Establishing a medical practice is a dream of many physicians. There is a different level of satisfaction from operating a clinic independently. But, running a business and taking care of people takes two different mindsets.
If you’re planning on setting up your own clinic, you have to be ready for the paperwork and costs that come with it.
How much does it cost to start a medical practice? In this article, we discuss medical practice startup costs, focusing on the average cost of basic equipment.
Budgeting for a Small Medical Practice
There are several factors to consider when starting a new private medical practice. These include the following:
- Staff: How many professional healthcare staff (ex. RNs or medical interns) will you have on board? And how many other employees (ex. administrative and maintenance staff) will you be hiring?
- Location: Will your clinic be set up in a space you own or rent? What are the space’s existing features, and how much renovation is required?
- Medical equipment and software: What medical equipment and healthcare-related software will you need? Will you be buying brand new or gently used machines?
- Insurance coverage: How much are you setting aside for business insurance and malpractice liability coverage?
- Miscellaneous expenses: How much will you spend on office supplies, medical supplies, employee benefits, utilities, government permits, and other expenses?
With these factors in mind, how much does it cost to open a medical clinic?
According to Doctorly, the cost of launching a small private medical practice can range from $70,000 to over $100,000. This already includes operating expenses for the first few months.
Your clinic’s location also matters when it comes to malpractice insurance coverage. For example, insurance for a practice in a relatively quiet neighborhood in Minnesota can cost up to $15,000 per year. A similar service in a highly urbanized area in Florida can reach as high as $70,000 per year.
Cost of Medical Equipment for New Clinics
How much does it cost to open a medical clinic? A huge chunk of your startup budget will be assigned to medical equipment. This will likely be your largest combined cost.
This covers the medical hardware and the necessary supplies to support them. It also includes IT equipment and practice management or electronic health records (EHR) software.
We list the average cost for some of the major equipment you might need for your new clinic.
- Hospital beds and recliners: $500 to $5,000
- Wheelchairs: $500 to $2,000
- Patient lifts: $6,000 to $16,000 (mobile or permanent)
- Autoclave sterilizers: $10,000 to $20,000
- EKG machine: $1,000 to $3,000 (portable) and $6,000 to $12,000 (fixed)
- Ultrasound machine: $25,000 to $250,000
- Practice management and EHR systems: Practice management systems cost around $10,000 to $25,000, while EHR systems range from $15,000 to $75,000. On-site medical billing systems are typically priced at around $8,000. But, you can also subscribe to third-party hosted medical billing software for $35 to $100 a month.
- General medical supplies, equipment, IT hardware (ex. laptops or desktops), and furniture: $10,000 to $50,000
Your initial medical equipment inventory will depend on what services you provide from the get-go. As your practice grows, you will likely need to invest in more or newer medical and IT equipment.
Whether you’re starting a new clinic or are looking to grow an existing one, you might need to take out a loan.
Get the Financial Boost You Need to Start a Private Medical Practice
If you’re looking for affordable loan options to finance your new clinic’s medical equipment, you’re in good hands with Charter Capital. We understand the rapidly changing needs of the medical industry and are committed to helping you stay competitive.
We offer a wide range of medical equipment financing for hardware and software up to $1 million.
We can create custom payment schemes, including seasonal payments, balloon payments, and more. That way, you can focus on your business and worry less about finances.
If you need to buy or lease medical machinery, IT equipment, hospital beds, etc., we can guide you to the right loans for your practice.
Contact us for inquiries.