Most people who are considering starting a healthcare practice are aware of the main medical practice startup costs like equipment, a building lease or mortgage, and liability insurance. However, even the best budgeters may overlook some often-forgotten costs that come along with running your own practice. Whether you’re just starting out on your own or you’re an established practitioner who’s running into unexpected costs, Bankers Healthcare Group has the financing solutions you need to deal with some of these “hidden” costs of private practice.
Self Employment Taxes
When you are your own boss, you’re responsible for taking taxes out of your own paycheck. Self employment taxes include social security and medicare taxes, and you may find that your tax rate is higher than it was when you worked for someone else since you’re now missing out on employer contributions. Typically, as a self-employed practitioner, you will need to make large, lump-sum quarterly payments towards your estimated tax burden for the year.
You probably spend a lot of time dealing with insurance administrators for your patients, but are you neglecting your own health care needs? When you’re self employed, you’ll need to purchase your own health care plan and pay monthly premiums. You may also want to create an HSA or FSA to budget for additional costs.
Gone are the days of two weeks paid vacation! When you work for yourself, you need to plan ahead and budget for some time off to prevent burnout. This may mean closing the doors to your practice for a week over the summer, or handing off emergency cases to a partner. Either way, your income will likely take a hit.
Planning for retirement may be the farthest thing from your mind when you start a private practice, but it’s important to begin saving early on in your career. Consider setting up a SEP IRA or another retirement plan that meets your needs. Even small contributions early on can add up and make it possible for you to retire when you’re ready.
Repairs and Maintenance
Even if you budget for yearly maintenance on your equipment and have an emergency fund for repairs, it can be tough to cover all of your bases. We all have those months where everything goes wrong, and in your practice this can translate to malfunctioning equipment, electrical issues, and a broken window from a bad storm all in the same month. When everything hits you at once, a loan from Bankers Healthcare Group can help you handle it.