The Healthcare Entrepreneur Blog

When the well runs dry: Be prepared if your practice runs out of cash

by Tannus Quatre PT, MBA | June 9th, 2008 | No responses

Of course we don’t “plan” on it happening, but we should have a plan nonetheless.  Running out of money in private practice does happen, and as this post from the Independent Urologist points out, this has an obvious (and usually immediate) impact on a partner’s take-home pay.  It pays to be prepared and this post has some great ideas for how to be ready should a cash crisis strike your practice.

If you have savings or a source of income that can last 1 year, you can go off on your own. Otherwise, I don’t believe that this is a viable option, unless you have an established practice, a loyal patient and referral base, and an unenforced no-compete clause. In that instance, you may be able to become cash positive in 2-4 months. Here’s how to start.

Tannus Quatre PT, MBA
Tannus Quatre is a private practice consultant and principal with Vantage Clinical Solutions, Inc., a nationwide healthcare consulting and management firm located in Bend, OR and Denver, CO. Tannus specializes in the areas of healthcare marketing, strategy, and finance, and can be reached through the Vantage Clinical Solutions website.