There are a number of benefits to buying an established FHO practice
You get a guaranteed, steady income from day one – there’s no need to start from scratch or deal with the unpredictable income and growing pains of a new practice. Jumping into something that already exists means you can count on optimized operational performance and practice stability. And when you don’t have to put in the time to build something, you have more time for yourself – which translates to better work/life balance.
Of course, no practice purchase comes without cons. The biggest one is the initial up-front cost – buying an existing practice requires a much more significant outlay than growing one from the ground up.
So what’s the right choice for you? Buying an existing practice or growing your own? Consider these questions as you decide:
1. What are you prepared to spend? A turnkey practice will cost much more up front than one you build up yourself, but you will be up and running right away.
2. Are you ready to add your name to an existing office lease agreement, or sign a new one? An established lease in an existing location won’t give you the same kind of choice or flexibility as a brand-new practice – an established practice will be tied into a location that’s convenient to its patients, which limits your mobility and choice.
3. What is their expense reimbursement structure? Is it one that works for your needs?
4. Is it a solo or group office? Would you prefer to be on your own in a practice or be part of a team with other physicians?
5. What partnership and group governance agreements are in place? Will they work for your needs?
6. If it’s a FHO, what is the size of the group? Where is it located?
7. How familiar are you with running a FHO business? Are you comfortable with the administrative aspects of managing a FHO practice and roster? While the FHO structure is the most popular payment model within family medicine, it can also be the most complicated.
If you decide to take the FHO route, make sure you’re familiar with the ins and outs of practicing and optimizing a FHO practice. That’s where DoctorCare can help – our FHO expertise can help you transition more efficiently into an existing practice with fewer growing pains and a faster ramp-up time.
Need help deciding if a FHO practice is right for you? Contact DoctorCare – we can help you make an informed decision.
Want to learn more about buying or selling a practice? Watch DoctorCare’s recorded “Mini-Webinar: Buying & Selling a Medical Practice in Ontario.”