Doctor’s Going Broke? Share Medical Office Space and Save
According to a recent report from CNN, many doctor’s are in danger of going broke. It seems that 20 years ago any doctor could hang a shingle and make a decent living. Today, the pressures of shrinking reimbursement and increased regulatory costs are putting the squeeze on doctors of all types. One answer to increasing costs is to reduce overhead by sharing medical office space. This is often a win-win situation for both doctors, resulting in decreased overhead and in other synergies. When looking for a medical office share arrangement consider these points.
- Location. Sometimes sharing a medical office will allow you to place your practice in a more expensive location than would otherwise have been possible. Look for a doctor in an area that you want to be in. This is also a great way to open a second or third office with minimal upfront expense.
- Complementary specialties. Look for practices that have natural synergies with yours. If you are a internal medicine sub-specialist then it likely makes more sense to share an office with an internist or family practitioner than with a neurosurgeon.
- What’s the deal? Even though many office share arrangements are informal, a contract or Letter of Agreement should be prepared and reviewed by an attorney. Good contracts keep friends friends.
- Services and amenities. Review what other services and amenities might be available to you in a shared medical office. You might be able to share a receptionist, a biller, and even medical assistants and nurses. Collaborate with you office share mate and you will likely find many opportunities to consolidate costs.
- Personalities. No one wants to feel like they are a guest in their own home. When you share a medical office, make sure that your co-tenant and their staff will respect you as an equal, and not make you feel like a second-class citizen. That sort of dynamic is doomed to failure.
Start looking for a medical office share today and don’t end up a broke doc.