Expanding Your Practice: When and How to Add New Locations or Services
Starting out on your own or expanding an existing practice is an exciting step. We look at what you need to know – and the help available.
Sunday, 8 September 2024
Medical professionals are in high demand. A recent report from the Australian Institute of Health and Welfare (AIHW) shows demand is outpacing the healthcare workforce1. Four out of five health occupations are in shortage, with a particularly acute shortage of general practitioners2.
According to the AIHW, our ageing population and rising concerns about mental health are among the key factors driving demand for medical professionals.
Similar shortfalls are seen among veterinary surgeons. Australia has one of the highest rates of pet ownership in the world3. The nation’s 28.7 million pets outweigh our human population.
The upshot is that there are compelling opportunities for medical professionals to branch into private practice or expand their existing practice.
The benefits of your own practice
Running your own practice brings tremendous responsibilities. However, doctors typically find the upsides far outweigh the potential downsides.
The benefits include:
- The opportunity to decide the direction of your career
- Greater flexibility in work patterns, and improved work-life balance
- Opportunities to forge deeper, more holistic relationships with patients
- The ability to earn passive income by subletting space to allied health professionals
- A chance to build a successful business, which can be a powerful long-term investment.
Signs it is time to expand
Most doctors seek to open their own private practice at some point, and for those who have already been able to successfully start their first, the time may come when thoughts turn to expansion.
Whether you’re considering expanding your existing practice or opening new rooms in an additional location, expansion looks different for every medical practice.
That said, there are tell-tale signs that the time has come to branch out. Key indicators include:
1. You are continually booked out
Having a busy practice is wonderful. But being too busy can be stressful for you and your support staff. If patients face an extended wait for appointments, if you are turning away new patients, or if you don’t have enough time to dedicate to each patient, you may be reaching saturation point.
2. Staff are overloaded
When your team is overworked and facing burnout, your practice suffers and, patient care may be impacted.
3. Patients come from a wide area
If your patients come from a broad geographic region, it can be a strong sign that you could successfully run another practice in an additional location. This benefits your patients and gives you the opportunity to expand your business.
Planning for expansion
Expanding or opening a new practice calls for planning. There’s a lot to think through such as location, staffing, the services that will be offered, fitout and equipment needed.
A good starting point is to develop a business plan that addresses opportunities, risks, likely costs and projected revenue. Avant’s ‘Unlock your future' downloadable handbook – a guide to starting a practice.
Additionally, as there will likely be legal issues to consider, Avant Law is also available to provide valuable advice to support the expansion of your premises.
Financing your expansion
Executing practice expansion plans requires funding – that’s where Avant Finance can assist. They help doctors achieve their business goals by providing finance solutions such as:
- Practice goodwill loans
- Practice drawdown loans
- Commercial property loans
- Equipment loans
- Line of credit
- SMSF commercial property loans
An exciting new stage in your career
Opening your own practice or expanding an existing practice can seem daunting. But it adds an exciting new dimension to being a doctor.
Dr Floyd Gomes, GP and founder of Atticus Health features in episode one of our ‘Owning your future’ video series. He is no stranger to expansion. Operating nine practices, he admits it involves taking a risk but says it’s all about focusing on a process.
He sums up the advantages of expansion, saying, “If you want to learn a lot about yourself, about life, about all your own biases, and challenge those, then you should be in business because you don't get that from standing on the sidelines and thinking about it. You get that from doing it.”
For support identifying the funding best suited to your new practice call Avant on 1300 99 22 08, or request a free consultation with one of Avant’s medical finance specialists.
Disclaimers
^T&Cs:
1. Our offer for store credit with the Uniform Australia (UA) Scrub Store is for eligible Avant practice drawdown, practice goodwill or commercial property loans.
i. $250 credit for loans between $100,000 and $499,999.
ii. $500 credit for loans between $500,000 and $999,999.
iii. $1,000 credit for loans the value of $1,000,000 and greater.
Store credit expires 1 year from date of issue. Date of issue will be within 7 business days of loan settlement.
2. The offer is only available if your loan application is approved between 29 August 2024 and 31 December 2024 and your loan is settled on or before 31 January 2025. For practice drawdown loans, we will apply the loan limit at the time of settlement to determine the store credit amount.
3. This offer is not available in conjunction with any other offer. Our standard loan terms and conditions as well as applicable fees and charges will apply.
4. This offer may be varied or withdrawn at any time. Approval of any loan is at our complete discretion.
The information in this article does not constitute professional advice and should not be relied upon as such. Persons implementing any recommendations contained in this article must exercise their own independent skill or judgment or seek appropriate professional advice relevant to their own particular circumstances. Information is only current at the date initially published.
