Pro Tips: Starting Your Private Practice

Whether it’s the ability to control your own schedule or the promise of financial freedom, owning a private practice is a dream of many young doctors. It’s also a lot of work. With private-equity buyouts of independent practices changing the equation, understanding the basic business behind successful practice management is now more important than ever.

Having owned and managed their own practice (Audubon Dermatology in New Orleans, LA) since 2006, Sarah Jackson, MD, and Deirdre Hooper, MD, are brimming with the kind of knowledge and wisdom one can only gain through personal experience. In one of a series of On-Demand Workshops for members of Modern Aesthetics networking platform, YoungMD Connect, the doctors and business partners share insider tips in their webinar, “Where to Start: Opening and Running a Private Practice.”

WHERE TO START

The story of Audubon Dermatology’s own startup days begins not long after the devastating impact of Hurricane Katrina on the city of New Orleans. As they explain on their website, Drs. Hooper and Jackson, both daughters of physicians, were inspired by that event to provide “comprehensive, family-centric dermatologic care to a community in great need of support and revitalization.” Defining their mission led naturally to outlining the goals they needed to set to achieve their vision. Of course, not everyone will have a thunderbolt moment that defines their purpose in life. Whether or not there’s a galvanizing event, a crucial step on the road to successful business ownership is identifying your goals.

Providing quality patient care while achieving professional and financial success is the baseline objective of most early-career doctors, but the “vibe” of independent practices can—and should—reflect the owner’s individual manner and style. For that, Drs. Hooper and Jackson encourage everyone starting out to take some time for self-examination. Ask yourself: What makes you tick? What are your limits? What does your ideal office look and feel like?

“Look at your strengths and weaknesses as a person and decide what type of practice you want to have,” says Dr. Jackson.

THE BUSINESS SIDE

After laying the groundwork by identifying your goals and working style, writing a business plan is the doctors’ first critical milestone in launching a private practice.

“A lot of the audience says, ‘I know a lot about dermatology, but not so much about business,’” says Dr. Hooper.

Still, it’s an important hurdle to overcome. In fact, they said, seeking financing is a strong likelihood for most startups—especially a private medical clinic with costly devices, a professional staff, compliance requirements, and other foundational essentials. A business plan details financial projections so potential lenders and investors can understand how their money will be used (and, in the case of some funders, how their investment will potentially benefit them).

Pictured (L to R): Deirdre Hooper, MD, and Sarah Jackson, MD

“You’ll have to call on a lot of resources for this,” says Dr. Hooper. “We weren’t profitable for the first year.”

Fortunately, resources are available that detail exactly how to write a business plan. Here are some doctor-recommended “must-reads” for anyone interested in starting a private practice:

• “The Business of Dermatology,” edited by Jeffrey S. Dover, MD, FRCPC, and Kavita Mariwalla, MD, FAAD. With contributions from more than 40 practicing dermatologists (including Drs. Hooper and Jackson), this resource includes 55 chapters of insightful and practical advice.
• TBCD Career Center on Facebook. This subsidiary of “The Board-Certified Dermatologists Facebook Group” is a forum for residents who have passed their boards.
• American Academy of Dermatology Association Practice Management Center. From coding resources to compliance guidance, this section of the AAD’s site has a wealth of dermatologist-specific information.

IS IT WORTH IT? (YES)

For Dr. Hooper and Dr. Jackson, their 16+ years in private practice together have provided professional and personal fulfillment they could only imagine in their early days. They acknowledge that building a business includes sacrifice and plenty of frustrating moments. But with the right tools, strategic decisions, and mentors, the rewards—financial autonomy, and happiness—make it all worth it.