Healthcare
Keep your practice healthy.
Nobody goes into a healthcare profession because they want to run a business.
Yet many practitioners of all descriptions find themselves doing just that. For providers of specialty services – such as oral health or anesthesia – starting their own practices is often the best way to a secure financial future. But even employment in a larger healthcare organization requires a certain amount of financial savvy that wasn’t in the curriculum at medical or dental school.
Key Considerations
Costs.
Healthcare practices are notoriously expensive to set up and operate. They typically require specialized equipment and supplies, skilled staff, rigorous cleaning and waste management protocols and extensive risk management and insurance packages. Staying on top of these costs – and potential opportunities for reducing them – is essential for long-term success.
Cash flow.
Like every other business, healthcare practices require a steady income stream to survive, much less thrive. However, healthcare is subject to a unique payment structure in which the purchaser of the service or care is often not the one who pays for it. Both private and government-operated insurers can take a significant amount of time to approve and process payments, and sometimes this requires a lot of back and forth. Additionally, while recipients of care are sometimes responsible for full or partial payment, obtaining it can be a time-consuming process.
Compliance.
While healthcare providers are subject to many layers of compliance – from standards of care through processing claims for payment through handling of potentially hazardous materials – we’re talking here about financial and tax compliance. This isn’t necessarily complicated, but it does have some nuances, like understanding that taxes may be payable on both individual and entity levels, depending on how the practice is organized and the professionals paid. There are also pretty strict rules for depreciation of medical and office equipment, which must be followed to avoid penalties and realize maximum return on investment in these items. And that’s just scratching the surface; add in things like payroll, employee benefits and retirement plans, and you have a lot more to worry about.
Singer & Falk has extensive experience advising healthcare professionals in a wide range of specialties and at various points in their careers.
We collaborate closely with our clients to set up and sustain their practices, from the moment they open their doors to the point when they sell or merge and, ultimately, to retirement and beyond. We help guide critical decisions such as when it makes financial sense to go solo instead of remaining an employee of a larger organization, whether it’s more beneficial to purchase or rent real estate, how best to structure compensation and benefits for both principals and employees and numerous other issues. Our clients rely on us to help them keep an eye on expenses and develop strategies for coping with the inevitable fluctuations in cash flow. We also assist in facilitating the sale, purchase and merger of healthcare practices. In most instances, we are able to build consulting into our projected fee, so you won’t have to worry when you have a financial or business question or need to augment your expertise with ours.
Contact us when you want to give your practice – or career – a thorough financial checkup.
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