Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Does the world need another start-up physician practice?
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Notas do Editor
Much of our discussion will revolve around whether there is, in fact, a physician shortage.
The feasibility analysis framework we will discuss.
Let’s discuss the “doctor shortage” fallacy/misconception
Adapted from “Start-up Medical Practices” by RMA, 2003Your local SBDC can help you find and analyze this sort of data
Adapted from “Start-up Medical Practices” by RMA, 2003 and the Industry Reports atMadduxResearch.com
Taken from “Aging Boomers Likely to Boost Health Care Sector” by George Van Horn, The RMA Journal, March 2010 and the Industry Reports atMadduxResearch.comLet people know you practice medicine, then move on.
Financial data taken from the 2002 Census and 2002 IRS data
…not quality of diagnostics or the actual practice of medicine.
Trending defines boundaries of success– not opportunities.Spending:Receipts per capita increased 80.2% (97-07 Census), Share of GDP from 7.2% to 16% (70-08 IBISWorld)Profits: Net profits up 6.7%, Net cash after operations to sales up 18% (06-09 RMA)Cash: Cash reserves up 4.7%, Receivables down 12.6%, Debt down 3.3% (06-09 RMA); collection and coding issues aside, the common level of receivables & bad debt is low when compared against all US firms, moderate seasonality leading to possible short-term cash flow shortages, most commonly borrow long-term debt to fund fixed assets (MadduxResearch.com)Fragmented: Top 50 firms generate approximately 9.4% of the industry’s sales (07 Census)Demographics:22.8% of General Practitioner Family Doctors and 25% of Specialist revenues are from clients 65+ (2010 IBISWorld);population will double, % of population from 12% to 20% (03-30 IBISWorld)Competition: Offices per million residents increased 1.7% (97-07 Census), GPs are consolidating (IBISWorld)Offices: Physician office revenue doubled 1997-2007, # of offices only increased 12.3%, Employees per establishment increased 20%, Receipts per office increased 77.4% (97-07 Census)Effectiveness: Receipts per employee increased 47.8%, Receipts per $ of payroll increased 14.2%, Annual payroll per employee increased 29.1% (97-07 Census), billing/collection systemsPayers: State and federal government spending accounts for 45% of total national health care expenditure (2010 IBISWorld)Internal: Aging physician population, divorce, addiction, owner disagreements, unintentional billing fraud, long-term disability of physician (MadduxResearch.com)
Financial data taken from the 2010 RMA Statement Studies (all size categories), 2002 Census and 2002 IRS dataValuation data adopted from Inc Magazine’s Valuation Guide
Taken from “Key Indicators for Medical Practice Valuations” by Mark O. Dietrich, The Journal of Lending & Credit Risk Management, June 2000
Taken from “Start-up Medical Practices” by RMA, 2003
Taken from “Key Indicators for Medical Practice Valuations” by Mark O. Dietrich, The Journal of Lending & Credit Risk Management, June 2000