Education
OVERVIEW: Jason A. Duprat, Entrepreneur, Healthcare Practitioner and host of the Healthcare Entrepreneur Academy podcast talks about the costs of launching a practice. Drawing from his own experience, he shares the primary costs to factor in and why you should consider the Lean Startup method. EPISODE HIGHLIGHTS: Clinic location will impact rent and insurance costs. The type of practice will dictate the level of equipment needed. Payroll considerations should include if you need to hire part-time staff or if you have family helping you, hours of operation and volume of business. It’s more cost-effective to rent space instead of constructing a new clinic. Consider what comes with the space like hand wash sinks, paint, room layout, flooring, lighting, ADA accessibility and storage. Think about equipment and furniture expenses, as well as rent and deposit costs. Also, consider medical supplies. Jason recommends only ordering 1.5-2 weeks out to start. Consider all types of licenses like DEA and business licensing, as well as malpractice and liability insurance. Jason suggests consulting with an attorney and a CPA as part of your professional service startup costs. Keep in mind marketing costs for business cards, building a website, postcards or direct mail pieces, printed promotions and paid advertising like Facebook ads. Lastly, budget for utilities such as electric, water and cable, as well as disposal of sharp and hazardous waste. Jason opened his first clinic for under 15k. He suggests making little purchases over time to avoid large cost accumulation. Go lean and start small - grow into your practice. It’s too easy to get into a financial hole if you go all-in by purchasing a large space and hiring a big team. Jason is an advocate for the Lean Startup method. He opened his first practice with an 800 square foot space and a short-term lease. Smaller practices can be lucrative, especially if they offer self-pay services such as direct primary care or ketamine infusion. You don’t have to accept insurance when you open a practice. Reimbursement costs average 85% plus you can pay 3-7% on gross receipts to billing companies. If you choose self-pay services, you’ll need to market yourself and your practice. Be clear on scope of practice, create a baseline business plan, forecast revenue and track expenses. Jason is developing a new online course to teach healthcare practitioners how to open and launch a self-pay practice. 3 KEY POINTS: Key factors impacting the cost of starting a practice are location, type of practice and payroll. Typical startup expenses can be broken down into construction, equipment, furniture, office space, medical supplies, licensing, insurance, professional services, marketing, utilities and hazardous waste disposal. If you’re willing to change your mindset and invest in marketing, self-pay practices can be very profitable. TWEETABLE QUOTES: “Do little expenses over time.” - Jason Duprat “Start small and grow into your practice.” - Jason Duprat RESOURCES: HEA Facebook Group for Digital Businesses: https://www.facebook.com/groups/HeathcareEntrepreneurAcademy/ HEA Facebook Group for Bricks & Mortar Businesses: https://www.facebook.com/groups/HealthcareEntrepreneurAcademyBrickandMortar/ #HealthcareEntrepreneurAcademy #healthcare #entrepreneur #entrepreneurship #podcast #startup #openyourownpractice #startupcosts #leanstartup #scopeofpractice