The Ups And Downs Of Starting A Medical Practice

By Author: Hippocrates Publishing
Total Articles: 8
Comment this article

Simply put, the profile of how physicians conduct business in present-day America is changing. While many are opting for employment due to the security of a guaranteed income, there are several physicians that are opting for self employment through opening up their own medical house call or cash pay medical practice. The reasons for the emergence of medical house call and cash pay medical practices include increased pay, more free time, and freedom from Managed Care and HMOs.

While the decision to open a medical house call and/or cash only medical practice is a fantastic one, there are some considerable drawbacks as well.

Unlike a conventional medical practice, a cash only medical practice is marketing and advertising dependent. There is a risk of spending a lot of money with the wrong advertising, which may subsequently lead to limited or no funds. To avoid this, the key is to spend a little bit of money with the right advertising media mix and your cash pay medical practice will thrive.

Cash only medical practices are also extremely dependent upon good market research.

Another possible drawback, ...
... depending on the type of cash pay medical practice in which a physician is interested, would be the financial investment required. With general medical practices for acute simple to medium complexity and chronic medical conditions, startup capital is moderately high. Additionally, one to three employees are needed to start practice, and monthly operating costs are also high in addition to advertising and marketing budget. Physicians must operate this practice full time, as this type of practice cannot be operated on a part time basis.

Physicians interested in medical house call practices are required to learn the logistics for getting around in your local area, which would be the only drawback. Otherwise there are no foreseeable pitfalls, as medical house calls allow for flexibility to operate on a part or full time basis with a small startup and operating budget and high profit margins.

In order to determine if a cash only medical practice or house call medical practice is right for you, there are some key questions to ask yourself. These questions include:

Can the local market support this type of practice?

Would existing patients be willing to transition to the cash-only practice?

What services would you offer?

Would lab tests be a part of the practice?

Would you see the patients in the hospital?

How much would you charge?

What financial outlay would be required to stay solvent during the transition period?

What overhead is vital to the practice, and how many patients will be necessary to cover these expenses?

What would your obligations be to your current patients?

To further help you determine if a medical house call or cash pay medical practice is right for you, consult with Hippocrates Publishing. Since 2004, Hippocrates Publishing has provided invaluable support to thousands of medical professionals all over the world. Their unique specialty is in writing and publishing books and booklets to assist physicians with medical practice marketing and niche medical practices. Visit www.HippocratesPublishing.com today for more information, or call 877-408-2462.