Considering the Business of Medicine As a PM&R Resident Physician

With the universal lack of business training in our allopathic and osteopathic medical schools, it becomes imperative for medical students and resident physicians to acquire, at a minimum, a fundamental understanding of basic medical business practices. Principles of accounting, practice management, and economics will encompass everything that you do as a physician, particularly if you enter solo or group private practice. Basic business skills will enhance your ability to provide quality patient care in today’s rapidly changing medical environment.    

Perhaps the most important piece of business paper pertinent to a physician is the medical business plan.  This document likely is the type of business report that you will create during your career as a physiatrist. The purpose of a medical business plan is to convince a bank or other financial institution to support a practice or an organization. The best way to persuade others to support your practice is to convey a convincing narrative about the future of your practice. Your story must be detailed and pragmatic, with a focus on communicating your ability to successfully and soundly manage a medical business. A good medical business plan is your opportunity to put your best foot forward. 

The core components of the medical business plan are:

• Vision, Mission and Values

• Market Analysis

• Competitive Analysis

• Strategy

• Products and Services

• Sales and Marketing

• Operations and Employment

• Financials

I encourage all residents to consider spending time during their PGY-2 through PGY-4 years composing a basic medical business plan.  Even if you join an established practice, this exercise will benefit you in many ways.  You will develop a basic business acumen that will increase your ability to handle your daily responsibilities with your group or organization.  Also, you will increase your initial ability to participate in the management of your practice if you eventually become a group partner.  Taking an active role in learning some of the basic business principles will help you today, tomorrow, and well into the future. Moreover, you will equip yourself to provide the best patient care possible. 

Daniel Roth, MS

droth@kcumb.edu