THE KEYS TO THE KEYS TO STARTING A STARTING A

PRIVATE PRACTICEPRIVATE PRACTICEPart I:Part I:

Thinking Like a Thinking Like a BusinessmanBusinessman

A Presentation of the AACAPA Presentation of the AACAP

Member Benefits CommitteeMember Benefits Committee

John E. Dunne, MDJohn E. Dunne, MDCo-Chair, Member Benefits CommitteeCo-Chair, Member Benefits Committee

16040 Christensen Road, Suite 21716040 Christensen Road, Suite 217Tukwila, WA 98188Tukwila, WA 98188

jedunne@u.washington.edujedunne@u.washington.edu

A Private Practice is a A Private Practice is a BusinessBusiness

Providing a service for a feeProviding a service for a fee What services, i.e., general or selective?What services, i.e., general or selective? What fees?What fees?

Where will you set up your practice?Where will you set up your practice? Location, location, locationLocation, location, location Willie Sutton’s lawWillie Sutton’s law

What Not To DoWhat Not To Do

Don’t set up near where you trained; Don’t set up near where you trained; i.e. don’t set up where there’s a high i.e. don’t set up where there’s a high concentration of child psychiatristsconcentration of child psychiatrists

Don’t set up just because it’s near Don’t set up just because it’s near where you livewhere you live

Don’t join a group practice just Don’t join a group practice just because they want youbecause they want you

What To Look ForWhat To Look For A place that has a need for a child A place that has a need for a child

psychiatrist psychiatrist andand families that can families that can afford to pay for private services and afford to pay for private services and are inclined to seek themare inclined to seek them Higher SESHigher SES Quality health insuranceQuality health insurance

A place that fits your own needs and A place that fits your own needs and interestsinterests Proximity to family and friendsProximity to family and friends Personal interestsPersonal interests

Locating an AreaLocating an Area

Where are the families you will be Where are the families you will be serving?serving? Look at median house pricesLook at median house prices Proximity to colleges or universitiesProximity to colleges or universities

How long will it take for most How long will it take for most families to get to your office?families to get to your office? Convergence of major highways or Convergence of major highways or

surface streetssurface streets

Associating with Other Associating with Other ProfessionalsProfessionals

Co-tenancyCo-tenancy Each professional has separate practice but Each professional has separate practice but

share space and certain expensesshare space and certain expenses Are these professionals you want to be Are these professionals you want to be

associated with?associated with? Do you share similar expectations, goals, Do you share similar expectations, goals,

financial realities?financial realities? Group practiceGroup practice

Contractual arrangements, degree of control Contractual arrangements, degree of control over work load and patient populationover work load and patient population

Financial arrangementsFinancial arrangements

Renting an OfficeRenting an Office

Avoid medical office space if possibleAvoid medical office space if possible Look for a Class A building that’s Look for a Class A building that’s

well maintainedwell maintained Proximity to other mental health or Proximity to other mental health or

primary care professionalsprimary care professionals Amenities such as free parking, Amenities such as free parking,

appealing landscapingappealing landscaping Negotiating a lease Negotiating a lease

Negotiating a LeaseNegotiating a Lease

Utilize a commercial realtorUtilize a commercial realtor Begin looking 4-6 mo. prior to occupancy Begin looking 4-6 mo. prior to occupancy Expect concessions, more with a longer leaseExpect concessions, more with a longer lease Build-out requirements and costsBuild-out requirements and costs

Anticipating future practice needs Anticipating future practice needs Larger than standard office size, 180-250 sq ftLarger than standard office size, 180-250 sq ft Sound proofing – walls, ceilings, doors, and Sound proofing – walls, ceilings, doors, and

windowswindows Admin office, break room, storage, running water?Admin office, break room, storage, running water? Costs are amortized over the life of the leaseCosts are amortized over the life of the lease

February 16, 1 PM ESTFebruary 16, 1 PM EST

Part IIPart II

Financial Planning and Financial Planning and MarketingMarketing

February 23, 1 PM ESTFebruary 23, 1 PM EST Part IIIPart III

The Nitty-grittyThe Nitty-gritty