When some medical professionals leave the corporate world, like huge hospitals, it’s mainly because they want to have a stronger connection with their patients and they want to redefine the work they do as a medical professional. Sometimes, it’s to have a better work schedule, a more prominent work-life balance, and pick who they want to work with. 

Now, like any business owner, there are plenty of fabulous things about running a private practice. Being your own boss is rewarding. But like all businesses, it also comes with its challenges; sometimes, there are just way too many challenges to deal with in the first place. But it’s not just the challenges that get in the way; it’s the actual risks. In fact, there are a lot of risks compared to working for a huge organisation, and there are so many risks. 

Don’t immediately think that having a private practice is going to be a walk in the park. Like any other business owner, it’s a lot of stress and a lot of learning. So, with all of that said, here is exactly what you need to know about the risks. 

Financial Management 

Again, it’s like other businesses, so you need to be cautious with spending and paying for employees. There actually needs to be a balance so that even in downtime, people get paid. So this means that practices must effectively manage revenue and expenses, navigate reimbursement challenges, and maintain financial stability amidst fluctuating market conditions.

Some businesses will do this themselves, and others will hire professionals to help them out. However, there are major risks because a poor decision can lead to poor cash flow, debt, and, ultimately, practice closure. Needless to say, that’s far from ideal, too. 

Potential for Malpractice Liability 

This is probably every medical professional’s worst nightmare; it’s the boogyman they’ve been taught in med school and beyond. Unfortunately, it’s real, and it can happen to you. While the good news is that healthcare specialist indemnity exists for medical practices, including smaller private practices, you can still be at risk of being exposed to these claims. 

These can arise from alleged errors, negligence, or omissions in patient care. It’s a great risk because it can result in significant financial losses, damage to reputation, and emotional stress. So, every tiny thing that you and your staff do needs to be considered because of the big risk of malpractice. 

Reimbursement Changes

This is definitely not a fun one, but medical practices are subject to changes in reimbursement rates, coding guidelines, and payer policies, which can impact practice revenue and financial viability.  Some businesses try to combat this by diversifying their streams of income, so this is something to think about. 

Patient Retention 

At the end of the day, your patients are your customers. Unless you’re running your practice in a rural area where this is no competition, then you absolutely need to think about the happiness of your patients, ie, your customers.

Seriously, dissatisfied patients may seek care elsewhere, resulting in lost revenue and damage to the practice's reputation. You need to have a patient-focused approach, and the same can be said for your employees. Your patients need to know that they’re welcome to use your services.