Starting a medical practice has never been easier. Practice Setup LLC offers a complete line of services to see your project through from budget and financing to opening the doors on your new facility. We understand the difficulty in maintaining your practice while starting a new medical practice. At Practice Setup LLC, we manage your project so you can manage your practice.
All medical practices need a business plan.
Medical Practice Management Services
Financial Analysis and Pro-Forma Statements
At Practice Setup, our team of professionals assists each physician in developing a comprehensive Pro-forma Financial Analysis which provides the most critical tool for your company’s future—a strategic financial plan.
What are Medical Practice Pro-Forma Financial Statements?
Since a start-up medical practice has no historical financial information, simplified Pro Forma’s are estimated statements that are typically projected for 3 years. They demonstrate the best case, worst case and most likely financial scenarios of a new practice, clinic, healthcare entity, etc. Computerized spreadsheets are ideal for this task. Other relevant financial information may be included, as needed.
Net Income (Profit and Loss) Statement
By allocating a practice’s profit or loss into operating groups, banks or investors can isolate profitable revenue centers and isolate unprofitable costs drivers. In certain managed care contracts, an analysis to identify unit or per dollar revenues, gross profits and/or gross margins, is vital. Other non-cash expenses (i.e., depreciation, amortization and deferred taxes) are then deducted from revenues to determine overall net income. All is included in the income statement.
Cash Flow Statement
The Statement of Cash Flow (SCF) projects estimated cash flows by month, quarter and year, along with the anticipated timing of cash receipts and disbursements. The office’s bills and obligations are paid out of cash flow, not net income. It is very important for accrual based accounting practices; especially in terms of Medicare, Medicaid, MCOs, PPOs and HMOs producing insurance payment time delays and other aged accounting methodologies. Cash flow reflects the internal generation of fund available to supply operating capital.
The Balance Sheet (BS) forecasts the financial condition, assets and liabilities, of an office at a singular point in time. It projects the ability to meet financial obligation and the capacity to absorb financial setbacks without becoming insolvent.
Statement of Retained Earnings
This is a fourth new financial statement, but it is not usually a pro-forma statement since little cash is generated from a new medical practice.
Our CFO will typically create the above statements for a start-up medical practice and continue with the mature business entity.
Project Budget and Financing
When considering the development of your new medical facility, the most costly, construction costs will be the largest capital cost and represent the largest portion of the financing for the project. If the facility is financed by a loan which must be repaid over a period of years, the amortization of the loan and the interest will also represent a large part of your recurring costs.
It is therefore critical that you assess the impact your construction program will have on both your short and long-term financial objectives, and that you don’t construct a facility so large that it will sap the profitability of the center. It is also important that you understand the complexity of building such a center. At Practice Setup, we have seasoned and knowledgeable professionals to help each physician understand the complexity of the proposed project and keep expectations and reality in check.
Within the Practice Setup Team, we have both bankers and financial analysts that take the physician thru the financing process. Whether the physician would like to work with the larger institutions, like Bank of America or Wells Fargo, or smaller local banks, or even the Federal side (SBA), Practice Setup will help with the step by step process to insure the physician will spend more time growing their practice and less time fighting their way thru the paperwork.
Office Location Services
Finding your office can be a daunting task. The real estate professionals procured by Practice Setup Team specialize in physician start-up offices and re-location services. Choosing the right location at the right price with the right terms should be left to the experts who know how to not only negotiate the terms, but understand medical requirements, construction, parking needs and local zoning ordinances. They will also work with the team architect to insure your choice will not be “too big or too small” and will fit your future needs.
Architecture and Interior Design
Based on an evaluation of your needs and budgetary requirements, our brokers produce three to five prime sites in your target areas—containing information on traffic counts, photos, locations of competitors, environmental reports and details on leases and/or purchase options. Experience is the key.
General Contractor Negotiations
Choosing a General Contractor (GC) is the next step after the architect provides the plans. Practice Setup narrows the selection to two-three GCs and works with the chosen GC to manage the project from start to finish.
At Practice Setup, we suggest each physician begin the credentialing process at the very start of the project as it takes months. Our team will begin to do the following to insure that the physician is ready when the time comes to open the doors for business.
- Gathering information about a doctor’s background and qualifications through a formal application process as an address and phone number are requirements
- Checking the background information for completeness and accuracy against reliable sources, including the National Practitioner Data Bank and the American Board of Medical Specialties
Marketing a Medical Practice
The process of choosing a physician has changed. People now pick doctors after extensive research on the internet, via word of mouth, or from direct recommendation from their primary care physician. People are willing to travel to get the best care possible.
Practice Setup identifies marketing professionals that understand SEO (Search Engine Optimization), social media, and grass roots marketing-all necessary to start and build a successful medical practice. Your brand awareness will increase dramatically with a brand that resonates through your logo, business cards, brochures, advertising, press releases, and media exposure- all hallmarks of a good marketing campaign.
Payroll and HR
Outsourcing the non-productive parts of your practice is one of the tenets of a good business plan. Practice Setup believes that payroll, human resources, benefit administration, legal compliance and workers compensation are all functions that work best when handled by professionals that focus on these components. The physician can concentrate on customer care.
Revenue Cycle Management
Whether your revenue cycle management consists of a conventional in house billing system or a third party web-based medical billing company, Practice Setup helps you diagnose the best alternative to achieve increased levels of income. We understand the dynamics of making informed choices in billing, coding and collections. Putting these processes in place will set you up for a successful practice.
Medical Equipment and Office Furniture
Medical equipment that encompasses the needs of your specialty and facility is essential to your practice. The top three national medical equipment supply houses provide an inventory of what your location needs-from band aids to MRI machines. With on-line ordering and personalized door-to-door service, your practice will have the advantage of their expert guidance and turnkey solutions that will meet your budget.
Your office furniture is your environment and should reflect the personality of your practice. Practice Setup takes the time to get to know each client personally and then matches them with a national furniture provider. The design team researches the best designs to provide an office that is both healing and productive.
Medical Staffing Services
Often, a physician will recruit staff from their previous employment and start their new practice with those individuals. When a practice needs additional staffing, Practice Setup will research the local market for talent, pre-screen resumes and set up interviews. Qualified candidates are quickly identified to meet the job functionalities of the provider. The difference between under or over staffing an office can determine the profitability of your business.