How much does it cost to start a medical practice?
The exact cost of your practice may vary greatly. However, there are several categories of expenses to consider in order to estimate your startup costs. Depending on the size of your practice, the medical office space that you need to rent or build can vary dramatically. Your location can also make a substantial impact on the cost of getting your space ready. Beyond startup costs for your office space, you will also need to consider furniture and equipment. Lastly, you should include 6 months of operating expenses in your startup costs because you probably won’t be full of patients on day 1. Even if you are busy right from the start, you will need to get billing set up with insurance providers and government payers that can take weeks or months to pay you. In the meantime you will need to pay your employees, rent, utilities, software costs etc.
Do doctors actually make a lot of money?
The 2018 Medscape Physician Compensation Survey showed that on average, doctors make anywhere between $223,000-$329,000. Of course, your potential compensation as the owner of your own medical practice can vary dramatically based on your unique assumptions. Our medical practice financial projection spreadsheet can really help you lay out your specific assumptions and predict your potential profitability.
How do I start my own medical office business?
Some of the early steps in your process include to procure lawyers and accountants that will settle your legal disputes. Then you need to find funding as well as deciding on a name and location for your practice. Eventually, you will need to get your federal EIN (Employer Identification Number) and set up your bank account. Before you do any of this, you should create a financial forecast that will help you understand the financial upside and downside of starting your own medical practice.
Can you invest in a medical practice?
According to curveaccountants, it can be quite profitable to invest in a medical practice. Since the goodwill value is low, the return on investment usually is very high. This also comes with fairly low risk. So yes, medical practices with strong operators can be a great investment.