How to Build a Private Practice
According to the Bureau of Labor Statistics, approximately 15 percent of physicians are self-employed. This statistic includes both primary-care physicians and specialists. The remaining 85 percent of doctors work at medical schools, outpatient care facilities, group practices, government medical centers and public and private hospitals. Doctors often decide to open a private practice to have more control over their philosophy of patient care. Although launching this project is a large undertaking, many physicians believe it's worth the effort. But, before getting started, it helps to have a few tips.
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Instructions
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Get the funding for your private practice. After several years of school and putting in time as a resident, many physicians need financial assistance to build their private practices. Before applying for a business loan, make sure to develop a business plan for your practice. Free template can be found online (See Resources.).
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Take care of the business details. You'll need to choose a location, which is close to your target clientele and apply for business licenses with the appropriate department of local government. In addition, you'll need to outfit the office with appropriate medical equipment and supplies. For example, both family and specialty practices will need to purchase blood pressure cuffs, stethoscopes, thermometers and exam tables. However, specialists will need to purchase more specific medical equipment (see Resources for physician equipment and administrative supplies). For example, an OBGYN would need to purchase ultrasound equipment for the office. For a complete list of start-up equipment, including administrative equipment and supplies, check out your professional association. For example, depending on your area of specialty, you might contact the American Academy of Pediatrics, the American Academy of Family Physicians or the American Academy of Dermatology. Also, apply for malpractice insurance and privileges at the hospitals at which you plan to practice.
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Join professional and community associations. Whether you're a family practice doctor or a specialist--consider joining the American Medical Association (See Resources.). It can provide resources to get your private practice off the ground. Also, check out local community associations. The best way to find these organizations is getting in touch with your local chapter of the American Medical Association.
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Recruit the right physicians for your practice. When building a private practice, choosing the wrong physicians can be a critical mistake--costing your practice a large amount of time and money. Look for physicians who match your pace, patient philosophy and basic work-flow patterns. Soliciting the help of a health recruiter can assist in finding the right matches for your practice. They can also assist with other medical staff such as the office manager, nurses and medical assistants.
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Choose the right technology for your practice. With hundreds of health information technology vendors after your business, it's trick to pick the right one. Choose a vendor that is certified with the Commission for Health Information Technology (CCHIT).
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Market your practice. When you've set a grand-opening date, send out a press release to local publications. In addition, send out a letter to medical societies in your area and invite other physicians to attend a grand-opening event at your office. Get involved on committees at local hospitals and start networking to generate interest (and patients) for your practice. In addition, when you hear about new physicians moving to your community, set up a "meet and greet" to grow your professional network. Consider direct advertising. Check out consultants that specialize in this area (See Resources). You also can contact your local Chamber of Commerce for a recommendation.
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Tips & Warnings
Get a mentor. Whether it's a medical school professor or professional acquaintance, having a mentor when starting up your private practice is helpful. They can shed light on common mistakes and pitfalls of managing this business.
Develop savings before launching your practice. Insurance companies can take 60 days or more to pay health claims. When applying for your business loan, make sure to factor in these expenses while establishing your business.
