Archives : business model

Vantage Forums: Choosing the right entity for your practice

We get the question all the time: “What type of entity should I choose for my practice?”

It’s a loaded question, and depends on many factors including tax implications, legal ramifications, simplicity, liability protection, and more. Of the many great resources offered by the Small Business Administration (www.sba.gov), here is a nice and simple resource that outlines many of the factors that should be considered when choosing an entity for a practice.

http://bit.ly/ctCoko

via Vantage Forums: Choosing the right entity for your practice.

Private practice – a flawed business model?

Here is an interesting take from an economist looking at the “business model” of small health care practices.

For most small business owners, the productivity of each employee increases revenue. Whether the product is a widget or a hot-dog or computer software, the general concept of employee productivity is that employees increase revenue and the more revenue per employee the better. Thus as sales escalate to the point of needing another employee, the revenue from that person’s productivity more than covers his cost. Thus scaleable businesses typically have desirable business models.

In private practice medicine, revenue is dependent on the productivity of one person – the doctor. Hiring more employees does not increase his productivity. The only thing that can increase revenue is for the doctor to work harder and faster to see more patients or do more procedures. He is the rate-limiting step in the business model. This is the reason why your trips to the doctor’s office get shorter and shorter.

Check out the rest of this article here.

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