Let’s see what is the cost for a sole practice start up in today’s market.

There are many factors involved in the cost of starting your own practice, you have to see what you can afford before you make your move.

Keep in mind it is not what you spend, it is how much you can make in return. This brings up to a question of using a professional practice start up consultant. Given what an experienced consultant at a reasonable rate can bring to the table, we think that the service does pay. You can try and do research on how to do it on your own, but keep in mind there will be times when you will wish to have some help by your side. Each practice start up is an individual case, and the playing field is always changing, the trick is to keep up.

How much will you need to get your practice off the ground, well in today’s market a small solo practice can be started at $75,000.00 to more then a $100,000.00. All depends on you and your ideas, do you want slow improvements, or do you want to do everything all at once.

Lets start with what I think is one of the most important factors in starting your own practice the location. Today’s real estate market is in your favor, more then normal amount of space for lease is available on the market, and prices are much lover then they were several years a go and landlords are in need of tenants, this gives you a chance to negotiate a great deal.

One of the choices you will have to make is whether you want your practice to be a stand alone, or in a medical complex. There are advantages in both cases. The stand alone practice will have more visibility and no neighbors to deal with, plus your new patients will have less chances of getting lost. It usually comes with a higher price tag. The advantages of being in a complex, is that you are surrounded by other medical offices and it might be a little easier to build your patient base, if you don’t have much competition in the complex. The space will also cost less.

Keep in mind there is also medical space for sale if you have the capital, it might be a great move, given today’s real estate deals. Plus the interest rates are at rock bottom.

The second factor would be the actual space build-out. The contractor the architect can be costly, keep that in mind when looking for space. You might get lucky and find space that just needs light renovation. It pays to spend a little time and look at your options.

The next factor we want to look at is the purchase of medical equipment for your practice. depending on your specialty the equipment can be very costly, and you have a decision to make whether to buy or to lease. there is also an option that you might want to look at, used medical equipment. Purchasing used equipment can save you up to 50% of your equipment cost. Just keep in mind, there are great deals out there.

Another thing to keep in mind is that additional income from the procedures can be an important sources of your revenue.

One more factor that we need to talk about is electronic medical records, your IT system and support. Yes in the age of technology, you must keep up and have some sort of computer system in place. The cost of technology is going down, more and more, equipment is becoming more affordable and simpler to use. There is no reason not to have a system in your medical practice. You can also find a more affordable support help in today’s labor market.

When it comes to the EMR system, it is a choice of preference and being able to afford it, given the expenses at hand. We do think that it is great to have electronic records, but we also think that there will be better products in the near future and the price tag will be much less. At this point you are at 10-25,000.00. Also all the talk about the government programs, please read between the lines.

Please do not forget about the formation on your PC., and all the professional that you will need in your corner. Like: attorney, accountant, insurance agent, banker, all your staff, marketing personal, and your trusted practice start up consultant.

Keep in mind starting your own practice can be complicated, but it doesn’t have to be, if you have the right professional help by your side.

 by YSNY

Sr. Consultant

Real Practice Solutions, LLC.

http://www.realpracticesolutions.com

Opening a Solo Medical Practice!

If you are a physician launching a solo practice, or at least considering starting a private medical practice, most likely it means it is time for you to do it.
The first thing on your mind should be a business plan, it is recommended to draft one on your own and then take it to a professional to handle the rest. Don’t handle the business plan on your own, you will not save money by doing that, in fact you will lose money in the long run. (nice things to have: attorney, accountant, banker, consultant, architect, contractor, IT resources, lots of friends and a ticket to Vegas, you never know when your next vacation will come!)
Next, you will need to find a financial source, yes, a bank is a great idea, and here is where a good business plan comes in handy.
Once the financials are in the works, you should have an idea of a location. I hope you picked a great name for your medical practice and created an entity). I am sure you have done some research on the type of office you would love to have and a target location. All that is left is to find suitable space. Your timing couldn’t be better, rents are down and the landlords would love to have you as a tenant.
Keep in mind, location plays an important part in marketing your practice.
You can also look into medical office buildings for space dedicated to medical tenants; it is a new trend in big cities. An easy place to make friends.
You can work with a realtor specializing in medical space, or you can look for yourself.
You will save money if you lease space that’s already built out; all you have to do is remodel.
Recommended, you hire a contractor that has experience with the build out of medical space, you will need help with the layout. The trick is to be efficient with space and keep in mind all the new technology.
While you are getting all set up in your actual space, there are major things to consider, one of which is your staff. Do you need a solid manager? How much can you pay? Don’t forget about marketing and your hours of operation.
These are just sum of the questions that need to be answered.

I hope this rough draft with help with some of your questions and I hope you will join us for continuation of Opening a Medical Office.

YSNY
Sr. Medical Practice Consultant
Real Practice Solutions, LLC in New York
http://www.realpracticesolutions.com

Let us increase your bottom line!

Medical Practice Management

 Starting/relocating or joining a new Medical Practice can be overwhelming at times.

The check list below can get you on the way, we do recommend at least some professional help along the way.

• Physical Location in medical office condition with phone service in place
• Office manager and/or Practice Management Consultant
• Check for all required Licenses
• Federal Tax ID
• Workers Compensation Insurance
• Professional Liability Insurance
• Hospital Privileges
• Credentialing Precess
• Security Set up
• Fax Service
• Internet Services (T lines, Cable, DSL)
• IT system and backup
• IT service
• Web Site
• Advertising and Marketing
• Business cards and Appointment cards
• Answering Service
• Staffing
• Front Desk Set Up
• Risk Management
• Emergency plan/training
• Waste Disposal
• Compliance
• Reception Room set up (magazines, publications)
• Electronic records
• Scheduling System
• Billing (in-house or billing service)
• Collection Services
• Dry Run
• Evaluation

These are some of the things that need to be covered to have a successful start in a new practice, assuming you have an attorney, banker, accountant, and all your consulting help in place. Yes you will need the consulting help to get things up and running.

Tip: If you have the budget, start with good quality equipment it will bring you money in the long run, and please get an office decorator!

Don’t forget patients hate to wait, if they do you have to make them comfortable.

Posted by a Practice Management Consultant at Real Practice Solutions, LLC. in New York.

We specialize in making your practice work more efficiently and more profitably.
http://www.realpracticesolutions.com

Whether you are starting a new practice or growing an existing practice you need a plan of attack.

Dwindling insurance reimbursements coupled with rising medical expenses pose a serious threat to every physician practice, something you can’t ignore.

The right practice management is one of the most important steps you can take to insure your success.
During the establishment of your new practice, or an addition of a new location, there are many planning, operational, administrative and management tasks that need to be addressed.
Something to consider would be to bring in a practice management consultant to get things up and running.

Who is handling your credentialing process?
Lets hope it is a practice management consultant, or someone that has experiense with the process. Credentialing can be a long and tidious process that can be simplified, if you let the right person handle it. It has to be done the right way to avoid complications.
Yes, there is an initial expence, but just think how much time and money you can save by doing things the right way from the start. It will also free up your time to handle the things you yourself must be able to do.

Some physicians are conflicted about whether they should have in-house billing, or outsource this process.
Yes, you can do your billing in-house, you will need to dedicate space, time and resources.
Can you find the right practice manager that will be able to handle a busy practice, stay on top of all personal, most importantly your front desk (because that is where most problems start in the office), stay on top of all the administartion needs and on top of that billing.
Can you afford a practice manager of that caliber, can you afford a few mistakes(major/minor) in today’s economy.
If you are not able to hire a dedicated professional biller and a good practice manager, I would highly suggest that you outsource your billing to a professional.
Yes, trust is an issue, but I am sure you will be able to find the right billing company to work with. In addition if you for some reason don’t like the billing company that you are with, there is no reason not to switch and as soon as possible.

There are some companies that handle the billing aspect and can also provide valueble addvice on your practice management.
Practice management and billing go hand and hand. One affects the outcome of the other.

Proper billing process starts as soon as the patient walks into, or calls your office.

Outsourcing your billing, will also free up your very valuable and price space, which can be utilized with additional testing equiment and/or examination room and so on.

Evaluation and additional planning should be done monthly to optimize your goals.

Posted by a Practice Management Consultant at Real Practice Solutions, LLC. in New York.

We specialize in making your practice work more efficiently and more profitably.
http://www.realpracticesolutions.com