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Loans to Start a Private Practice (Immediately Following Training)

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  • Dermonc
    replied
    People in medicine are generally risk averse so you will have many nay-sayers if you start your own practice. I went solo immediately out of training and am doing well financially. Contact your local small business development center for help regarding writing a business plan and securing a loan when you figure out where you want to locate. It’s a government program with free small business advisors who help with these questions. Funding is typically secured through small regional banks, you can try your best at larger banks like Bank of America but many large banks will not want to loan to an unproven resident. I wasted my time with BoA for a few months before switching to a local bank which was able to get me a loan fast.

    There will be a few months delay from start up until you have enough revenue to pay yourself any reasonable salary. I would keep costs as low as possible initially and expand organically.

    Leave a comment:


  • Savedfpdoc
    replied
    Go for it!! I’m primary care but I am employed and being employed is not fun to say the least.
    for any business it’s important to stay lean and grow only when needed. There’s other opportunities to pick up side income while you do this also. I think you’ll be happier from day 1. The large healthcare companies prey on our fear to do this that’s why most of doctors are owned by hospital admins who were out sunbathing on the quad during college while we were looking from the library window.

    Leave a comment:


  • AR
    replied
    There was a really good blog by an ophthalmologist who started his own practice right after residency and documented his challenges along the way. I'll look for it when I have time and post if I find it.

    EDIT: I'm pretty sure it was by the guy chocolatebear is referring to above.

    Leave a comment:


  • Oncogene
    replied
    I agree with what people have said here. A few of my mentors have also been telling me the same things. Taking out personal loans to do this is too risky. I'd recommend finding a hospital to financially support your first year if possible.

    Leave a comment:


  • Oncogene
    replied
    I am trying to do what you are doing. I have about 3 months of fellowship (orthopedics) left. Lets connect. Will PM you.

    Leave a comment:


  • privatepracticejourney
    replied
    Thanks to everyone for all your input. It is very much appreciated.

    Leave a comment:


  • Tim
    replied
    Search in advanced search on the forum: “practice start” in titles only.
    https://forum.whitecoatinvestor.com/...-solo-practice

    The best mentoring is people that have been through it. There is a blog article as well. Sooo many things in common in a practice besides specialty. Website, accounting, leases, used equipment, computer setup, insurance, office staff, payroll etc.

    I strongly suggest cast a wider net. There is tuition to be paid for startup costs. DIY mistakes are costly. Just the location selection and lease is hard to do. Demographics, marketing, competition and any referrals takes time and expertise.

    First mistake: Looking for an ophthalmology startup with a planned deadline. Practice startup tasks and an project management plan with tasks and hours cost estimates. I have no clue if you have enough hours or resources to outsource before you even get to a point to get any funding let alone a successful launch.

    There is a tuition to be paid in starting up a practice, solo, group or employed. Good luck.

    Leave a comment:


  • DollaDollaBillS$$$
    replied
    Originally posted by privatepracticejourney View Post
    I have decided to go the private practice route immediately following training (two years to go). I'm currently in the process of scoping out undersaturated areas of the country.

    I am in ophthalmology and a new practice requires a considerable financial outlay for equipment. My main question is about funding: does anyone have any advice for me as far as funding goes? What is the process for obtaining a loan to start a practice? What are the best funding sources? I understand that I will need to write a business plan: does anyone have a good example of one they could share with me?

    Any and all insight about acquiring a loan to start a practice immediately following training would be very much appreciated. I plan to decide on a location in the next six months, and I want to begin scoping out office space and processing all of the paperwork for the practice a year out (acquiring a medical license in the new state, registering with insurance companies) so that I can see my first patient only a short time after completing training.

    I would be incredibly grateful for any advice that you might have!


    contact live oaks bank. https://www.liveoakbank.com/ they do a lot of sba loans for healthcare practices. if nothing else, they should have a department that can give you some advice to guide you on the process.

    Leave a comment:


  • nephron
    replied
    I agree with the advise of taking a employee job before trying to open your own practice. New graduates have enough to learn with the nuances of billing and practicing medicine without having to worry about figuring out how to hire, make payroll, lease an office, equipment, etc. Too many unknown unknowns for my comfort level. 1-2 years to build a small start up fund is not unreasonable.

    Leave a comment:


  • chocolatebear11
    replied
    Hi,

    I would post your on SDN ophthalmology. Dr. Choi has a blog on opening solo right after training and frequents the site.

    his website is : https://solobuildingblogs.com

    he also has a google group of other Ophthalmologists went solo.

    definitely takes work, but seems more ophthalmologists are advocating for it.

    Leave a comment:


  • DavidGlennCPA
    replied
    You're just training on the technical side of your field right now. When you finish training, you will not be fully trained on the business side.

    I'd think very carefully starting off by spending hundreds of thousands of dollars to start a practice you lack the business skills to run properly. Ophthalmology has some of the highest capital costs I've seen among the various specialties to start a practice from scratch which makes it all the more risky.

    Work for a private practice learning the business side before venturing out on your own.

    Leave a comment:


  • Tim
    replied
    Originally posted by privatepracticejourney View Post
    Thank you all so much for your comments so far. I realize that the answer to the funding question might not be very simple.

    That said, any resources, templates, or input about writing a business plan for a medical practice would remain highly appreciated.
    https://www.orba.com/elements-medica...business-plan/

    Not affiliation, courtesy of my Google MD certificate? I really wish you luck. Trying to do multiple things at once is extremely difficult. Just getting signed up for insurance coverage might be critical. Opps, crappy reimbursement alone would shut off the revenue streams even if you got the volumes of patient calls. Why would any insurance company put you in network if they already have plenty of coverage (could be one hospital system). Huge task all at one time. It takes working capital and startup costs out of pocket, not loans. Not meant to discourage you, more avoiding problems.
    Not a physician, but it is what it is.

    Leave a comment:


  • privatepracticejourney
    replied
    Thank you all so much for your comments so far. I realize that the answer to the funding question might not be very simple.

    That said, any resources, templates, or input about writing a business plan for a medical practice would remain highly appreciated.

    Leave a comment:


  • Random1
    replied
    I would highly recommend against doing this. Work for a hospital or some other doctor widget factory first. Learn how to be a doctor, how to bill and how to run a practice, employees... Then start your own practice. This way when times get tough, you first gut reaction won't be to sell to private equity.

    Leave a comment:


  • Tim
    replied
    The problem is that the risk involved is substantial. Lenders evaluate risk based on a combination of income and assets pledged as security.
    Financing is going to be a huge problem. No income track record and "used assets" are obstacles. You may get a hospital that will help fund if you actually will feed business to them. Local bank is your best option.
    The reality is a fresh graduate is learning to run a practice, learning to run a business and trying a fresh start-up all at the same time. No easy solution.

    Leave a comment:

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