Forming group practice can be incredibly rewarding, from both a business and a financial standpoint. By starting a group practice, you have the opportunity to create a work atmosphere that allows healthcare providers to thrive, be cared for, and feel good about the work they do. Building, growing, and managing a group practice requires a completely different skill set than managing your own solo private practice. With a bigger team, there are bigger responsibilities, not only you support a larger practice caseload, but you also support your staff and their needs. If you are interested in forming group practice, then you have to evaluate whether it’s the correct way for you.
Is Forming Group Practice is Correct Way for Me?
Answer your own ‘Why?’
Before you start understanding practical challenges for forming group practice, try to answer your own ‘why?’ Try to answer why you want to run a group practice. Or why do you want to be part of a group practice? A deep understanding of your ‘why’ will bring your expectation to reality, ultimately reducing your further efforts in forming group practice. It will help clarify whether this is a good idea for you to pursue at this time, and also help you keep going when the day-to-day business management gets tough. Some of the common reasons healthcare providers form group practice are, to increase earning potential; to serve more people in the community; to collaborate with industry experts, and to have diversity of work.
Are you ready for managing group practice?
Try to have a realistic understanding of managing a successful group practice and ask yourself if you will enjoy the work. Any healthcare provider should focus on having ‘realistic’ expectations because it’s a lot of work than you imagine. While administrative work will eventually be delegated to an office manager, you will likely be the one doing all of this at the beginning. Even though financially you can afford to have an office manager at the beginning, it’s advisable to do it by yourself to set up the systems. Talk with others who have started group practices and hear what their experiences have been like to get fuller pictures and make an informed decision as to whether the day-to-day of managing a group practice appeal to you.
Is it financially beneficial?
Ask yourself the most practical question, is it financially beneficial? Adding more providers means seeing more patients and will add more profits. While that is true to some extent, it’s also important to consider the administrative costs that lower each of your providers’ return on investment (ROI). Finding a balance is important to building a sustainable path to growth. While thinking about profits consider expenses like office space, payroll costs, legal and accounting costs, marketing expenses, billing tools, and many others. Your primary motivation may not be to earn more profits but this evaluation will ensure that your practice will be financially sustainable for a long time.
Which business model you are considering?
You can sublet or shared office space or hire providers. Each comes with its own pros and cons, so it’s important to weigh these options. When you sublet or share office space, every provider pays for the administrative costs, including rent. In the contracted providers’ structure, you write out a contract that explicitly states how much money the providers will make. If you take any provider on payroll, then you have to manage their salary and benefits, regardless of how many clients they see each week. It’s advisable to consult with a legal advisor familiar with healthcare practices before setting up your business.
What’s your vision?
It’s time to think about how your group practice would look like. You can ask yourself some the questions like, what is a unique service you are offering? Do you have a personal mission statement applicable to the group mission? What kind of providers you will be adding to your group? And what kind of experience and unique skills they will be bringing? What’s your role in managing newly formed group practice? Thinking through these questions will help you brainstorm the possibilities for your group practice.
Medical Billers and Coders (MBC) is a leading medical billing company providing complete revenue cycle services. We shared this article on forming group practice, through our understanding of a medical billing company. Providers are advised to consult a legal advisor specialized in this area. Whether you are running a small practice or thinking of forming a group practice, assign your medical billing responsibilities to a billing expert.
Whether in-house or outsourced billing experts will guide you through various payer contracts and billing guidelines. If you need cost-effective and customized billing solutions, contact Medical Billers and Coders (MBC) at: email@example.com or call us at: 888-357-3226.