Healthcare Industry: What Are the Pros and Cons of Starting Your Own Business?
If you are in the healthcare industry and are considering owning your own business, there are many things to consider. As with everything, there are both pros and cons to owning a business, so it is wise to consider all of these before taking the plunge and going for it. It is wise to make sure it is the right step before making such a huge investment and commitment. Let’s dive into all of the positives and negatives of owning a business.
It is a common belief that owning a company means the income will increase, but this is not necessarily true. According to a survey by Physicians Practice in 2017, 75 percent of employed physicians earn an income of around $200,000 annually. It is said that 70 percent of those people who own their practice does not make that much money. It is a good idea to consider Physician Revenue Solutions to make sure this is the right path for you. None of this is to say that it is not possible to make a lot of money by owning a practice, it is just important to be aware that owning a company does not mean you will automatically earn more. On the other hand, 21 percent of people who owned a practice earned over $450,000. It is a possibility to make more money as an owner.
Added Risks and Responsibilities
Those who choose to branch out and start their practice are typically risk-takers in life. There are a lot of risks that come with making a move like this, including investing personal money and recognizing that earnings may be slow at first and possibly for several years. A lot of physicians simply want to focus on taking care of the patient rather than all of the costs and responsibilities that come with owning a practice. For some, all of these added risks are worth it, so it is a personal choice.
More Control with your own business
By owning the practice, you will automatically have full control over what goes on in the company. This is a huge advantage that can be worth all of the cons that come with being a practice owner. Not only does the owner have a say in who works there, but they also have a say in how they practice medicine. According to Good Therapy, owning a company is great because it gives the freedom to limit how much time is spent in the office each week.
Fair Market Value
It does not matter if a physician is employed or self-employed, their pay will still be determined by fair market value. The values are set by the government and they calculate it using physician compensation surveys. If your productivity level is high, the pay will likely be higher. This is something to think about when considering opening a practice.
Better Patient Relationships
A big benefit of owning a practice is that it is possible to build deeper, stronger connections with patients. According to an American Journal of Public Health Study, a consistent relationship between a patient and physician leads to greater satisfaction for both parties.
As you can see, there are many pros and cons of launching your own business and owning a practice. It is wise to consider all of these points before deciding to become your own boss.