This Guide to Preparing a Medical Practice Business Plan has been developed to assist both doctors and practice managers understand the potential of their practices. It contains numerous practical tips and advice and identifies the main issues connected to planning and successfully running the practice. It has been identified as an area where practice managers and doctors alike have a keen interest, and a lot of important information is contained in the guide.
Setting up a new medical practice requires considerable planning, time, and often financial investment. It is critical to plan ahead, not just on the physical aspects of the medical practice such as the location, building fit out and personnel, but also the administrative aspects.
The structure of practices can vary significantly according to needs. Each structure has different advantages and disadvantages covering the level of autonomy, risk, responsibility and cost.
Practitioners need to decide whether to practice with other doctors or on their own. Choosing to work with other co-owners could have numerous benefits, however they are very minimal if the co-owners of a practice do not work together or more importantly do not completely trust each other as business partners.
Staff are easy to hire but not so easy to fire. Therefore, much thought should go into your practice before another staff member is hired. Staff salaries are usually responsible for a large percentage of your expenses. Here’s a list of alternatives we recommend you consider before hiring.
Buying a practice should be the best investment for a GP. A mark of a good practice is a demonstrable ability to produce an above average return for its owners. Prospective buyers will be prepared to pay a premium over the value of the practice’s tangible assets to receive that above average rate of return.
Budgeting is the basis for all business success. It helps with both planning and control of the finances of the medical practice.