How Much Does It Cost to Start a Medical Practice?
As medical practice startup consultants, one of the common questions that we receive is, “How much does it cost to start a medical practice?” It’s a valid question. The truth is, the answer depends. Starting a medical practice isn’t a one-size-fits-all endeavor, and various factors can significantly impact your initial investment.
Although we can provide a general range, the specifics hinge on decisions like whether you buy or lease your space, the size and location of the practice, the aesthetic choices you make, and the number of staff you hire. Below, we’ll break down some of the major considerations so you can better understand how these elements will shape your budget.
1. Leasing vs Buying a Space
The largest portion of your initial investment will typically go toward securing a physical space for your practice.
- Leasing Costs
If you’re leasing, costs depend heavily on location, size, and the average price per square foot in your area. For instance, setting up a practice in a metropolitan area will be significantly pricier than in a suburban or rural region. Additionally, the size of your space is a crucial factor. A small family practice will cost less per month than a larger space designed for several physicians.
- Buying Property
If you decide to purchase the property outright, you’ll need a much larger upfront financial commitment. However, owning commercial space can be a long-term investment that builds equity over time.
Estimated Costs
- Initial branding and marketing setup could cost between $5,000 and $15,000, with ongoing costs depending on your growth goals.
7. Miscellaneous Expenses
Finally, don’t forget those smaller but equally important expenses, like utility bills, cleaning services, and software subscriptions to keep your practice running smoothly.
Estimated Costs
Expect an additional $1,000 to $5,000 monthly overhead.
The Bottom Line
When all is said and done, the costs of starting a medical practice can range from $100,000 to $500,000 or more, depending on the factors mentioned above. While that may seem like a significant upfront investment, a well-run medical practice can be a highly rewarding and profitable venture.
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Navigating the process of opening a medical practice doesn’t have to be intimidating. With careful planning and expert advice, you can launch a practice that meets your goals while staying within budget.
Need help refining your plan? Contact us today for personalized guidance in bringing your medical practice vision to life!
- Medical Equipment and Supplies: $50,000 – $150,000
- Office & Furniture Costs: $5,000 – $30,000
