Opening a private medical practice comes with many benefits, from being your own boss and setting your work schedule to greater autonomy. That’s especially true when you consider more than half of physicians would take a pay cut for better work-life balance and those operating their own practices out-earn their employed counterparts, according to recent Medscape surveys.
Patients, too, benefit from the independent model. Private practices, free from bureaucratic red tape and outside financial pressures, allow providers to truly get to know their patients’ struggles and future goals, thereby making decisions that are in the best interest of their patients.
Despite these compelling reasons, a lack of business experience prevents more healthcare professionals from going private. While experts on the clinical side, many medical professionals have not received education on the business side of medicine. Medical curriculums often overlook business topics and only 1% of students graduate from a dual MD-MBA program.
This gap in business knowledge has inspired an innovative solution from one healthcare organization. FYZICAL Therapy & Balance Centers created the Partnership Advantage Program, which pairs licensed physical therapists with entrepreneurs to establish, build and grow clinics.
Results from the program point to the success practices may achieve when ownership possesses both clinical and business expertise. Drawing on the success and key learnings from these partnerships, the following are fundamental business concepts for clinicians to consider on their journey to independent healthcare.
Write a Comprehensive Business Plan
Launching a private practice requires careful financial planning. A business plan not only serves as a roadmap for achieving goals but is also essential for securing funding from banks or private investors. Covering business description, mission and vision, market research, marketing plans, and financial projections, and more, a solid business plan is crucial for the success of the practice.
A business plan should accurately represent all initial expenses, such as office rent, payroll, EMR system, equipment and supplies, but focus on keeping them minimal when starting out. If this sounds like a lot, the good news is that you don’t need to do it alone. Seek assistance from business consultants or web-based services to write the plan.
Carve your Niche
Setting your practice apart is key to growth. This can be achieved by offering specialized services, which separates you from competition and attracts new patients. In today’s healthcare climate, marked by financial challenges and stagnant reimbursement rates, carving your niche allows you to offer complementary services to existing patients, enhancing their care and increasing their lifetime value to your practice.
Strengthen your Practice through Community Outreach
Build meaningful connections with various key audiences through community outreach initiatives. Customize your outreach content for each target audience, whether it’s patients or healthcare organizations for potential referrals. Actively seek opportunities to present information about your practice in your community, such as at senior centers or local business offices. Additionally, consider strategic sponsorships, such as supporting youth sports teams, to increase your practice’s visibility. Through targeted outreach, you expand your patient base and position your practice as an important part of the community.
Commit to Continuous Education
In the fast-paced world of healthcare, technologies and ways to care for patients constantly evolve. That’s why it’s crucial to dedicate yourself to educating the public and doctors in your referral network on an ongoing basis. Implement routine tactics to share the latest developments about your practice and industry, such as through monthly newsletters delivered to other doctor’s offices. This fosters collaborative relationships with your medical community and also positions your practice as an innovative healthcare provider.
Develop a Strategic Growth Plan
Growth plans can help spur innovation and safeguard against threats. Take a deep look at your value proposition (why patients choose your practice), target patient visits and current revenue streams. The goal is to identify opportunities to scale your practice, enter new markets, and increase profitability – such as opening new locations to expand your patient reach or introducing innovative services to stay ahead of the competition.
Chris Bailey
Chris Bailey is a Doctor of Physical Therapy and multiunit franchise owner of FYZICAL Therapy & Balance Centers in Northwestern Pennsylvania. Seeking growth for his family-run physical therapy clinic in Corry, PA, Chris partnered with business expert Karla Mazza, and together as owners, they transformed Chris’ “mom-and-pop” operation to FYZICAL, growing from one to four locations with over 20 clinicians. Chris and Karla helped inspire FYZICAL’s Partnership Advantage Program, a program that brings physical therapists and savvy business entrepreneurs together to help communities nationwide!
