Starting a plastic surgery practice straight out of residency or fellowship is an exciting endeavor, but it can also come with significant financial and operational challenges. For new surgeons, partnering with a private equity firm can help to make this process smoother from the start, providing the capital and know-how needed to get a new practice off the ground and well on its way to success.
Here’s a closer look at some of the specific ways that a private equity partnership can benefit new surgeons looking to start their own practices – and how to know when PE might not be the right fit.
Help with Startup Costs
One of the biggest hurdles for new plastic surgeons is the high cost of launching a practice, particularly while also juggling student loans. It can be difficult to secure a business loan for the amount needed to start a practice from scratch, leaving many new surgeons feeling stuck.
Private equity partnerships can provide access to capital that can help to cover startup costs like leasing office space, hiring staff, purchasing medical equipment, branding and running marketing campaigns. This not only reduces the financial burden of new surgeons but also sets them up for success from the get-go, without having to “trial and error” their way through many common learning curves when beginning a new practice.
Easier Access to Equipment and Supplies
Starting from scratch often means limited access to the latest technology and surgical equipment. Private-equity-backed practices benefit from group purchasing power, which can lower costs for supplies, implants and state-of-the-art equipment. In many cases, new surgeons can tap into resources that existing practices within the PE network already use, giving them a head start with advanced technologies and operational software and processes.
Faster Growth Potential
Private equity partnerships can accelerate the growth and expansion of a new practice much faster than would otherwise be possible. In addition to providing the capital for expansion, experienced partners can help to handle hiring, business operations, marketing and other aspects of growth that usually take much more time to organically build from scratch. This allows new surgeons the time to focus on delivering high-quality care and building a loyal client base. This support can also open opportunities for multi-location growth or adding specialized services sooner.
Access to a Network of Successful Peers
Being part of a PE-backed network means new surgeons gain access to experienced mentors and peers who have already successfully built and managed practices. This network provides valuable guidance, from clinical best practices to business strategies, helping new surgeons avoid common pitfalls and make informed decisions as they grow their practice.
When Might PE Not Be Right for a New Surgeon?
While private equity partnerships offer many benefits, they are not the right fit for every new surgeon. Some may prefer complete autonomy over clinical decisions, practice policies, staffing choices and the overall direction of their practice – all areas where a PE partner may provide guidance or set certain standards. It’s important for new surgeons to weigh the benefits of support and growth against the desire for complete independence before entering such a partnership.
Interested in learning more about starting your practice with the right support? Call us at 561-956-8041 to explore options that fit your vision for success.
