If you plan to set up a shoulder surgery clinic, it will not be an easy task. The same can be said about any private medical practice. The task requires extensive research, sufficient knowledge about regulations, securing equipment and then there’s marketing.
Just like any other business, starting a shoulder surgery clinic requires planning and bringing together a team of reliable and dedicated staff to execute that plan efficiently. Basically, there is a lot to tackle, which is why this blog will focus on making the whole process simpler so that you can start your medical practice in no time.
Why Start Such a Practice?
Considering the risks of starting your own practice, it is not difficult to see why people rarely start their own practices. This should also explain why the healthcare industry’s rate of consolidation is higher than ever before.
According to Becker’s Hospital Review, the consolidation rate throughout the healthcare industry has increased without any dips. In fact, the first quarter of 2017 saw 48 medical group acquisitions and mergers, which was a 78% jump from the year before that.
Big-name hospitals and large enterprise systems have an incredible influence on healthcare service providers, while the growth of the industry rests in the hands of a few. For most providers, it is only logical to join hands with these conglomerates, since it involves no risks.
Even though working for such conglomerates seems like a great idea, it does not come near the feeling of being your own boss. The sense of ownership and probability of greater profits is enough to encourage most individuals to start their own private practices. Although the journey is tough, success is well within your reach as long as you have the right information.
Obtain Financing and Create a Pro Forma
If you are wondering what a pro forma is, it is a scaled-down version of a business plan. In a pro forma, you must account for expected revenues, debt, and expenses. This also means you will need to know exactly where your patients will come from.
Since bankers can tell the difference between realistic and unrealistic projections, make it a point to have a solid explanation for the numbers you use. If possible, incorporate statistical analysis of other medical practices to support your projections.
If you want a strong pro forma, give projections up to three years, or five years even, to better your chances for success.
When it comes to financing, it can be tricky, especially if you are getting a traditional bank loan. With most healthcare providers having a negative net worth, you will need to make sure your pro forma is realistic.
- Do not get a traditional loan. If your bank has a medical division, submit your loan request and pro forma there instead.
- Shop your pro forma around to receive several offers. Each will offer different terms, so you can choose one that best fits your needs and requirements.
- When drafting your pro forma, be conservative. Do not include purchases that are extravagant, like leather chairs for instance.
Staff your Practice and Purchase Equipment
Once you have opened a line of credit and have received the loan you applied for, you can start work on bringing about the remaining pieces to start your practice – purchase the equipment and hire a team. This may seem easy, but it requires extensive research for every decision you ought to make.
· Electronic Health Record Database
An EHR (Electronic Health Record) database is a necessity more than a luxury these days. It is a universal tool to streamline communication and for digitizing records.
· Billing Service
You can outsource billing to a third party, but everything will be complicated. Your staff will not oversee the entire process which means something like making a claim will be time-consuming.
· Credit Card Processor
Undoubtedly, you will make most of your money from Medicare or insurance companies; you will still need a credit card processor so that patients can pay for healthcare on their own.
· Office Manager
While assembling your staff, you will need an office manager to ensure the day-to-day operations run smoothly. The person in charge needs to be reliable, responsible and dedicated to the cause. But these qualities will not be enough. You will need an office manager that has the experience as well.
· Auxiliary Services
For your shoulder surgery clinic, you might also want to consider offering auxiliary services. Not only is it a great way to make more money, but it will keep your patients happy and gives you the ability to separate yourself from the competition.
Opening your Shoulder Surgery Clinic
Before opening your doors for shoulder procedures to the public, it is necessary for you to take care of several logistical steps, out of which the important ones are as follows:
· Get a Tax ID and Incorporate as a Legal Entity
The primary reason you will want to incorporate is to benefit from a limited liability. This means if you are sued, the practice and its assets will be at risk and nothing else.
Based on the entity, the tax benefits vary, so decide what type of incorporation you want to opt for.
· Establishing Compliance Documentation, Procedures and Policies
For your practice’s success, and to avoid any problems, you will need to set verifiable and current procedures and policies. The standards set should cover all aspects from daily operations to billing and so on. Make sure you have robust security measures in place to keep your business premises safe.
· Getting Insurance
The importance of insurance for businesses cannot be denied, but it is even more crucial for medical practices. Foremost, you will want to get malpractice insurance, and then you can consider other insurance coverage options like life and liability insurance.
Starting your own shoulder surgery clinic is a whirlwind of a task, so you need to cover yourself on all fronts. Apart from the factors mentioned above, you will need to evaluate how your practice is doing and market it accordingly. The list can go on and on, but at least you know where and how to start a shoulder surgery clinic.