There seems to be a huge amount of misinformation in regard to the medical profession. It seems like everyone thinks that being a doctor means that you will automatically be driving a Porsche and living in a country mansion suitable for the royals. Whether you are running an NHS clinic or have a private practice, you are met with financial concerns that the average layperson doesn’t understand. If you are seeking to build a lucrative medical practice, here are 3 financial concerns you should be aware of.
1. Insufficient Insurance Cover
It only takes one claim against your medical practice and any medical professional involved to quickly put you out of business, and make no mistake about it – medical practices are business entities. Many doctors buy the minimum cover allowed by law in an effort to keep operating costs affordable, but in worst case scenarios, that could be the beginning of the end. The truth is, there are more medical negligence claims than you may be aware of, and with insufficient cover, you can be held responsible to pay any amount that courts determine is suitable compensation. Always get sufficient cover based on recent outcomes within your specialisation of medicine.
2. The Rising Cost of Technology
There is also technology to factor into some of the leading financial concerns of today’s medical practices. Whether it’s Electronic Health Records, diagnostic equipment, wearables or the huge number of other technological advances, they all come at a cost. When you work within the NHS, some of those costs are factored in, but other times, you will need technology that you aren’t required to have, so footing the cost is all on you. To keep a competitive edge in any industry, keeping up with these advances is paramount to your success. The NHS is already operating at a deficit, so much of this technology will not be covered.
3. Competitive Salaries
What about overhead? Not only will you be paying rent or a mortgage loan for the property where your medical practice is located, but you will also be paying utilities and salaries as well. What many doctors have discovered the hard way is that their practice is often only as good as their staff. This covers everyone from front room receptionists to nurses, technicians and even the cleaning crew that comes in after hours. In order to keep the best team possible, the salaries you pay need to be highly competitive, and this is often a huge financial concern.
With insurance often being the biggest concern of all, there are many things that can quickly eat into your operating budget, and anyone who thinks that doctors make a small fortune is labouring under false impressions. Yes, it is possible to turn a tidy profit, but these financial concerns must be dealt with first. Take the time to compare insurance plans so that you have adequate cover, set aside a budget for advancing technology and set competitive salaries for your staff. They are the faces your patients will see, and they keep your practice alive and growing.
Get these three things right, and you will discover that your medical practice’s financial woes get that much lighter.