CRAFTING A BUSINESS PLAN AND STARTING A MEDICAL PRACTICE
[Understanding Business Models, the Entrepreneurial Spirit and Obtaining Capital]
By David Edward Marcinko, Hope Rachel Hetico and Rachel Pentin-Maki
It’s not the plan that is important, it’s the planning – Dr. Graeme Edwards
Introduction
The business plan is a key tool for raising start-up capital for a new medical practice or a service line extension for a mature one. It is also used for acquiring loans to finance growth of an existing practice. Although long recognized as a quintessential business tool, its formal structure and mental rigor are only now being recognized in the medical community as competition increases in the healthcare industrial complex.
There are many reasons to write a medical practice business plan. The process of gathering, compiling and analyzing information is an invaluable experience to the beginning practitioner or experienced veteran. Some specific reasons for writing a plan are included below:
More here: BOOK ORDERS [Pre-Release]: http://www.springerpub.com/shoppingcart
Dictionary of Health Insurance and Managed Care: http://www.springerpub.com/prod.aspx?prod_id=49944
Business of Medical Practice 
http://www.SwiftMD.com
On Non-Emergent Telemedicine
Telemedicine may be touted as better than traditional non-emergent medicine because of quality.
Patient telephone calls are returned within 30 minutes, any time of the day or night.
One may use an eHR that is secure, HIPAA-compliant and keeps patients informed about their consultation, diagnoses, care, recommended treatments and second opinion confirmations.
Thomas
On Starting a Micro Medical Practice
http://www.mbahealthgroup.com
The concept of a “micro practice” is based on simplicity. A true micro practice allows a physician to practice medicine with only a fraction of the business expense and overhead. A physician can run the practice with literally no staff.
So that means you, the physician, are really running the show. Business expenses and overhead are low because there are only one or two exam rooms and no staff. Micro practices are typically fully electronic, utilizing both eHRs and practice management billing solutions.
Dr. Marcinko
On medical building facility fees:
http://healthcarefinancials.wordpress.com/2008/03/21/medical-building-facility-fees/
Dr. Marcinko
Learn about Patents, Copyrights, Logos, Trademarks and Intellectual Property, etc
http://www.learnaboutpatents.net/
Beth
Do you Need Money to Start or Grow Your Medical Practice?
Requesting a business loan without adequate preparation sends a clear message to the bank or lender: High Risk! Especially, in times of tight credit; like now!
Therefore, it pays to be prepared and organized in your approach for financing. This means crafting a well constructed business plan created from the lender’s perspective; and complete with:
Executive Summary: Where you concisely state the purpose of the loan, the exact amount of money required, an explanation of what the loan will be used for and why it’s needed.
Pro-forma Cash Budgets and Financial Statements: Use your data and underlying assumptions to prepare information that your banker can easily read and buy into.
Doctor’s Personal Financial Statements: Using copies of the last 3 years of personal tax returns for the bank as well as identify the collateral being pledged as security for the loan.
Representation: Here is where a medically focused CPA – and this book – is invaluable.
Dr. Gary L. Bode; CPA, MSA, CMP
Medical Practice Business Planning, Marketing and Health 2.0 Advertising That Grows Your Reputation
and Your Bottom Line
Done properly, ethical medical practice business planning, and related healthcare marketing concepts can grow your practice profits, attract the patients and cases you want, build your reputation and even enable you to have a life again. This book and chapter reviews modern results-based medical marketing. It is aimed at medical, dental, podiatric, and chiropractic practices — related clinics and more.
The chapter also looks at business plan creation and practice marketing planning, medical advertising agencies and services, online marketing and creative services – like ads, brochures, copyright, franchises, trademarks, websites, logos, etc.
And, our growing influential blog: http://www.MedicalExecutivePost.com also provides free posts, comments, essays, links, expert advice, and more!
Hope Rachel Hetico; RN, MHA
[Managing Editor]
Follow this link to find forms, checklists and spreadsheets useful for starting up and managing a medical practice.
http://www.rtacpa.com/healthcare-resources/forms-and-checklists.html
Grace
For a practice management software buyer’s guide:
http://www.softwareadvice.com/medical/practice-management-software-comparison/
Chris
A new study in the American Journal of Infection Control shows that over a four-month period in 2009, hundreds of Twitter users posted casual misinformation about antibiotics — which, in turn, reached more than a million of their followers.
http://www.ajicjournal.org/article/S0196-6553(10)00034-9/abstract
http://abcnews.go.com/GMA/OnCall/tweeting-medical-misinformation/story?id=10234917
So, please be careful out there.
Ann Miller; RN, MHA
[Executive-Director]
Medical Practice Business Planning Sources and References
a. Baxter, Catherine S. CMT. (ed.) “Stedman’s Medical Equipment Words.” Williams and Wilkins, 1992. 351 West Camden Street, Baltimore, MD 21201; (800) 527-5597.
b. Garrett, Heidi M. Siegenthaler (ed.) “Medical Device Register 1994: the official directory of medical suppliers (2-volume set).” Medical Economics Publishing, 1994. Five Paragon Drive, Montvale, NJ 07645; (800) 722-3062.
c. Executive Office of the President, Office of Management and Budget. “Standard Industrial Classification Manual.” National Technical Information Service. 5285 Port Royal Road, Springfield, VA 22161.
d. Hensyl, William R. (ed.) “Stedman’s Medical Dictionary 25th edition.” Williams & Wilkins, 1989. 351 West Camden Street, Baltimore, MD 21201-2436; (800) 527-5597.
e. “Market Research Handbook.” (annual) Richard K. Miller & Associates, Inc. 5880 Live Oak Parkway, Suite 270. Norcross, GA 30093; (770) 416-0006.
f. “The Official ABMS Directory of Board Certified Medical Specialists.” (annual) Marquis Who’s Who. Reed Elsevier, Inc. 121 Chanlon Road, New Providence, NJ 07974; (908) 464-6800.
g. Scott, Walter L. (ed.) “Medicolegal Glossary.” Medical Economics Publishing, 1994. Five Paragon Drive, Montvale, NJ 07645; (800) 442-6657. http://www.medicaleconomics.com.
h. Wolfe, Sidney, M.D., Mary Gabay, Phyllis McCarthy, Alana Bame, and Benita Marcus Adler 13,102 Questionable Doctors Disciplined by the states or the federal government (3-volume set). Public Citizens’ Health Research Group, 1996. 1600 20th Street NW, Washington, DC, 20009; (202) 588-1000.
i. “U.S. Medical Licensure Statistics and Current Licensure Requirements.” (annual) American Medical Association, Department of Database Products. 515 North State Street, Chicago, IL 60610; (800) 621-8335
The End
Ideal Medical Practices?
Effective, comprehensive primary care is the foundation of high performing health systems.
This new multi-contributor blog addresses effective, comprehensive primary care and how we might create a policy environment that truly supports effective, comprehensive primary care.
http://idealmedicalpractices.typepad.com/ideal_medical_practices/
Micro Medical Practice versus Multi-Million Dollar Enterprise
Check it out.
Joseph
[Office Manager]
CHARACTERISTICS OF A PHYSICIAN ENTREPRENEUR
• Intensely driven by a vision, although pragmatic in planning how to embody and nurture it
• Ineffective delegator
• A generalist who doesn’t hire experts to “fill in” when expertise is crucial
• Optimistic about the future—even in the face of pending disaster
• Impatient and heavily into control
• Denies own mortality
• High energy level with short attention span
• Best absorbs information in short bites
• Demanding of others and of self
• Suspicious of “consultants,” but accustomed to paying professional fees
• Not comfortable telling anyone what he or she doesn’t know or understand
• Relies on referrals from business associates or friends to find “right” service providers
• Finds it hard to let go of business and retire
• Has few hobbies outside of business/practice
• Business becomes alter ego
• Has little time to spend on “personal stuff”
• Great at starting a business but not managing it – should be the CVO rather than COO or CEO.
Dr. David Edward Marcinko MBA CMP™
http://www.CertifiedMedicalPlanner.com
[Publisher-in-Chief]
On Medical Practice Brokers
It may be helpful to use a medical business broker to find your dream practice but it’s important to remember that unless you’ve hired the broker, s/he represents the seller of the practice. So, as the potential practice owner, you too require a financial or management consultant to represent your own interests. Of course, brokers are also a great source of information on current market conditions, issues related to pricing and financing, and many other facets of the practice buying process.
So, if you’re selling a practice, a broker may bring more prospects to your practice than you might on your own. They’ll also separate the buyers from the lookers, and usually get you a better price justifying their commission fee. Brokers who work with appraisers can help you price your business properly [beware of self-dealings], tell you how you can make it more saleable, and serve as a resource throughout the sale [Michael Cargile MD, personal communication].
Dr. David Edward Marcinko MBA
http://www.BusinessofMedicalPractice.com
[Editor-in-Chief]
The Best States in which to Practice
Whether you’ve just finishing up residency, are an established physician considering a move, or you just want to know how your state stacks up against the rest, Physicians Practice (PP) gathered all the relevant information to help enlighten you.
http://www.physicianspractice.com/best-states-to-practice/content/article/1462168/1945074
Ann Miller RN MHA
This a good post especially to us medical practitioners. I believe it will be a success someday.
Genuinely when someone doesn’t be aware of then its up to other visitors that they will help, so here it happens.