Starting your own Medical Practise
You are taking your first step as a Clinician Owner and managing your own Practise! You have a couple options and variations on how the operation can work for you. Generally speaking the larger the space/practise the greater the passive income that you can attain. With that said there is slightly more risk and longer upswing to hitting all your numbers and financial milestones. Smaller spaces are easy to get into, have low costs, but also lower passive income potential. Property ownership can be very profitable if done correctly. It has higher risks, but much higher rewards. When done properly you have the potential to double (or more) the value of the property. With that said, finding the right property is not easy and this process take a lot longer than leasing.
Here are the steps to getting yourself into a space with timelines and associated costs
Leasing
Pre Step 1 Performa – Deducing your model
Timelines 1-2 weeks
Cost: Book an Appointment >>
Why?
Its important to understand your practise from a financial model as well as healthcare model. Since we have experience in Practise Management & Project Management we are able to consult you on all fronts.
Step 1 Location Solicitation
a) MMC/Care Space will assess opproetunies on the market and provide a performa on the space. Not all spaces will have the same outcomes. The quality of the space is based on many different factors that we assess before putting an offer in.
Cost: Book an Appointment >>
b) MMC/Care Space and Team will negotiate a lease for you with our expertise.
Cost: Book an Appointment >>
c) Once the general terms are finalized you will go to due diligence & Legal
- Legal Expenses: Book an Appointment >>
- Zoning Certificate: Est. Book an Appointment >>
- Deposit: Est. Book an Appointment >>
Find out how to get these costs subsidized
Why do I need legal representation?
When ever entering into a lease you need legal representation to review your lease and obligations. We are not lawyers and can’t represent you on finalizing the lease. This is something that requires a licensed lawyer. If you don’t have a lawyer we can refer you to one. Think of legal representation as insurance and risk mitigation on a transaction.
Why do I need a zoning certificate?
A zoning certificate is the first step in ensuring that you are able to build your space. Its a requirement by every city and township. We also put this language into an offer to ensure that you can walk away from a space if zoning does not permit the use we are looking for. The cost of the zoning certificate is generally dependant on the size of the unit. There are also fee’s associated with submitting an application by the city and/or township.
- Timelines to find a space: 1 Week to 50 weeks. Depends on the framework of finding a space.
- Timelines to negotiate a space: 1-2 Weeks, mainly depending on the timelines of the landlord and their quickness to respond.
- Timelines for Legal: 2-4 Weeks once they have received a full form lease
- Timelines for zoning Certificate: 4-6 weeks depending on the city timelines
Step 1A Sub Tenants
Before finalizing the lease we will complete our due diligence on signing sub tenant(s). This is very important as we will procure the funding to build your space. We will negotiate the sub-lease terms, and construction fees to build the space.
Cost: Book an Appointment >>
Legal: Book an Appointment >> *Legal representation will need to create a sub-lease and negotiate with sub-tenants legal representation.
Why should I sub-lease to tenants?
In short, its the most cost efficient way to manage a practise. You will have tenants who will support in leaseholds and rent costs. For more nuance, please set up a call/meeting to discuss.
Do I have to sub lease? Can I hire Associates?
For some healthcare professionals you will need to sub-rent, for example Pharmacists. For others you are able to hire or sub-rent, for example Physiotherapists. There are pro’s and cons to structuring these agreements. For details on the best path forward for you practise please set up a call/meeting to formalize your specific strategy
Timelines to procure sub-tenants: 3-6 weeks. Please keep in mind that this will start at the same time as finding a space (concurrently) so its not an additional time constraint.
Why is Care Space so proficient at Sub Leases?
Since we have been in the business for 15 years we have an extensive network of Healthcare Providers. We are able to reach more people to get a deal executed. Since we have such a huge network we are able to find the right financial & fit for your space.
Step 2 Permits
Once we are at this step you have a viable space and are able to being the design of your space. Great news, we have a LOT of experience in building spaces, specifically the flow and function of your space. Since we have experience in Practise Management & Project Management we are able to consult you on all your needs to build the perfect space for your practise.
How will this work?
Firstly you will provide your needs list with a wants list. We will consult you on this process and ask all the right questions to ensure we get everything right. We will discuss room orientation, office space, charting rooms, nursing stations, reception, stage areas and every other detail on ensure you are able to get the space you need to manage your practise.
A) consult on space needs/wants
B) draw the space
C) makes adjustments where needed
Once we have a finalized space we will bring in the rest of team required to finish the application to be submitted for a permit. Generally, this requires an engineer for mechanical and plumbing. Although its not required for permits we will complete an electrical plan as well.
Cost: Est: Book an Appointment >> *dependant on the size of the space.
Timelines: 3-4 Weeks to complete the drawings.
4-8 Weeks for approval.
Can I get these Costs Covered?
Step 3 Build Your Space!
Once you have a permit and are able to build your space we will get to work!
How long will this take?
This will depend on the size of the space. Generally we are looking at 8-20 weeks to get occupancy.
Cost: Est: Book an Appointment >>
Timelines: 8–20 Weeks to complete and attain occupancy
Step 4 Clinic Set Up
Now that your space is underway you will need to get your office set up. Great news, we know how to do this as well!
a) determine your needs and office set up. Ex. what will be in each exam room.
b) Purchase & Install Items
Do I get consultation on setting up the clinic? Yes, Ask about fee’s
Do I get support in managing this set up? Yes, Ask about fee’s
Estimated Costs:
- Per Exam Room: Book an Appointment >>
- Per Reception Station: Book an Appointment >>
- Reception Chairs: Book an Appointment >> (per chair)
- Nursing/Triage Room: Book an Appointment >>
*These Costs would be an average. You can decrease or increase the costs based on your practise style. For example, you can choose to use a laptop or tablet instead of putting a computer in each room which will decrease your costs. Further, you can choose to put a printer in each room or a central location. Detail like these will change the overall costs of your set up.
FAQ
What will my space look like?
We take a lot of pride in building the highest quality spaces. Not only will they look great, but they will be constructed very well. Our clients have always had a great experience and will reference our quality.
What if I want extras or upgrades?
Generally we have a set budget for a high quality space with standard materials. If you would like upgraded materials will will give you a quote to upgrade.
Ex. You would like a commercial grade sneeze guard (12mm tempered glass
Ex. You would like tile rater than vinyl plank.
Can you support me with financing?
Yes, where required we can help you with financing.
Summary
Expected Total Fees & Costs to you:
> Clinic Fixtures Book an Appointment >> *Max (can set up for a lot less if you want)
* This would be for a high end set up
* Not entire cost needs to be upfront. Ex. outfit 1/2 exam rooms
> Clinic Leaseholds Book an Appointment >>
> Soft Costs Book an Appointment >>
> Consultation (Optional) Book an Appointment >>
Therefore Low End: Book an Appointment >>
High End: Book an Appointment >>
* If you are moving equipment and supplies these costs would not apply.
* Leaseholds are dependant on your specific location, size and scope of work
Timelines
Up to 1 year, most likely 6-7 months