Is your practice considering merging with or acquiring another medical practice? You’re not alone. We’re seeing it happen across the board, from university systems to localized specialized physician groups working together to provide the right care to their patients. Medical practice consolidation is a great way to generate more revenue while combining overheads and reducing costs.
Let’s explore why medical practice consolidation is a hot trend.
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If you’re considering expanding your medical office, signing a new lease, or moving to a new office, it’s essential to examine the patient service mix of your area. This necessary market research will provide invaluable insight into patient volumes and potential demand for service, allowing you to make smart business decisions based on usable data. Having an understanding of the patient service mix will help you gauge resource needs in terms of space, staff, equipment, and accessibility.
Here’s how to go about it.
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The type of care that patients are seeking and receiving has changed significantly in recent years, with hospitals shifting their focus from providing urgent or emergency treatment towards general and preventive care. This change has been driven by several factors, with a general shift towards wellness, advances in medical technology, and the way that the Affordable Care Act handles billing and reimbursements among them. It’s a trend that’s going to continue.
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When was the last time you renegotiated your lease for your practice? Have you ever? How’d it go?
Negotiating your lease to fit the needs of your healthcare practice is a key component of running a successful practice. Lease terms, whether during the entrance of a lease or a renewal, should always be seen as a starting point.
Confidently renegotiating terms can lead to lower lease costs, open doors for an expansion of your practice, money to update your space and more. Knowing how to avoid these lease negotiation pitfalls will allow you to negotiate without fear.
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If you’re a medical practitioner wishing to avoid the challenge of building your own medical practice from the ground up, you may consider purchasing an established medical practice. Buying an existing practice lets you step into an already validated business and focus on running your business rather than getting it started.
Here’s how to go about purchasing an established medical practice.
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If you’re looking for a new space for your dental or medical practice, lease length is one of the many factors you’ll want to consider. It’s common for lease lengths for dental and medical spaces to be longer than those for regular office spaces: think 7-10 years instead of 3-5.
However, lease lengths can vary depending on current market conditions, current vacancies and planned development for a given space. Negotiation can also play a key role in netting the right space at the right terms.
Let’s take a look at the pros and cons of opting for a longer- or shorter-term lease, and which is best for your situation.
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To be frank, a medical build-out is nothing to blink your eye at. It can be a pretty penny. Healthcare facilities are unique in their needs, and you don’t want to cut any corners.
Upon executing the lease of your space, you have a couple of options as you’re selecting your site. You can move in as is (maybe with some tenant improvements), you can do a partial renovation, or you can do a custom build-out. Constructing from scratch means that you get complete control over the office layout, style, function, etc. But a custom build-out also comes with the longest lead time and highest price ticket.
If you decide to go the custom build-out route, make sure you understand the project timing, process, cost and details before you begin. Here are some tips from some guys that have seen a medical build-out or two…
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When it comes to the world of commercial real estate, there are a couple of types of cooks in the kitchen. Office, retail, and MOB (Medical Office Building) all fall under the umbrella of commercial real estate. What is the difference between them, and the pros and cons of each route?
Office spaces can be a great option for your medical practice location. These types of spaces usually offer better lighting, lower costs, and greater assistance and maintenance from landlords. The traditional business setting can also lend a sense of credibility or comfort to your patients.
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If you’re opening a new medical practice, moving locations or expanding, you might be considering a turnkey office space. Turnkey spaces are those that have been completely outfitted and are ready for you to move right in upon signing a lease or making a purchase. In theory, all you need to do is “turn the key” and enter. However, it’s not always that simple.
Here’s what to think about when deciding to proceed with a turnkey medical office space.
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We’ve all heard it before: location, location, location. This is especially true for medical practices. It’s arguably one of the most important decisions you’ll make for your practice.
While a location that isn’t exactly ideal may save you money on rent, you’re more likely losing money by sacrificing the advantages that a prime location can offer.
Factors to consider
Whether you’re just starting a new practice, moving locations or expanding, make sure you consider these aspects of your practice’s location.
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Healthcare systems used to think about real estate in terms of finding four sturdy walls and a roof that fit their bottom line. But, in 2018, healthcare executives are becoming increasingly strategic in their real estate decisions, labeling it as a high priority.
The factors that have spurred this shift are lower reimbursements, the entrance of nontraditional healthcare delivery and the aging population. Healthcare executives are now making it a top priority to control costs, improve efficiency and increase returns on their real estate investments.
Healthcare real estate is no longer strictly a liquid asset that is managed to increase cash flow and free up capital for other projects. Now, healthcare real estate is seen as a way to improve the sustainability of operating margins.
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As the adage goes, “Timing is everything.” This applies to real estate as well, especially when you are searching for that perfect place for your medical practice to call home.
How do you know when to start? You don’t want to be the little piggy that went to the market too early or too late. Too early, and landlords or sellers may not negotiate with you yet, or they’ll expect you to be ready to move forward immediately. Too late, and things get real expensive real fast.
The reality is that most people underestimate how long it takes. Set yourself up for success by understanding how long different transactions take. Here’s a breakdown of timelines for the most common situations and how to navigate them.
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