Original Article by Dr. Rachita Narsaria, MD
Having gone through 6 to 10 years of rigorous training at medical school including an internship programme, medical practitioners at some point of time have to take a tough step of setting up their own clinic or nursing home. Though working as an employed physician with someone senior seems easy, having your own practice is the real deal that you worked all these years for.
Although it is a lucrative option, it is a difficult task to set up, manage and run a successful practice. Private practice is a business, requiring proper planning especially in relation to financial capital and its utilisation. Upkeep and maintenance of a good medical nursing home or clinic is not cheap, so it’s important for a physician to keep a check on expenses, ensuring that there are no losses incurred to him.
There are numerous expenses that incurred each month, and the aim of the physician is to have the inflow of money exceed the outflow. Shown below are the typical expenses which are involved in running a nursing home smoothly:
● Staffing
The higher the level of expertise of staff required, the greater the salary. It all depends on how many consultants you have in your clinic or nursing home. Other staff that are essential include nursing staff, receptionists, cleaners and other helpers in your setup. Salaries of the staff itself make up a significant chunk of expenditure.
● Nursing home premises
Depending upon the mode of purchase it could either be on lease or monthly instalments. If you have taken insurance for your setup, the premium must be paid each month, which is another important expense to be factored in. These payments have to be made monthly and cost a lot, depending upon the area and place of setup. A good clinic requires proper maintenance and renovation which can look like a fortune especially if you are just starting out your practice. Renovation or is a costly affair but one that is inevitable.
● Medical Supplies
Medicine expenses are incurred on a daily basis. Medical Instruments, although expensive and not changed every other day, need to be replaced over a period of time. Necessary instruments are required for various procedures and newer ones are pricier than their outdated versions. Customized stationery for your nursing home is another necessity. Computers, phones and other advanced technologies are also required.
Miscellaneous expenses such as electricity bills, phone bills, water supply charges, laundry bills etc. all need to be attended to independent of practise. Given the competitive market, advertising is another field that needs to be pumped in with money. These all are a considerable amount and an expense that is recurring. It is advisable to keep a medical inventory that gives a fair idea of all the supplies and expenses on a regular basis.
Ensuring that all these costs are factored in while planning to set up a nursing home will make sure there are no unpleasant surprises.
Original Article by Dr. Rachita Narsaria, MD