Jason A. Duprat, Entrepreneur, Healthcare Practitioner and host of the Healthcare Entrepreneur Academy podcast talks about the costs of launching a practice. Drawing from his own experience, he shares the primary costs to factor in and why you should consider the Lean Startup method.
- Clinic location will impact rent and insurance costs. The type of practice will dictate the level of equipment needed.
- Payroll considerations should include if you need to hire part-time staff or if you have family helping you, hours of operation and volume of business.
- It’s more cost-effective to rent space instead of constructing a new clinic. Consider what comes with the space like hand wash sinks, paint, room layout, flooring, lighting, ADA accessibility and storage.
- Think about equipment and furniture expenses, as well as rent and deposit costs. Also, consider medical supplies. Jason recommends only ordering 1.5-2 weeks out to start.
- Consider all types of licenses like DEA and business licensing, as well as malpractice and liability insurance.
- Jason suggests consulting with an attorney and a CPA as part of your professional service startup costs.
- Keep in mind marketing costs for business cards, building a website, postcards or direct mail pieces, printed promotions and paid advertising like Facebook ads.
- Lastly, budget for utilities such as electric, water and cable, as well as disposal of sharp and hazardous waste.
- Jason opened his first clinic for under 15k. He suggests making little purchases over time to avoid large cost accumulation.
- Go lean and start small – grow into your practice. It’s too easy to get into a financial hole if you go all-in by purchasing a large space and hiring a big team.
- Jason is an advocate for the Lean Startup method. He opened his first practice with an 800 square foot space and a short-term lease.
- Smaller practices can be lucrative, especially if they offer self-pay services such as direct primary care or ketamine infusion.
- You don’t have to accept insurance when you open a practice. Reimbursement costs average 85% plus you can pay 3-7% on gross receipts to billing companies.
- If you choose self-pay services, you’ll need to market yourself and your practice. Be clear on scope of practice, create a baseline business plan, forecast revenue and track expenses.
- Jason is developing a new online course to teach healthcare practitioners how to open and launch a self-pay practice.
3 KEY POINTS:
- Key factors impacting the cost of starting a practice are location, type of practice and payroll.
- Typical startup expenses can be broken down into construction, equipment, furniture, office space, medical supplies, licensing, insurance, professional services, marketing, utilities and hazardous waste disposal.
- If you’re willing to change your mindset and invest in marketing, self-pay practices can be very profitable.
“Do little expenses over time.” – Jason Duprat
“Start small and grow into your practice.” – Jason Duprat
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