Establishing a startup or a business in this dwindling economy can seem daunting to many. However, a healthcare startup has proven to be profitable owing to the fact that the demand for healthcare professionals and nurse staff is dramatically increasing.
According to the Bureau of Labor Statistics, employment in healthcare occupations is projected to grow by 14% from 2018 to 2028, adding about 1.9 million new jobs. As for nurse practice, according to BLS, a nurse practitioner earned a median salary of $113,930 per year in 2018. The projected growth of people employed as nurse practitioners is expected to be 26 percent between 2018 and 2028. Looking at all these positive prospects, starting a nurse practitioner practice seems to be a good idea.
Although the prospects for starting an NP practice are in your favor, it is important to examine the expenses that you’ll have to incur in the initial stages. An NP practice is not just a private venture. It requires a business approach and a pragmatic skill set that will set you on the right path. Just like any other business startup, you will need money to invest in assets. After the startup is established, you can easily supplement the expenses with the subsequent flow of income. However, it’s still a good idea to have a rough estimation so that you can navigate around the corporate circuit for an NP startup more easily.
These are some costs to keep in mind when thinking about how much money you’ll need to start an NP practice:
To start an NP practice, the expenses you incur will depend upon the specialty of the nurse practice and the location where you’ll build your business. The startup costs will include primarily the assets that you’ll need to run your NP practice. These assets include labor force, office spaces, equipment, and clientele services.
Startup costs may also include some legal costs such as taxes, registration, licensing, and insurance reimbursements. Many economic specialists recommend that you have an amount in the six figures when starting an NP practice, to avoid any future peril.
Ideally, for small primary care practice. You will need approximately $70,000 to $100,000 to pay for your initial assets.
Some states in the U.S. require a licensed physician to be a consultant in an NP practice. This physician may be required to be present at all times during working hours or be available for a consultation over the phone call. The physician will have to review the clients’ medical charts. On average, a consulting physician will probably charge $5 to $20 per chart review. Again, the costs vary.
Other than physicians, some places also require an NP practice to get registered and insured. Unlike other startups that simply apply for reimbursement insurances, an NP practice startup will need malpractice insurance as well. The average cost of medical malpractice insurance is $7500 annually.
The registration costs and requirements differ largely from place to place owing to different laws. The registration fee, license fee, and insurance cost add up to the major bulk of amount you’ll need to start an NP practice.
A private nurse practitioner earns a good amount. On average, they have an annual salary of $65,470 to $100,000, depending on their specialty, experience, and academic credentials. According to PayScale, the average hourly rate of a private nurse on duty is $23.87 per hour.
For your startup, you’ll need a competent NP team. For ancillary staff, you’ll need receptionists, office co-coordinators, and janitorial staff. According to a 2017 BLS report, on average, a receptionist made $14.25 per hour.
Their salaries and occasional bonuses can easily be taken out of the revenue that will come after you’ve successfully built your practice. But to sustain the workforce for the first few months, you will need a grounded fiscal plan for paying wages.
Location and Office Spaces
The location of your startup will add to your cost, and you’ll find a range of different rates for renting or buying office spaces. Renting an office will be the biggest operational expense when starting your NP practice. Office spaces are rented according to rates that are determined by square foot calculations.
In major cosmopolitan cities like New York, office rent is $85.20 per sq. Ft. In Chicago, it’s $33.90/sq. Ft, and in Washington D.C, it’s $59.90/sq. Ft. Office spaces must also be able to accommodate all your employees and equipment, and your interior should be client-friendly. These office renovations can cost anywhere from $15,000 to $50,000. Good office space is vital to attract clients and investors.
The corporate world is filled with competition and rivalries. However, the demands for healthcare are skyrocketing, and governments are investing billions in improving their healthcare systems.
Nonetheless, you will still require a good marketing strategy to ensure your NP practice is successful. Social media, flyers, and advertisements are all good ways to get the word out about your practice. When budgeting, you’ll have to allocate money to invest in marketing.
You can hire a team of specialists or freelancers to perform marketing services, as well. Freelancer rates vary according to the type of services and projects asked. According to Glassdoor, a freelance marketer could charge between $22 to $37 per hour.
To start an NP practice, you will require steady determination and the ability to make smart choices. Initially, you may need to save up or gather money to start your practice successfully. Devise a budget plan that will help you allocate money efficiently and start your business smartly.