Whether you’re just out of medical school, chafing at the prospect of more time in a physicians’ group, or considering stepping out from your mentor’s shadow, the idea of starting a podiatry practice is enticing. But it also comes with several questions: how much does it cost to buy a podiatry practice? Or should you start from scratch instead? And in either case, what comes next? Since we’d like to see you succeed, Great Lakes Imaging has some simple pointers so you start on the right foot, from planning to sourcing the best podiatry equipment in Southeast Michigan.
Cost to Start a Podiatry Practice
Two caveats should be established upfront: first, the expenses listed below will, in many cases, apply to both new and legacy podiatry offices. Second, because costs can vary even within different neighborhoods in a city, to say nothing of variations between counties and states, what follows will be more of a checklist than a detailed by-the-numbers breakdown.
Now that we’ve cleared that up, let’s dive in.
Podiatry Practice Startup Costs
Your first question is your location, from which will stem the decision to rent, lease, or purchase a space for your new podiatry office. This can be as simple as sharing space within a physicians’ group, or the decision to find a space that is solely your own. In the latter case, you will need to account for demolition and construction if space requires customization. In either case, you will need to account for your costs for new podiatry equipment (which can be offset by purchasing used podiatry equipment instead) and for medical equipment installation.
Podiatry Practice Ongoing Expenses
Since most operating expenses are recurring instead of one-time, here’s where our list gets much longer. Your monthly revenue must account for each of the following:
- Student loans
- Payroll for yourself and your support staff, including assistants, a receptionist/office manager, and a biller
- Ongoing costs related to real estate, including rent, property taxes, and property maintenance
- Utilities, including electric, internet, and phone or VoIP
- Podiatry supplies
- Podiatry equipment maintenance
- Office and janitorial equipment and supplies
- Software (diagnostics, billing, and EMR)
- Insurance, including malpractice, liability, group health and life, workers compensation, and overhead insurance
- Marketing
- Collections and billing
- Professional dues
- Fees for licensing and hospital privileges
- Continuing education
- Phone and utilities
- Travel and transportation
- Legal and accounting
- Lab fees
Cost to Buy a Podiatry Practice
On paper, this will seem like the more expensive option, since the cost to buy an existing podiatry practice runs between six and seven digits in many areas, with established practices in desirable areas commanding high premiums. If you started in a partnership, you may well balk at the cost of a prospective buy-out.
But it’s important to consider the perks against those costs. After all, an established practice comes with several benefits attached. There’s an established clientele, which means your marketing spend is likely to be lower, and your trust in the community higher. The infrastructure and medical equipment you need is already in place, and while pieces may need maintenance, or may be replaced as they either age out or are supplanted by more advanced technology, there are significant savings here as well. And it’s worth remembering that market forces aren’t what they were a decade or two ago; “brand” loyalty counts for less since more and more patients are simply going where their insurance leads (or permits) them to go.
Podiatry Equipment and Supplies Near Detroit
There is, obviously, no one-size-fits-all answer; each individual’s needs, goals, finances, and risk tolerance will be different. There is, however, one constant: if your journey starts with Great Lakes Imaging, we’ll be alongside you each step of the way with podiatry equipment and supplies, maintenance and repairs, and valuable advice. Get in touch today!