Is it time to expand your medical practice?
Expanding your practice? Sounds so easy but in reality, it’s a tough call to make – when exactly IS the right time to expand your dental or medical practice. There’s a cost involved in expanding, whether that involves a move or staying in your existing premises. You need to make sure you’re going to get a good return on investment.
You need to be sure you have a strong team you can rely on, good systems in place and confidence that you have a loyal patient base who are happy with your service and demanding more of it. If capacity is being exceeded, make sure it’s not just a temporary spike, but an ongoing situation over many months in a row.
You also need to be able to afford it – enough revenue, profits, cashflow and financing from a reliable partner like GRENKE. One financial metric which can help with your decision is to calculate how much your existing practice earns per square foot or square metre and compare it industry averages.
Of course, there are pros and cons to any practice expansion whether it’s a dentist, a GP, an osteopath, physiotherapist, OT, opticians, or specialised clinic of any nature. If you’re tired of referring potential patients to other practices, it’s time to think seriously about it. The pros include keeping your existing patients and perhaps offering more services to them as well as attracting new patients with the confidence you will be able to serve them well. Cons are mainly financial considerations and also a potential change in location and the challenge of expanding your team at the same time.
Investing in better technology may reduce those long hours spent on administration. Digital equipment and software can help with efficiencies and reduce errors at the same time. It’s important to do your research carefully and choose the best available either as an outright purchase or a lease.
New equipment or technologies which might have a dramatic effect on the performance of your practice and consequently on your profits could be anything from a smartphone to remote monitoring devices, practice management solutions and new equipment. Make sure you consult widely before committing and choose technology that will integrate with what is already in place and will be scaleable as your practice grows. Look for flexibility from vendors in terms of customisation and integration as well as assurances of quality after-sales support. Beware of any changes which will adversely affect the patient experience – they don’t appreciate disruption.
It’s equally important to get your financing in order and this is where GRENKE can help as a financial partner with relevant industry expertise. Deciding whether to lease or buy is a key concern for many medical practices. Leasing is a common choice for small and medium practice who want to avoid the significant outlay of outright purchase while also ensuring their equipment doesn’t become outdated. Depreciation is not a concern either. Once the lease period is up, the practice can upgrade to even more cutting-edge technology without difficulty. Security concerns about equipment data have been alleviated by end-of-life data security clauses within the equipment leases.
If you are considering expanding your current practice, contact GRENKE today to discuss your options. You may be pleasantly surprised.