Essential Tips for Young Doctors Starting and Running a Private Practice

Starting and running a private medical practice is a rewarding but complex endeavor, especially for young doctors. Success requires a blend of medical expertise and strong business acumen. This article outlines key considerations to ensure a smooth transition into private practice.

1. Financial Planning and Contracting

Are you sure you can get contracts with insurance?

Early on in my career, when I opened my first office, financial planning was one of the most critical aspects to address. Hospitals and insurance companies are key players in the success of any private practice. Here are some points to consider:

Develop a strong relationship with insurance companies to secure contracts. This often requires a combination of negotiation and persistence. Strategically choose which insurance plans to accept based on their patient demographics. Review your contracts carefully to understand penalties and assessments.

Are you sure you can get hospital privileges?

Patient referrals through established relationships with physicians and hospital staff can significantly bolster your practice. Building these relationships takes time and may require:

Volunteering in hospital departments. Maintaining a referral network. Participating in community health fairs and events.

2. Office Space and Aesthetics

Do you know enough referring physicians?

The physical space of your practice is also crucial. Here’s what you need to remember:

Opt for a practical office space size. Even a small space is sufficient. Excessively large offices can be a financial burden. Avoid overly ostentatious displays. Chandeliers and marble floors are not necessary. Comfortable seating, tasteful art, and functional spaces are key. Evaluate existing office spaces by visiting other physicians' practice locales to get inspiration.

Is there a need for another practitioner of what you do?

Ensure there is a market need for your type of practice. Conduct market research to identify gaps and ensure there is demand:

Survey potential patients in your local area. Consult with established doctors in the field. Attend industry conferences and networking events.

3. Money Management and Staffing

Can you situate your practice in an attractive setting?

Choosing the right location is vital for your practice’s success. Here are some factors to consider:

Stay close to your primary hospital and professional buildings with other physicians, labs, and imaging centers. Evaluate the daily traffic to and from your location. Consider the visibility and accessibility of your office.

Do you have enough cash to sustain staff payroll and overheads and personal expenses?

Assess your financial readiness to ensure you can cover operational costs, staff salaries, and personal expenses:

Plan to pay for office equipment and furniture manually, such as used items. Hire based on necessity and affordability. Negotiate salaries and consider setting probationary periods. Preserve every penny you don’t absolutely have to spend.

4. Time Management and Patient Care

Be aware of where you're practicing.

Proximity to hospitals and other medical facilities can affect your practice's success. Here’s what to consider:

Evaluate the benefits and drawbacks of each hospital for patient referrals and accessibility. Be mindful that excessive travel can detract from patient care and staff management. Stagger your OR and clinic days to avoid overbooked schedules.

Don't overbook.

Effective management of patient appointments is crucial for patient satisfaction:

Avoid overbooking to prevent long wait times and frustrated patients. Provide call back numbers for appointments to keep patients informed if there are delays.

5. Payment and Insurance Contracts

Negotiate payment contracts with as many third-party payers as possible.

Securing payment from insurance companies is essential for financial stability:

Develop strategic contracts with as many insurance providers as possible. Understand the terms of each contract and the potential for penalties and assessments. Consider patient demographics when choosing insurance plans to accept.

Your choice: Medicaid.

Making an informed decision about accepting Medicaid can impact your practice's financial viability:

Review the potential income and coverage benefits of Medicaid. Consider the administrative and legal requirements of accepting Medicaid.

Being generous is not always the best policy.

Empowering your practice with a well-structured staffing plan is crucial:

Determine competitive salaries for office staff. Check credentials and references of potential hires. Implement a probationary period for new employees.

Conclusion

Starting a private medical practice is both a rewarding and challenging endeavor. By carefully considering financial planning, office setup, patient care, and payment contracts, young doctors can set themselves up for success. This comprehensive guide aims to provide essential insights and practical advice for those venturing into the world of private practice.