Stressed out by striking out? How to become an independent medical practitioner
Many medical professionals want to be independent, but the stress of getting to grips with leaving a regular clinical environment and working this way can be extreme. After all, most medical practitioners aren’t entrepreneurs.
But what if you still want to make the jump and work for yourself? What do you need to do?
Fortunately, this post has answers. It explores how you can strike out by yourself and become an independent medical practitioner. We look at everything, from your motivations for striking out by yourself to the qualifications you’ll need and the legal hurdles you must overcome when taking the first few steps.
So, here’s everything you need to know.
Think about why you want to make the move
The first step is to think about why you want to make the move to becoming an independent medical practitioner with your own business. You want to consider your motivations and goals and see if they align with the actual process of becoming independent.
For example, if you care about patients and their well-being, then you might not actually have to go down the independence route. Instead, you could explore whether there are other clinics or hospitals you could work at.
Likewise, if financial independence is your goal, setting up your personal, private business may not be the best approach. A simple promotion or a better job at a larger institution could be the superior option.
Beyond clinical expertise, you also want to check that you have the skills to run an independent practice. Many medical professionals are experts in their fields, but they lack the communication skills and business acumen to really thrive by working in clinics on their own.
Then, of course, there is the resources issue. You may not have the initial capital to cover your startup costs.
Of course, if you do set up a clinic by yourself, you’ll gain independence and the ability to hire whoever you want. You can also specialise, arrange your marketing, and perhaps ultimately earn a higher income overall from insurance payouts and fee-paying patients.
Get qualified
You’ll also need to ensure you’re fully qualified if you’re striking out by yourself. You can’t usually do it as a resident or before you become board-certified.
Make sure you have the specialist qualifications you need if you want to offer specific services. These are vital for insurance purposes and ensure that you’re covered in the event of medical negligence.
At the same time, you should also consider the legal aspects of setting up an independent medical practice. These include things like:
- Choosing a valid legal structure for your clinic (usually an LLC or corporation)
- Getting the required local licensing and permits for setting up a clinic (since there may be zoning restrictions on the types of medical practices you can run)
- Ensuring you have systems in place that let you comply with HIPAA requirements
- Getting malpractice insurance for professional liability
Create a business plan
After that, you’ll want to create a business plan. Having an idea of what you’ll offer and how it will work can be enormously helpful and reduce the stress caused by uncertainty.
Your business plan should start by defining your niche. Most successful independent clinics do well because they offer specific services, like podiatry or cancer care.
Which you choose will depend on your specialty, but just check that there’s a market for it. Most small towns need doctors who can help with kids’ issues, but they don’t always need the most advanced treatments.
If you can create some financial projections, that helps too. These allow you to estimate monthly costs and revenues to see whether your practice is viable and the number of patients you require to break even.
If you have a lot of staff, you’ll need more patients overall. Therefore, be conservative and stick to what you think’s likely (at least for the first few months). While being optimistic is alluring, it isn’t always accurate.
A marketing strategy is another critical element of your medical practice’s business plan. Getting this step right allows you to reach customers wherever they might be, including online.
Referrals are usually the most powerful form of marketing for GPs’ surgeries and other clinics. If you can get people to recommend you, then you can quickly draw in a larger circle of patients, especially if you can offer proper bedside manner and quick appointments.
You can also use reviews for social proof. Getting patients to fill out Google Reviews helps you become more prominent and trusted when people search for services like yours online.
Lastly, you want to ensure your business plan has a growth strategy. This document tells you how your business will move forward in the future and what you want to achieve.
Growth plans are all about long-term goals. The idea is to set a target for yourself and then allow your mind to fill in the gaps required to get there.
Secure financing
Even with the best-laid plans, you may still need to secure financing. Additional funds allow you to complete your clinic and grow it faster.
The best way to do this is with the help of investors or partners. These people provide more funding to your venture with the promise that you’ll pay them back with interest in the future.
You can secure financing in numerous ways.
One way to do it is to simply share your business plan with people who have experience investing in new clinics. Usually, they will have a good idea of whether your ideas will succeed and how to change them if they think they will fail.
This feedback is critical for you as a medical professional because it tells you whether your ideas are correct. Sometimes, you may find that you’ve got the wrong end of the stick and need to change your approach to avoid disaster.
Another way to get financing is to approach lenders for loans. These are usually less flexible or understanding than investors, which can sometimes make your life difficult.
You could also try to use personal savings, though there’s a bigger risk here. Most medical professionals prefer using other people’s money to their own.
Choose your practice model
Once you’ve got the money you need, the next step is to choose your practice’s model. You need to figure out what your workflows will look like, and how you’ll generate cash.
One approach is to start a solo practice. Here, you manage all aspects of the business, perhaps with the help of an affordable virtual medical assistant who works in the background to manage appointments. This approach requires the least funding and organization, and eliminates the need to align with other independent partners.
A group practice is another option. Here, you form partnerships with other medical professionals and work with them to share resources and administration. These approaches can lower costs and risks, while the entire establishment works toward improving its reputation.
You could also try a relatively new approach called “concierge medicine.” The idea here is to get patients to pay a subscription fee and then manage them case-by-case, as necessary. In essence, you’re putting yourself on retainer until a patient tells you that they have a problem.
Finally, some practices are setting up telemedicine operations. These provide consultations over the phone, alongside prescriptions in the post.
Implement technology
While you’re considering setting up your medical practice, you need to ensure that you have the proper technology available to make it all happen. These streamline your operations and ensure better patient care.
For example, you could put some money into proper practice management tools. These dashboards give you and your admin staff an overview of your billing and reporting, making it simpler to process claims.
You could also put money into cybersecurity to ensure you remain HIPAA compliant. Firewalls and regular software updates, along with EHR implementation, reduce the risk of fines considerably while enhancing the patient’s experience.
Telemedicine platforms are another place to look. Specialist solutions like Doxy.me eliminate the need to develop specialist in-house systems.
Build a team
Finally, you’ll want to build a team of people to begin your independent medical practice. You’ll need to consider various assistants and people you require to support you, even if you’re running a solo business.
Most practitioners outsource the majority of their tasks. For example, you could use an IT firm to manage your health records and work with recruiters to find receptionists and other staff. You could also get cloud-based accountants and assistance to help you with scheduling instead of doing everything yourself.
While you’re doing this, make sure you establish a proper billing and payment system. Ensure that it is easy for your patients to pay you.
The best approach here is to use billing software for processing and invoicing. It can link to your bank account and update your accounting tools automatically.
You should also post your fee structure for insured and out-of-pocket patients. These include credit cards, digital wallets, and payment plans.
