Are You Ready for the Business Side of Medicine?

At this point in your career, you may have already decided to set up your own medical practice. This could be a smart move—perhaps working with a smaller clientele, free from the bureaucracy of huge hospitals, will let you better fulfill your calling as a physician.

However, upon pursuing this path, you also have to be ready to manage your practice without the benefit of having a large administrative support staff behind you. This means you will have to concern yourself with matters beyond diagnosing and treating patients, such as medical accounting.

Ask yourself:

  • Could you keep organised billing and purchasing records on your own, or should you hire an assistant to do so?
  • If you intend to maintain a small staff—whether of only a nurse and a clerk, or more than two—would you need a specialist to handle payroll as well?
  • Do you know how to fill out a business activity statement (BAS)?
  • Do you understand the intricacies of goods and services tax (GST) for medical practitioners?

Your skill in these aspects of running a practice is not to be expected, given they are arguably beyond the scope of the medical profession itself. As is recommended, you could hire professional medical accountants to take care of this side of operations. However, it would do you well to know what it entails. After all, a reputable practice is one that not only looks after its patients, but all that is required of a business as well.

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