While offering Botox or IV hydration on the side of your clinic job might seem like a great way to earn extra income and ease out of full-time patient care, many new clinicians get discouraged before ever launching.
The amount of research required to begin offering a new mobile or brick-and-mortar clinic is too overwhelming for many clinicians, who are already juggling demanding jobs, burnout and work/life balance. ClinAdvize owners Morgan Lasack and Martha Tyler have seen many ambitious clinician entrepreneurs give up their dream of opening a business after wasting time and money trying. The two business partners opened their own consulting business to help clinicians shorten the runway to launching a new practice.
“The ultimate question is, how fast do you want to do this? Because if you want to get this up and running with little frustration, then you need some help. Otherwise, it will take time, and you’ll learn as you go,” says Tyler.
Choosing the right vendors is the bulk of the upfront work to launch your new practice. The process requires months of research and software demos, say Lasack and Tyler, who do that work for their clients. The two share tips to support new clinicians through the initial steps required to partner with the right vendors and launch a new business.
What vendors do you need to launch your new clinic
Whether you plan to provide weight loss treatment, IV hydration or med spa services, creating a business plan is the first step to launching your new clinic. This will help you determine what vendors you need to support your business.
The vendors you need depend on several factors. “It would be nice if you could purchase a simple business in a box, but there are so many variables that it’s never one size fits all,” says Lasack.
Following are questions to ask that can help you determine what vendors you need:
- Service(s):
What types of services do you plan to offer? For example, offering IV hydration or aesthetics services will influence your choice of supplies and medical directors.
What types of products do you need to offer your services?
- Location:
What are your state’s compliance laws, licensing standards, malpractice insurance and corporate practice of medicine (CPOM) requirements?
- License:
Depending on your state’s licensing requirements, what kind of partnership do you need with a medical director or collaborating doctor?
- Business model:
Do you plan to have a brick-and-mortar location, a mobile clinic, or a hybrid? Will you be a solo provider, or do you hope to eventually have employees?
- Administrative preferences:
Do you plan to do everything yourself or outsource some tasks, such as making appointments, bookkeeping and marketing?
- Technology setup:
What email domain, cloud storage, scheduling software, and possibly marketing tools are best for your business?
Deciding on your technology stack early can help you save time and frustration.
- Insurance needs:
Do you need medical malpractice insurance for yourself or your staff? Do you need cyber insurance? Do you need a business owner’s policy? Do you have employees who need health insurance or workers’ comp?
The answers to these questions can help you identify the right vendors to launch your clinic.
Finding the right vendors for you
Once you identify what vendors you need, you can research which specific ones to select for your business. Lasack and Tyler recommend the following tips.
Diversify your product suppliers:
When selecting the right pharmacy vendors for your clinic, you’ll want to set up a few accounts so you never run out of products. Each pharmacy will have its own regulatory and logistical constraints. Take the time to understand the nuances of their ordering processes, such as wet vs. electronic signatures and shipping schedules.
Remember that while national vendors may offer better prices for large orders, local pharmacies can be invaluable in emergencies. A local option can often supply in smaller quantities or in a time crunch.
Sole sourcing can lead to disruptions in service if there are shortages or shipping issues, which could impact your ability to meet patient needs. “If we learned anything from COVID, it’s to always have a backup supplier, always,” says Lasack.
Choosing an EMR:
Selecting the right electronic medical record might be as simple as opting for the one you already know or one your medical director prefers. However, if you’re comparing EMR systems, consider your budget, the number of users and the services you provide.
Consider the system’s scalability if you plan to expand or operate multiple sites, as well as its user-friendliness, particularly for less tech-savvy staff. Additionally, it’s crucial to evaluate the vendor’s customer support and ongoing training options.
3 common mistakes to avoid when partnering with vendors for your new practice
Mistakes are inevitable as a new business owner. Tyler and Lasack offer the following advice to avoid some of the most common mistakes they see among new clinician-owned practices.
Avoid partnering with a medical director too early:
One of the first steps many clinicians take is to hire a medical director. This can be a costly mistake if you’re paying a physician months before you need their services.
Don’t sign a contract with a medical director before establishing your business and finalizing key details. Starting research and conversations early is okay, but don’t commit to a medical director until your business is at least filed.
“That’s going to be one of their higher business expenses overall, so you wouldn’t necessarily want to go sign up for a medical director when you haven’t even filed your business entity,” says Lasack.
Don’t skip market research:
Not performing enough research on local trends can lead to offering services that aren’t in demand – especially in med spa clinics. For example, weight loss and lip injections are trending right now, so clinics will need to research their specific market before finalizing their service menu. Trends that are huge right now on social media, may fizzle out, and something else will emerge. You’ve got to stay on top of these trends if you want to keep your business profitable, ,” says Tyler.
Don’t launch too many service lines:
Lasack and Tyler have seen many clinics start with more service offerings than they can manage. Instead, they recommend setting up the business and vendor relationships before expanding your service line.
“They’re setting themselves up for a lot of headaches down the road, or potentially even failure if they don’t manage it all well. Focus on the fundamentals first before you try to start hitting home runs,” says Lasack.
Finally, Lasack recommends finding a trusted source of expertise to open a new clinic. In the beginning, there’s no way of knowing what you don’t know. A mentor or a consulting firm can help you avoid many of the pitfalls of starting a new practice.
“When you’re starting a clinic, running a business may not be your specialty. You’re not expected to know everything, so find someone who’s collected the best practices from clinicians and has experience working with vendors,” says Lasack.
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