices or even equipment, but they do need to purchase software and customer management tools, and computer equipment. Healthcare practices that use specialized equipment need to purchase or lease this equipment before opening and make sure the terms and conditions work for the practice’s financial future.
Even the smallest healthcare practices need help, especially with administrative tasks and insurance services. You will have to consider hiring full or part time staff or whether you can hire independent contractors to take care of various non-healthcare related tasks.
You’ll also have to consider marketing and sustaining the business as it grows or sustains itself.
Now You’re on Your Way to Starting a Medical Practice
These 3 steps are easier read than done, and there are several moving parts in each one, but starting a medical practice doesn’t have to be overwhelming and doctors just like you do it every day. Each step is just as important– don’t skip or discount the importance of any step. Being credentialed, getting financing, and starting the practice are all like links in a chain. If any of the links is not strong enough the process will fall apart.
Ready to apply for financing your new medical practice? Apply with Med Trust Capital Group, a trusted lender for healthcare professionals.
Related Link: SBA vs. Conventional Loans