Expenses are a fact of business life, private physiotherapy clinics being no exception. Regardless of how well you market your business and attract patients through your doors, owners will never get ahead without controlling important expenses. Here are some of the more common expenses that private practices must deal with on an ongoing basis:
1. Creditor payments
Buying supplies on account instead of paying cash is a fact of business life. Important suppliers are your creditors until you pay them, so make appropriate book entries in the months when your purchases are paid. Set up accounts with clear payment terms and negotiate early settlement, volume and “just in time” discounts to better serve your patients.
2. Cash payments
Unlike creditor accounts, you will have to make cash payments for certain goods that you use on a daily basis to treat patients. Infrequent purchases from suppliers who insist on cash are common, so keep 2-3 days of expenses on hand.
Physiotherapists in private practice need at least a few of the following insurance products:
- Professional liability
- Risk insurance for equipment
- Public liability insurance
- Employer’s liability insurance
- Loss of earnings (e.g. due to injury)
- Insurance for your practice’s location
- Car insurance (for mobile physiotherapy)
4. Capital expenditures
The excitement of opening a private practice may lead you to overspend. Carefully consider what you need to get started and then budget accordingly. Among the most important items to consider are:
- Work-related apparatus like ultrasound machines
- Office furniture
- Staff uniforms
- Security systems
- Computer equipment
5. Other expenses
Every year, there are a series of regular expenses that are important for the proper administration of your clinic:
- Academic and professional trade journals .
- Annual fees to your professional order and other health/physiotherapy boards and organisation.
- Computer supplies and support
- Items to improve the waiting room ambiance (e.g. flowers, magazines, special lighting, etc.)
- Repair and maintenance contracts
Also remember that like all businesses, you will need to budget for some marketing fees. Speak with us about getting an interactive website to market your clinic – we can help you out by cutting your costs, freeing up your time and reducing your risks.