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The Economics of Owning a Medical Practice

Owning your own medical practice is quite the big undertaking. While the freedom to make decisions about the care, treatment, and the way things are run in your own practice is liberating, it also comes with a handful of responsibility and exasperating expenses. There are many options to consider when starting up your own practice. For example, it is difficult to decide whether owning your own building for your medical practice or renting a medical office space in Los Angeles is more beneficial, as there are definitely advantages to both. There is also the looming statistic that most new businesses don’t have what it takes to stick it out after 5 years and end up folding altogether. Here are some expenses to keep in mind when making the decision of starting your own medical practice.

Start-up Fees

Initial fees to register a small business vary by state but can easily climb up to $800. Physicians are also required to pay government fees in order to practice in each state, another added expense.

Insurance

Another fee for starting your own medical practice is malpractice insurance, or professional liability insurance. This protects doctors from claims made against them by patients or damages from a civil lawsuit. All physicians are required to have this insurance before starting their own practice. Expenses for this insurance vary by state and focus or specialty. For example, a surgeon in California can expect to pay anywhere from $22,000 – $34,000 a year.

Other types of insurance also build the list of expenses. A physician’s own health insurance is one that is highly important, as well as any insurance being offered to their employees. In addition, property insurance for a medical office space in Los Angeles can range depending on location and size.

Equipment

Owners of their own medical practice are also responsible for purchasing all their own office furniture and equipment. This can range from basic stationary like paper, printers, fax machine, filing cabinets, phones, etc, to very expensive computers, patient scheduling programs, and medical tools, which are probably one of the biggest expenses.

Staff

In addition, physicians must keep in mind salaries for their employees. Medical assistants make a median salary of $34,785 and a nurse anesthetist’s median salary in 2019 is $180,100.

Hiring a consultant to help you start your practice is also very costly but may help you save money in the long run. They estimate that starting a private practice can add up to more than $100,000. This does not include continuing costs of owning a private practice to maintain and keep it running.

Owning Vs. Renting

Owning your own office building is another huge expense. Leasing can be a financial nightmare as well. There are, however, ways to maneuver around this, like renting from a medical office space in Los Angeles. Renting with a medical office space takes some of the stress out of starting your own medical practice and is possibly the best option. For example, Boulevard Medical Properties helps negotiate your lease step by step. They will walk you through each step of the way and put together a lease that fits your unique needs.

In addition, Boulevard Medical Properties’ consultants will help you negotiate the design and construction of building your own medical practice. Their specialists will meet with you to discuss your design ideas and take the construction off your hands from there with a hired team of professionals, leaving you with one less task to worry about. Boulevard is also highly conscientious of its energy use and takes the time to practice eco-friendly habits.

Medical Office Space in Los Angeles

If you’ve been considering starting your own medical practice, you may want to consider renting a medical office space in Los Angeles. Working with Boulevard Medical Properties will take some of the more troublesome aspects out of your hands so you can focus on the practice itself and all the other expenses you have to keep in order. Contact us today to learn more about your renting/leasing options.

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