Opening your own medical practice: Five strategies for success
Opening your own medical practice can be daunting. Where will you practice? With which payers will you go in network? What electronic health record (EHR) and practice management system will you use? How will you attract and retain patients?
These are a few of the many questions you’ll need to answer as you go about setting up a medical practice. This article gives physicians, including solo practitioners, five tips for starting a private medical practice and maintaining a successful business in the long run.
1. Choose your location wisely. Are you thinking about opening your own medical practice in a city already saturated with physicians? If so, could you consider a location in a less saturated area so the demand for your services may be greater? Take a look at payer websites or Zocdoc to get a sense of your competition.
When thinking about how to start a private practice, you’ll also want to choose a location that has good visibility such as an office located on a major road or in a busy shopping center. Being near public transportation is also helpful. Opening a medical practice with free, off-street parking is always a plus, especially for patients who are elderly, injured, or disabled.
2. Create a marketing plan. Starting a solo medical practice begins with this step: Register and update your medical practice on these websites: Google My Business, Facebook, association-specific directories, Healthgrades, local business directories, Vitals, WebMD, and Yelp. You may also want to invest in search advertising, which is a text-based ad (e.g., Google ads) that appears at the top of search engine results when a user searches for relevant terms (e.g., internist near me). These ads are usually ‘pay per click’ and don’t require a significant financial investment.
As a new physician, you may also need to get out into the community and network with others. This includes other physicians and the community at large. For example, if you’re a primary care physician, provide a free talk about losing weight through diet and exercise. If you’re an endocrinologist, provide a free class on living with diabetes. Use these physician and patient engagement opportunities to subtly advertise your own services.
Finally, be sure to create a website for your medical practice that explains who you are, the diagnoses you treat, and basic information about the practice (e.g., hours, location, insurance plans that you accept). Your website is also a great place to focus on what sets you apart from competitors in terms of patient engagement. For example, is yours one of only a handful of medical practices that offer early morning and evenings hours or even weekend hours? What about telehealth? Do you offer fast and easy check-in via kiosks, online bill pay, and patient portals? Build a case for why patients should choose your medical practice over others.
3. Weigh insurance options carefully. First, determine which insurance panels are open to new providers. Then look at each contracted rate. Is the rate at least 100% or more of Medicare? Also consider each payer’s market share. With which insurance companies do the largest employers in your area contract? Consider asking colleagues for input. Are certain payers more difficult to work with? Do some insist on a particularly onerous process for prior authorizations? Once you’ve made some decisions, be sure to focus on accurate credentialing so you’ll be paid correctly.
4. Reduce your administrative burden. Forty-two percent of physicians say they’re burned out, and physician documentation is a major cause. In fact, physicians say they actually spend 4.5 hours per day documenting in the EHR. To reduce physician burnout, focus on ways to boost your efficiency such as electronic prescribing, specialty templates, health information exchange, and MIPS-certified electronic medical records management software. A full integration between your practice management and EHR systems is also paramount.
5. Hire carefully. Healthcare employee turnover is costly, and it’s an expense you can—and should—mitigate as you’re trying to grow your business. For this reason, it might make sense to consider outsourcing these two critical functions: Revenue cycle management (RCM) and/or information technology (IT) services in the short- and long-term. Outsourcing can help you focus on building your medical practice rather than navigating the uncertainties associated with the current labor market. Outsourcing also gives you access to specialized knowledge. For example, RCM outsourcing means you’ll gain valuable insights into denials that can cost your practice revenue. A trusted RCM outsource partner can also help you identify ways to increase practice profitability. IT outsourcing ensures ongoing cybersecurity monitoring during a time when ransomware groups have become increasingly aggressive. By outsourcing both of these critical functions, you can focus on your patients and providing high-quality clinical care.
Conclusion
Opening your own medical practice requires planning and preparation. However, the right technology can set practitioners on a path for success. Learn more about how edgeMED can help.
