Medliorate

Improving medical students

Starting a Practice

Posted by medliorator on April 9, 2008

Medical practice is a business and start-up is start-up. The most important factors are access to capital, type of business, competition, and payer mix. Business that start-out with less than $5000 cash will usually fail in the first year, while those that have access to $100,000 or greater, will most likely live beyond their one year anniversary. If you want to survive, I recommend raising money, and lot’s-o-it.

 

Some practice’s have inherently high start-up costs while others can be started with significantly less money. For example, I started my urology practice with $40,000 down and access to $150,000 in case the unowhat hit the fan. An internist may be able to start-up for even less, while an OB-Gyn in NY will need in excess of $200,000 to start-up.

 

If your patients are insured, and you have enough of them, you’ll start to make money. If you practice in a very well-off area and can go “out of network” you’ll make the same money with less work and in less time. If you deal with predominantly Medicaid, you’ll probably have to move because you’ll never get there.

 

be forewarned: the freedom to be your own boss comes at great cost.

A reader question: How long to positive cash flow in start-up? [The Independent Urologist]

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