Gone are the days when gynecologists could simply hang out their shingles and declare their new practices open. Today, starting a private practice requires physicians to plan ahead and consider many challenges, including developing an effective revenue stream, setting up health insurance and coding processes, and building a marketing strategy to attract patients.
Why Start a Private Practice?
Starting a private practice offers gynecologists the freedom to be their own boss and develop innovative ways to make money. According to a 2017 American Medical Association report, only 47 percent of physicians in the U.S. had ownership in a medical practice in 2016, down from about 52 percent in 2012. However, 58 percent of physicians reported that they worked in small practices, defined as those with 10 or fewer doctors, and 56 percent worked in practices owned solely by other physicians.
These numbers suggest that there is growing opportunity for gynecologists to build their own businesses from the ground up. It's not easy, but those who take the time to create well-balanced business and marketing plans have a greater chance of success. Below are three important considerations for physicians when considering whether to start a private practice.
1. Create a Strategic Business Plan
The business plan should state clear goals and outline methods to meet those objectives. Practices that include more than one physician should consider hosting a retreat to create shared principles, values and practice management norms, according to Contemporary OB/GYN. The American Medical Association offers resources to help physicians build their practice management skills.
Physicians running a private practice may have to make a few outside hires to help their business successfully get off the ground. They can start by hiring a professional practice administrator to manage day-to-day operations. It's also important to appoint a medical director with a background in, or the desire to take courses in, the business of medicine.
The Contemporary OB/GYN article advised private practitioners to avoid promoting an administrator from within, unless that candidate has a strong business background and relevant expertise. Finding the right person for this position could make the difference between an efficient, successful business and a disorganized practice with few patients.
2. Develop a Marketing Plan
Today, marketing goes way beyond print advertisements and physician directories. Potential patients — especially millennials — will likely turn to another practice if they can't find information about a physician or practice online. Savvy practitioners who embrace the new landscape of digital and social media can improve their chances of success.
For starters, an easily accessible website is a must. Consumers today do an online search before purchasing anything, including healthcare. In fact, 72 percent of internet users said in 2013 that they had looked online for health information within the previous year, according to Pew Research Center. Furthermore, 35 percent of U.S. adults said they had searched online specifically to try to diagnose a medical condition.
Patients want to develop trusting relationships with their gynecologist, and social media opens that door. Physicians can market their practice to potential and existing patients through blogs, Facebook posts, tweets and more. According to Physicians Practice, private practitioners should set social media goals and identify the "ideal patient" to target with marketing efforts. They might consider appointing one person in the office to maintain the practice's online presence or even hiring a dedicated social media manager to focus on these goals full time.
Compared to the average business owner, physicians need to follow a few additional social media guidelines. For example, they must take steps to protect patients' identity and follow HIPAA guidelines when communicating on social networks. Additionally, they should be careful not to offer medical advice online.
Given these restrictions, it's critical to establish a few ethical ground rules when creating a marketing and social media plan. The American College of Obstetricians and Gynecologists offered guidelines to help private practitioners market their business effectively without resorting to "misleading, deceptive or discriminatory" tactics.
3. Find Your Uniqueness
Practices need to find ways to stand out. Physicians should discover what makes their practice unique, and demonstrate how it can offer benefits and resources prospective patients can't find elsewhere.
A 3D ultrasound system can help a private gynecology practice separate itself from the pack. This technology enables patients to avoid invasive procedures and alternative costly exams. It also allows physicians to examine areas that were previously unavailable with 2D imaging, such as the coronal plane and pelvic floor. In one study published in the Journal of Obstetrics and Gynaecology of India, 3D ultrasound had nearly a 100 percent diagnosis rate for congenital uterine anomalies when compared to magnetic resonance imaging (MRI) and laparoscopic procedures.
Other innovative options include offering concierge fees that come with extra perks, participating in or recruiting patients for clinical trials, and renting out part of the office space to other small businesses.
Boost Your Chances of Success
Starting any new business requires time and effort, but given the high stakes of patient care, the strict regulatory environment and the competitive healthcare market, opening a private medical practice is an entirely different beast. Physicians who develop a detailed business plan, create a strong social media presence and carve out their own unique niche within their field can dramatically boost their chances of success.
