Have you visited a doctor’s office recently? Perhaps while sitting in the waiting room you’ve found yourself in the middle of a small or medium sized independent business. Yes, it is a business. Look around and you will see comfortable furnishings and many employees carefully following protective federal and state laws while trying to serve the patients in a timely manner. You might also focus in on expensive equipment both in the examination rooms and blood labs, additionally computers and various software are in use at the front desk and while your examination proceeds.
Your experience as a patient or a caretaker of a loved one becomes your number one priority. Meanwhile, your physician and their staff members need to prioritize a smooth process that manages not only good patient care, but also insures the practice against unforeseen risks. No doubt, insuring a doctor’s office makes for a better practice.
A medical degree is one step in preparing to manage a medical practice…
Becoming a practicing physician takes much time and effort. There is a helpful website simply named “Learn How To Become.” Our John Bailey Company team found “how to become a doctor” insightful and we were taken by the 11 steps: Undergraduate degree, MCAT exam, medical school applications, complete medical school, pass the first two parts of the United States Medical Licensing Examination (USMLE), apply to a residency program, start your residency, pass Part III of the USMLE and finish residency, obtain board certification, apply for your state medical license…and finally, apply for a job!
Did you notice what’s missing? If you search the entire article, you will discover that the word “insurance” is mentioned only three times, and each refers to a patient’s medical insurance. Today, after reviewing Business News Daily’s “How to Open a Private Medical Practice, Step by Step,” we determined to widen our lens and zero in on the importance of understanding insurance for medical offices and the practicing physician.
While not all business owners are physicians, all physicians should understand good business practices…
Much is written about the types of insurance a doctor needs. For example, medical malpractice insurance immediately comes to mind, but we must consider other coverages like worker’s compensation, general liability, commercial property coverage, business interruption, cyber liability insurance, commercial auto, disability insurance, umbrella insurance and employer practices liability.
To aid our readers, in 2016 the John Bailey Company created an informative slide show that outlines what a physician needs to consider when insuring a doctor’s office.
It is important for doctors to be responsible business owners
Being a responsible business owner often does not come naturally. People study for years to receive a BA/BS in business and will frequently continue to receive a Master’s in Business Administration (MBA). Now experts are weighing in on the importance of physicians honing their business skills. A few years ago, Fiona Scott Morton, a professor of Economics at the Yale University School of Management observed:
“The problem is management, not a lack of resources,” says Morton. Physicians are the real managers of the health care sector, and a lot of them were not trained for this. “Nobody ever taught them about a balance sheet or an opportunity cost or how you depreciate capital,” notes Morton. “We need physician leaders to get themselves a few more tools so that they can make these decisions about how to get resources allocated effectively.”
In November 2016 the New England Journal of Medicine (NEJM) originally published “New Physicians Will Need Business School Skills.” And in 2017 Johns Hopkins experts proposed a business training requirement for medical students. Business management acumen is needed when establishing a doctor’s office. Our readers might be interested to know that in 1993 there were six schools that offered a joint M.D./MBA, now there are about 65, including Tennessee’s Vanderbilt University Medical School and the Owen Graduate School of Management.
Insurance for Medical Offices
Medical professionals require premium insurance coverage to safeguard their practice, assets, and team. Representing some of the most reputable insurance companies in the industry, our team acts as your business’s advocate. We provide unbiased advice and find the most competitive pricing for your coverage. We educate physicians embarking on their first private practice as well as seasoned physicians looking to review their policy options.
To insure a great life we will continually reevaluate your needs to assure adequate protection of your property, assets, employees, and family. Contact us today to learn how insuring a doctor’s office takes practice. And with 70+ years of experience we continue to offer integrity, service and expertise.