Speaker 0: 0:26

Hey everyone, dr TJ Ahn here. Let me ask you something. Are you tired of working crazy hours for someone else? Because today I'm going to show you exactly how doctors can build a business that gives them control over their life. You know what's crazy? They don't teach this stuff in medical school, and it could literally change your life forever. After building my own successful practice and helping hundreds of physicians create profitable private practices that actually fit their lifestyle, I want to share what I wish I knew when I started.

Speaker 0: 1:01

Whether you're in school, finishing residency or feeling trapped in corporate medicine, this guide is for you, so let's dive right in. So first, let's look at what's really happening in medicine today. According to the latest Health and Physicians Advocacy Institute report, over 77% of US physicians are now employed by hospitals or corporate entitles. That's right. Private practice ownership has absolutely plummeted from 60% in 2012 to less than 47% today, as documented by the AMA's Physician Practice Benchmark Survey. But here's the thing they don't tell you, and I've seen this firsthand. A 2023 analysis by MedcoShare found that doctors in private practice earn about 10% more on average than employed physicians and, as Laurel Road's healthcare banking division pointed out in their 2024 report, that's just scratching the surface of the benefit. So I want you to ask yourself do you want to be part of the shrinking percentage of doctors who actually own their financial future, or join the majority who trade their autonomy for what they think is security? Because I can tell you from experience that security might not be as secure as you think.

Speaker 0: 2:20

All right, before I show you how to do this, let's talk about why you should even consider private practice. First, financial independence. Look, as a practice owner, there's literally no cap on your earning potential. You can develop multiple revenue streams, make some sort of profit-sharing decisions and build actual equity. I've seen doctors double and sometimes triple their income after leaving employment. This isn't theoretical, it happens all the time. Jackson Physician Search confirmed this in their 2024 report on why doctors are increasingly leaving employment.

Speaker 0: 2:56

Second, clinical freedom. This was huge for me personally. You decide your treatment approaches, how much time you spend with each patient and what you want to focus on. There's no admin breathing down on your neck telling you to see more patients per hour. Third and this is a big one lifestyle design. So you want to work three days a week, take six weeks, eight weeks of vacations. When you build your practice right, you can structure it around your life, not the other way around. I take every Wednesday and Friday off to be with my family, and that would never happen if I was employed. Fourth, you're building something that has real value. You are creating an asset that can be sold when you retire potentially worth millions, depending on your specialty and practice structure.

Speaker 0: 3:45

But there's another crucial reason that's becoming more important every day Patients Patients want real connections with their doctor. A 2024 study from HBK CPA advisors found that patients of independent physicians report 26% higher satisfaction rates compared to those in hospital-owned practice. I see this every day in my practice. The truth is, press Ganey's 2024 report on patient experience shows that 88% of healthcare consumers now demand personalization comparable to their retail experiences. They're sick of being treated like a number. My patients constantly tell me how refreshing it is to have a doctor who actually remembers them and has time to listen. Cvs Health's recent research on personalized care found that 81% of patients prioritize their doctor's awareness of their overall well-being, and that's nearly impossible to provide in corporate setting, where you're rushing through 15, even 10-minute appointments. So the evidence is clear. Private practice is still the best path to true independence while actually giving patients what they're looking for. Now I'm not going to sugarcoat this.

Speaker 0: 5:00

Starting a practice isn't cheap, but it's an investment that pays off big time In 2024,. Walter Kluwer's Healthcare Division reports that typical startup costs range from $70,000 to $100,000 for a modest practice and can reach 250 to 500K for larger operations or prime locations. So let me break this down for you. Doctors Management 2024 analysis shows that you're looking at $2,000 to $8,000 monthly for office space, plus around $50K to $250K for renovations, depending on your location. Physician practice specialists found that equipment will run you around $10,000 to $15,000 initially and malpractice insurance that's about $75K to $50k annually, depending on your specialty. Then you've got general business insurance for around 3k to 10k annually, marketing and website setup around 6 to 7k, and licensing and credentialing around $3,000 to $5,000.

Speaker 0: 6:02

I know I said blaze through this, but here's what I wish. Someone told me when I started you do need money in the bank to cover at least three to six months of expenses while building your patient base. This is exactly where most new practices fail. They run out of cash before they can get established. If I were starting over today, I'd either keep my hospital job part-time while building the practice or make sure I had enough funding to cover all expenses for 6 to 12 months with zero revenue. Just in case you know, this takes the pressure off and prevents you from making bad decisions out of financial desperation. Trust me, I've seen too many doctors compromise their vision because they didn't plan for this startup period. All right, now for the practical stuff. Here's exactly how to launch your practice, step by step.

Speaker 0: 6:51

Step one create a solid business plan. This isn't just paperwork, it's your roadmap. Include market analysis, startup costs, projected revenue, break-even point and operational details. The American Academy of Family Physicians has excellent financial planning tools, especially for medical practices, that I've used with MediClub. Step two choose your legal structure. Most practices operate as a professional corporation or LLC. Get a healthcare attorney and CPA who specializes in medical practices. General business advisors just don't understand our industry-specific challenges.

Speaker 0: 7:29

Step 3, secure your financing. You've got options Practice specific loans from health care banks, sba loans, personal savings or investor partnerships, which I don't recommend. Have your business plan and financial statements ready. Lenders want to see you've done your homework. Step 4. Location and Lease. This is crucial. Consider accessibility, visibility, arching, proximity to your referral sources and please negotiate your lease terms carefully. I've seen doctors stuck in terrible leases that nearly bankrupted them when things didn't go as planned.

Speaker 0: 8:09

Step five credentialing and insurance contracts. Start this at least six to nine months before opening you will need your MPI tax ID, dea license and state licenses, all under your corporate. Then apply to insurance panels and negotiate rates. This process is a pain, but it's essential to get it right. Step six technology infrastructure. Choose your EHR system that actually works for your specialty and practice size. Don't just go with the big names. Sometimes smaller but specialty-specific systems are much better and cost less.

Speaker 0: 8:46

Step seven staffing. Start lean, so one medical assistant and maybe one receptionist is enough for most new practices. Hire people with experience in your specialty who share your practice philosophy. Your early team will make or break your practice. Step eight marketing plan. Build a professional website, claim your Google business profile, develop referral relationships and consider targeted local digital advertising.

Speaker 0: 9:17

I started with just referrals and simple website, then expanded as my practice. The most crucial thing to remember here is time management. From concept to seeing your first patient typically takes 9 to 12 months, so plan accordingly and be patient with the process and listen. You don't have to figure all this out alone. I've helped physicians grow their business in for the past 10 years and have built up so much knowledge, resources, contacts that are absolutely invaluable for building profitable practices. So if you need a specific game plan, strategies or money-saving tactics, resources, check out my private membership community of like-minded physicians. We share what's actually working right now troubleshoot challenges together and support each other through the journey. I'm not just talking theory here. I'm in the trenches every day running my own practice while helping others build theirs. We've got hundreds of successful physicians as proof that this works. If you want to connect with me, the link is in the description below. The link is in the description below. You'll not only learn from me, but also from our entire community of physicians who are making private practice work in today's healthcare landscape.

Speaker 0: 10:31

Now, if traditional private practice seems overwhelming, let me also show you some innovative models that are transforming healthcare in 2024 and beyond. Concierge medicine right Patient pays a monthly fee, just like subscription, usually $100 to $300, for enhanced access and personalized care. With just 300 to 600 patients, you can generate great revenue while providing exceptional service. I know a doctor who works four days a week with 400 patients and make more than he did seeing 25 patients a day in his old job. Number two, direct primary care, similar to concierge, but typically with lower monthly fees around $50 to $100 with no insurance billing. This model completely eliminates the admin nightmare of insurance and reduces overhead by 30 to 40%.

Speaker 0: 11:22

The third model, hybrid model. Actually, this is my personal favorite. Mgma's research shows you maintain a small insurance-based practice while offering premium services for cash paying patients. This is what I do for my practice and many doctors I'm helping. It gives you the best of both worlds insurance and cash stability, plus higher profitability. Their study found that typically less than 10% of patients opt into the premium tier, but this small percentage can boost your revenue significantly. Resilient Health's 2024 clinical outcomes report shows that hybrid models produce clinical outcomes exceeding the 90th percentile compared to traditional care. Even more impressive, the Revell MD's analysis found that practices using hybrid model have reported an 18% increase in collections and 25% fewer denied claims.

Speaker 0: 12:20

I've implemented these in my practice and it's been a game changer. So another one is telemedicine. This means lower overhead with primarily virtual practice. It's especially viable for certain specialties like psychiatry or chronic disease management. One of my colleagues runs 90% virtual practice and loves the flexibility it gives. Last but not least, micro practice. This is an ultra lean model with minimal staff, possibly just you handling everything. Believe it or not, one of my clients actually run with this model just himself. Imagine the profitability. You'll have lower revenue, possibly, but significantly higher profit margins. So your take-home actually is bigger than other doctors. And let's not forget about complete control over your practice.

Speaker 0: 13:10

The key takeaway here private practice doesn't have to follow the traditional high overhead model. You can customize it to fit your goals and lifestyle. So medicine is still one of the few professions where you can truly build a business around your values while making a significant income. Despite all the corporate consolidation happening, thousands of physicians are thriving as private practice owners. Is it easy? No, but is it incredibly rewarding? Yes. One of my mentees just told me last week Dr Ahn, it seems like I work harder now, but it's all for myself and I've doubled my income while taking more vacation than ever before. If you found this valuable, hit that subscribe button for more practical guidance on physician entrepreneurship In the comments. Let me know what specific aspects of private practice you'd like me to cover next. This is Dr TJ Ahn, reminding you that the best investment you can make is in yourself and your independence. I'll see you in the next video.