The big benefits of banding together

The big benefits of banding together

Consultants’ groups may be an increasingly attractive option for those in private practice in the current financial climate. Our Managing Director Jane Braithwaite has written an article for Independent Practitioner Today which tackles a question on the lips of many.

I have been happy as a solo independent practitioner, but with pressure on costs and other factors, I am thinking of setting up a group. What advice would you give me?

A lot of doctors in private practice choose to form groups with like-minded colleagues. Some decide to go down this path soon after starting independent work, while others transition into it with a large amount of private practice experience. 

There are myriad reasons to form a group, ranging from personal to financial. Let’s look at why you might want to form a private practice group and examine some of the important issues you might want to consider.

There are a number of benefits to group formation, which I explain more fully below:

Income benefits

As a solo practitioner, you only have so many hours in a day. You might find that the number of tasks you have to complete seems overwhelming.

Not only do you have to undertake all the clinical tasks that caring for your patients involves, but you are responsible for all the necessary, but not always exciting, activities that a thriving business throws up.

When working by yourself, your income is directly related to the number of patients that you can see and treat. If you want to increase your income, generally speaking, you have to work more. 

The number of hours can add up quickly, risking burnout and making it difficult to provide the same high-quality care to each patient.

Additional complications include the expense or lost income related to taking holidays and how to find clinical cover in the event of your absence.

Working as part of a group can negate some of these problems. Clinical work can be evenly distributed and, overall, you can see more patients. You might even be able to take a holiday or two.

Personal and professional benefits

Being a solo practitioner has the potential to be a lonely experience. 

Those working in the NHS may be used to large departments with many peers and juniors. Getting a second opinion before making a decision, asking for help or even just socialising with colleagues can be rewarding.

For some, working alone may be isolating. Forming a group has the potential to negate some of these problems and maybe a positive experience.

Having peers who are working towards the same collaborative goal as you can provide a support system. 

This can be valuable when things are going well, but essential when there are difficulties. Having a sense of community can be really important when dealing with the trials and tribulations of modern clinical practice.

A group can allow collaboration when working on specific projects that will benefit your clinical service. Together you might be able to provide investigations or treatments that would not be viable, either practically or financially as a solo practitioner.

The colleagues that you bring together to form your group may well have different, but complementary, skill sets. This ability to offer a wider range of treatments will ensure that the pool of patients that you can manage is greatly expanded and that a greater part of each patient’s treatment journey can be spent with the group.

Financial benefits

It is no secret that the costs of practice are increasing. The bills for rooms and premises, secretarial support, indemnity cover, marketing and accountancy are all steadily going up. 

The fees paid by medical insurers, like Bupa, are not increasing in step with the rising costs of medical practice. 

The self-pay market is becoming more prominent, but patients without insurance are likely to be much more price-sensitive than those using other payment methods.

A group can help offset some of these cost increases by allowing much greater efficiency in the business side of your practice. This can include money invested in advertising your practice, accountancy and book-keeping and medical secretarial costs.

Some insurers may have a preference for dealing with groups rather than solo practitioners, and you might find this reflected in increased patient referrals or ease of dealing with re-imbursement.

The realities of setting up a group

Setting up a group is a significant commitment. As the one who is initiating this, you may find that, naturally, you will act as the leader and manager of your peers.

Running a group requires a different set of skills than managing a solo practice and there can be a steep learning curve.

Before starting, you will need to be prepared for the extra time required to run the group practice, both due to increased administration and also from managing the other people involved in your endeavour.

When starting this new business, it is easy to get carried away with thoughts of all the possibilities, from more patients to better treatments and perhaps even greater profits. 

It is easy to focus on the excitement and not to have the difficult but essential conversations and agreements that have to happen right at the beginning.

Everyone needs to be clear about what expectations they have going into this enterprise, both of themselves and of each other. Will everyone commit the same amount of time to the group? How will profits be distributed? Does everyone have an equal say in the running of the group?

All of these questions need to be addressed and agreed upon before the group can start work.

One item that is often not discussed is what will happen if the group is not the success that you hope. The reasons for this could vary from the costs being too high, not bringing in enough patients or disagreements among members of the group. 

Dissolving the group

If you have to make the difficult decision to dissolve the group, how will the financial obligations be dealt with and how will any remaining profit be distributed? 

It is important to consider how each member of the group would transition back to independent practice if they wish to leave the group or if the group was to come to an end.

You may find that embedding routine or regular reviews, where you each openly discuss issues within the group and follow up on past decisions, makes sure that everyone feels involved in the management of the business. 

These meetings have to allow all partners to freely bring up problems, as having issues fester can cause significant problems down the road.

Your patients come to you for specialist advice and you should do the same when forming your group. 

Accountants and legal professionals will be able to steer you in the right direction, be it the requisite contracts with your colleagues, whether your business should be a limited company or a partnership, or how to ensure you are paying the correct taxes.

Forming a new group should be exciting, both professionally and personally. Careful planning at the outset, backed up with expert professional advice, will hopefully lead to your future success.

If you have any specific questions that you would like answered in upcoming editions, please do feel free to get in touch. 

Jane has written a follow up article looking at how a consultant group may have developed over time. Read more here.

 

If you have any specific questions that you would like answered in upcoming editions, please do feel free to get in touch. 

Info@designatedmedical.com or call 020 7952 1008

Accountancy vs Bookkeeping

Accountancy vs Bookkeeping

For somebody who doesn’t work in finance, it can be difficult to distinguish the difference between accounting and bookkeeping, as there are some administrative areas that can overlap depending on the structure of a business and how many employees it has working in its finance department.

However, while bookkeepers and accountants share common goals, they do support your business in different stages of the financial cycle.

Bookkeeping is more administrative, recording financial transactions. Accounting is more subjective, giving you insights into your business’s financial health based on the information provided by bookkeepers.

If you’ve ever wanted a clear definition between accountancy and bookkeeping, keep reading.

What is a Bookkeeper?

Bookkeeping is a legal requirement for all businesses of any size to carry out, and it refers to the recording of the financial transactions of a business, whether a sole trader, a partnership, or a limited company.

A bookkeeper will record all transactions either manually or within an ERP system like XERO and keep copies of all invoices, receipts and evidence of these incomings and outgoings.

The role of a bookkeeper will include:

  • Recording financial transactions
  • Posting debits and credits
  • Producing invoices
  • Preparation of financial statements (balance sheet, cash flow statement, and income statement)
  • Maintaining and balancing subsidiaries, general ledgers, and historical accounts
  • Completing payroll

What is an Accountant?

An accountant has expert knowledge surrounding taxes and accountancy. A business needs to consider more than just the in’s and out’s calculated by a bookkeeper, the right accountant will guide and act as financial business partner, ensuring all allowable expenses are claimed and all decisions are tax efficient to not only the business but the owners, directors, and partners.

The role of an Accountant will include:

  • Preparing adjusting entries (recording expenses that have occurred but aren’t yet recorded in the bookkeeping process)
  • Reviewing company financial statements
  • Analysing costs of operations
  • Completing income tax returns
  • Aiding the business owner in understanding the impact of financial decisions

Designated Accountancy Services

All business owners want to have complete control of their business finances and have an up-to-date view of their financial performance. Our team of Designated accountants are experts who work with you on a flexible basis, whether you need support one day a month, one day each week or more.

Designated is a Xero Bronze Partner and our finance team are Xero certified advisors, trained by Xero to deliver you the best financial support.

Do you wish you had answers to questions like these?

  • How much tax will I need to pay next year?
  • How much profit did we make last month?
  • What do you mean by Tax Digital?
  • Am I managing payroll in the most effective way?

If so, then our Accountancy services may be your solution, please get in touch:

Vicky Garbett, Head Of Accountancy vicky@designatedgroup.com 020 7952 1460 

September Edition of Stay Connected

September Edition of Stay Connected

Stay Connected

In this month’s edition of Stay Connected, our Head of Accountancy has taken the work out of the Government’s mini budget and gives you the salient details of how it will affect you and your practice.

When was the last time you analysed your patient journey or even how your business functions in general? This month we look at how you can best do this to ensure your practice thrives!

We have examined how you can streamline and improve your patient journey to make onboarding new patients easier and ensure that they return to your practice long-term, helping boost patient retention and increase profits.

Our specialists have examined how strategic reviews can benefit your practice, helping you identify your strengths and weaknesses. Conducting a well-rounded evaluation across all elements of your business can help you adapt and grow and remove any issues before they become detrimental.

And finally, we know that NHS wait times are encouraging people to turn to private medical care. We have looked at 5 things private practices should consider to meet the needs of self-pay patients to help grow your practice and ensure their needs can be met.

Best wishes,

Designated Medical Team.

July Edition of Stay Connected

July Edition of Stay Connected

Stay Connected

Hello and welcome to the July edition of our newsletter.

he sun is shining and everyone’s getting ready for the first Summer of restriction-free travel, more importantly, business seems to be booming for many of you, which is great to see!

For the last few months, one of the top news stories each day has been related to the increasing cost of living in the UK. In this issue, we are taking a more in-depth look at the cost-of-living crisis and what this means for employers.

Our Managing Director, Jane Braithwaite has also been busy answering Independent Practitioners’ FAQs on how to take advantage of the self-pay boom to increase your profitability and grow your business.

We would like to round up the issue by introducing you to our management team who head up our specialist teams across the business.

We are here to help provide professional services and advice for your business’, if you have any questions please don’t hesitate to contact our friendly team.

Best wishes

Designated Medical Team

March Edition of Stay Connected

March Edition of Stay Connected

Stay Connected March

Hello and welcome to the March edition of our newsletter.

e have a lot to cover this month so we’ll jump right in! Our HR and Recruitment Manager has written an insightful article this month on diversity and inclusion. We shine a light on recruitment tools, resources and techniques to help meet your diversity goals.

We take advice from experts at XERO on how to manage cash flow and income, particularly in these inflating and politically turbulent times.

At Designated we are delighted to introduce our newest member to the leadership team. Our new Head of Medical PA Services, Jo Mitchelson. I’m sure she will be in touch with you all shortly. In the meantime, please don’t hesitate to get in contact with her at jo@designatedgroup.com

Finally a few admin notes, we have updated the company terms and conditions and these are available on our websites should you wish to review them.

Going forward we will be distributing our newsletters on a quarterly basis, this helps us to ensure we are serving up the most valuable content and information within every communication.

Best wishes

Designated Medical Team

January Stay Connected

Subscribe To "Stay Connected" our Monthly Medical Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!