How to start a medical centre in Australia
If you are thinking of starting up a medical practice in Australia, know that the process can be a daunting one, especially if this is all new to you. Luckily, it isn’t new to us. We help people as they go through this process all the time and know exactly what steps you will need to take to embark on this very exciting journey.
In this article, we explore all the elements you need to consider as you learn how to start a medical centre in Australia.
How to start a medical practice
The most important thing to do is to think carefully about what you desire beyond the first few years. Many people forget to consider what they would like for their centre, five or ten years down the track. When you give yourself time to consider what you imagine your medical centre to be in the mid- to long-term, you will save yourself some headaches down the line.
To do this, start with what we learned in primary school when we were asked to consider the 5 W’s.
Does ‘Who? What? When? Where? Why?’ ring any bells? The 5 W’s are a great way of summing up some of what needs to be considered as you contemplate what is involved in how to set up a medical centre.
Who do you want to do it with?
Will you have a partner, nurses, administrative staff, how many doctors do you imagine starting with and growing to? Who do you want your target market to be (are there any speciality areas)?
What kind of medical centre do you want?
Do you want to have a general practice or doctors who specialise in particular areas?
When are you going to do it?
What time frame are you looking at and is that reasonable?
Where do you want it to be located?
Is this a good growth area for the type of clients we are looking to attract? Who else is in this geographic location? What does the market share look like for other practices?
Why do you want to do this?
What makes you want to go into business and have your own centre?
What is your purpose?
This is so vital to protect. How will the establishment of this medical centre help you fulfil your purpose?
As you might remember, they always added the random ‘how’ after all those W’s though, didn’t they? ‘How’ is perhaps the most complicated. However, it is the one where we are the most powerful to you.
Setting up a medical centre is a tricky area to navigate on your own. Luckily, you don’t need to. This is where the practical considerations come in, and what we are about to explore below.
Additional considerations while Starting a medical practice
In addition to these five W’s, you will need to consider the following:
1. Loan to Start a Medical Practice or Medical Practice Loan
What will your budget be? What can you afford? How much financial runway do you require to adequately resource your practice?
Before engaging with us, it is best to consult with your accountant to go over funding, benchmarks and take into account any tax implications for the new practice.
2. Location
As the saying goes, ‘location, location, location’. There is a lot to think about when it comes to location, hence all the emphasis. Who will your competitors be? Also, are there other businesses that might complement yours nearby and in fact, add to its success?
For example, are there nearby pathology centres or pharmacies? Is there adequate and exclusive patient parking? Is the centre easily accessible via public transport? What about housing prices? What does the area and demographics indicate to you?
When you are beginning to research or visit possible locations, this is a good time to engage us to seek advice. We are brought in at this time to identify any risks or limitations that might exist if you are leasing or purchasing a property, and also to make you aware of the many other considerations that can hinder a smooth start for your centre.
3. Software
As you will be aware, Electronic Health Records are a must these days. Consider which software is going to work best for your practice. It is not uncommon for software companies to promote their software as superior to others. Sometimes the promises of additional functionality can prove to be difficult to use. Have us review any software or service agreements before signing on the dotted line.
4. Map out recruitment
Once you know what you want, and where you want it, it’s important to know who you want there. We recommend mapping out all the tasks you know you will need done, to help identify the roles you will require.
There is a lot to consider at this point, especially the issues that can arise around how you choose to hire your doctors.
Not sure about whether to hire doctors or employees or independent contractors? Read this article here.
5. The Nitty-Gritty: Accreditation, registrations, and legal obligations
As you will be aware, medical centres are highly regulated. There are many obligations that you have as you set up your medical centre and as you grow. Ensuring you have the correct insurances is one of these many requirements.
You will need formal Practice Accreditation from the Royal Australian College of General Practitioners (RACGP). This is available through accreditation agencies and is a commitment to safety and high-quality care.
If you intend to obtain access to government funding, then you will need GP accreditation. Medical practitioners need to be registered with AHPRA. You will also need to apply to register for Medicare.
6. Be visible before you open
An online presence is very important nowadays and will play an important role in promoting your new practice and attracting patients. You will need to consider a website and claim your online profiles for the platforms you believe your future clients are using.
Also, consider networking in the community before you open, and beyond. It can build anticipation of your centre opening and give people the chance to get to know you and build rapport with potential clients.
Networking early will generate interest, which becomes particularly helpful if you do not have a patient list to start.
Our process with clients
When soon-to-be medical centre owners engage us, we take you through our process:
It starts with a conversation to identify your vision for your practice.
Together we then work through the practice, people and profit considerations for the business in a systematic way and cover all the risks. It is here that we go on a bit of an educational journey to understand the business and legal side of your medical centre.
We will cover and discuss relevant considerations, such as The Red Book, relating to prohibited practices.
We then create a Governance Health Check to-do strategy. Create the road map to get your practice open effectively, and work through that together.
With our level of experience and expertise we can have this process started and completed in 2-3 months.
When we first meet with people like you who are ready to start the process, in addition to the above questions, we ask a number of questions to identify what will be required to protect your business effectively. Your responses will help us know exactly which documents you will need to ensure you can open your doors to patients on schedule, and thrive beyond those first weeks and months.
There are numerous advantages of working with people like us who specialise in working with doctors and medical practice owners. Our holistic and comprehensive approach means we can identify and close any gaps in your medical business road map, meaning you can start your new centre on a solid foundation.
We work remotely, so we facilitate this process through online meetings and phone calls with our clients, allowing us to set up practices in every state and territory in Australia. We enjoy working with both city and regional practices to help you protect your considerable investment and set up your medical practice for success.
Related articles: Thinking of bringing in a Partner to your medical practice? 5 elements to consider
Employing doctors - doctors as independent contractors or employees?
Adding a doctor to your practice: 5 considerations for how to hire a doctor
To take steps to determine the documentation required specific to your practice, arrange a time to speak with one of our team, who specialise in assisting medical practice owners minimise their risk and optimise their efficiency. You can do that here.