Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2018

Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2018

Medical Practice SWOT Analysis

 

Strengths

 

Medical practices are generally the most economically secure type of business within the United States. In any economic climate, people will continue to need the services of a physician or surgeon. Additionally, many payments received by these businesses are provided by private insurance and publicly funded healthcare systems (including Medicare and Medicaid). The barriers to entry for a medical practice are also exceedingly high. This is due to the fact that an owner of this type of business must have completed medical school, a residency, and receive board certification in order to work as a doctor. The startup costs, depending on the type of medical practice, are moderate, and they generally range from $50,000 to $500,000. Specialized practices that provide in-office procedures usually have higher start up costs than a diagnostician practice. The primary overhead costs associated with a new practice are payroll related (for nurses and physicians assistants).

Weaknesses

 

Healthcare focused businesses are subject to substantial regulatory issues that must be complied with on an ongoing basis. In addition to tax filings, there are a number of documents that must be filed with regulatory agencies that oversee payments from publicly funded health care systems. Additionally, the operating costs for many medical practices is very high. Physicians command large salaries as do nurses. The reimbursement times for payment can range from 90 to 120 days. As such, a large amount of capital on hand is a requirement for a medical practice.

 

Opportunities

 

For most medical practices, the quickest way to grow is to start accepting new patients. This can be accomplished if the owning physician has the time to see more patients. An associate physician can be hired to boost the revenues of the practice. One of the other ways to expand a medical practice is by transforming a practice into a concierge model where patients pay a set yearly fee. However, this type of concierge medicine business model is only applicable in areas that have high net work individuals.

 

Threats

 

Like most other healthcare businesses, there is the constant threat of cuts to Medicare and Medicaid. Private insurance reimbursement tends to remain stable, but there can be cuts to these reimbursements as well. As such, a medical practice needs to be aware of these issues as a practice owner moves forward. Competitive issues are minimal as there is currently a shortage of doctors. It is imperative to have a well written business plan when developing a medical practice.

Be sure to take a look at our Business Plan Templates.