Launching Your Private Practice: Key Steps for Success

YoungMD Connect recently hosted a webinar titled “Launching Your Private Practice: Key Steps for Success” which was led by Michael Somenek, MD. Dr. Somenek is a double board-certified facial plastic surgeon who owns his own cosmetics-focused practice in the Georgetown neighborhood of Washington, DC. He has valuable insights into starting his own practice after first experiencing two different private practices that did not fit exactly with his future career goals.

Here are some of the key considerations when opening a new private practice, according to Dr. Somenek.

UNDERSTAND THE BUSINESS SIDE

The first thing to start thinking about is a business plan. This will include your vision for the office space, patient load, revenue, office staff, etc. Not only will a bank need this type of document for a business loan but creating a business plan will help you flesh out your ideas and purpose of the practice. You will need to decide on a legal structure; an accountant can help with this. There are different benefits and restrictions to being a sole proprietorship vs an LLC. Finally, you need to have a financial plan for the startup costs, and again, an accountant can help with this.

LOCATION MATTERS

It is key to choose a strategic location. This includes not only the neighborhood but accessibility to patients and the surrounding businesses. It is crucial to consider the surrounding medical practices as both a referral source and potential competition. It is important to understand the local demographics and the patients you expect to recruit.

YOUR NEW OFFICE SPACE

Depending on geographical location, you may lease or purchase an office space. Dr. Somenek chose to lease because of the cost of buying in Washington. He suggested getting a “test fit” from an architect— basically just the initial outline of a floor plan, to make sure the space will work and flow. It is important to make sure you can achieve the necessary spaces to run your practice. You may be able to get tenant improvement money from the leasing company to make the office to your liking without using solely your capital investment money. Don’t forget that an architect will not pay for everything, so it is vital to have a binding agreement with a fee schedule and compare multiple quotes. It is important to consider the equipment and technology you will need. Any office will need examination chairs, computers, cabinets, etc. These can be purchased or leased from a refurbished medical equipment company. The entire process, from leasing a space to opening your doors, can take 4 to 6 months, so that should be a consideration in your planning. One suggestion Dr. Somenek made about this waiting period was to rent examination rooms from another practice that may be underutilizing its space, and work out of that office while waiting for your construction to finish.

MARKETING AND PATIENT ACQUISITION

In the current, internet-based society, it is imperative to build a brand with online reviews and reputation. Focusing on the patient experience is key. Dr. Somenek reminded us to create a welcoming environment and make sure the patients feel heard and understand the plan. Patient referrals from friends will help expand your practice. Patients like to be referred to you from other doctors they trust. Networking with local physicians in other specialties will help to get your name out in the community. If you bring around business cards, they can give them to patients looking for a new provider.

STAFFING AND TEAM BUILDING

Dr. Somenek suggested hiring an experienced staff but cautioned to start slowly and hire as needed. He explained he only had one employee when he started and very slowly added staff. He admitted he probably waited too long to hire a business manager and was doing all the interviewing and hiring for many years. It is worthwhile to make sure to invest in training and development of your staff. There are state and federal regulations that must be followed as well as HIPAA compliance. With all this, Dr. Somenek reminded us to set boundaries and take time to separate ourselves from work. Opening a new practice takes a significant toll on you as an individual but can be so rewarding. In the same vein, it is critical to delegate effectively and identify what feels overwhelming.

Dr. Somenek reminded us that not everyone is meant to open their own practice, and that that is OK. Different structures work for different personalities or personal situations and being an employee may be a better fit for some.