• SUBSCRIBE
  • WHAT TOPICS ARE YOU INTERESTED IN?

    Step 1 of 3

    NEXT Skip

    HOW OFTEN WOULD YOU LIKE UPDATES ?

    Step 2 of 3

    EMAIL ID

    Step 3 of 3

Get The Latest Updates

SUBSCRIBE

What are costs involved in setting up a medical practice

  • Highlights

  • Requisites for setting up a medical practice.

  • Breaking down the total one-time investment needed

  • How to differentiate your practice?

  • Financing the initial investment

According to the WHO, India needs 80,000 more hospital beds every year to meet the demands of its growing population. Currently, the ratio between hospital beds and patients is 1:1668. In such a scenario, starting a self-owned practice that bridges the gaps in patient care while using the latest technologies would be the ideal way of creating a niche for yourself in the healthcare sector.

Depending on the location and other components, the cost of setting up a clinic may differ from practice to practice. Here are the requisites for setting up a new practice, and how much they cost:

MCI Registration

Before settling on software or equipment, review the various options available to you. Whether you choose to go in for equipment financing or machinery upgrade to manufacture goods faster and more efficiently or invest in office software, it is important that you make a wise decision.

Other legal requirements:
Registration with local authority, professional tax registration, shop act license, bio-medical waste registration, income tax, etc. Premises and Infrastructure:
Premises and Infrastructure:
Clinic space, furniture and fixtures, registers, and other miscellaneous items for smooth functioning of the practice.
Basic Equipment:
This would be required depending upon the nature of your practice. The need for special equipment such as oxygen cylinders, ECG monitors, pulse oximeter, nebulizers, etc. will vary according to the services provided by the clinic.
Support staff:
Nurses, a pharmacist, a receptionist, ward boys, cleaning staff, etc.

COMPONENT PRICE RANGE (In Rupees)
1 MCI Registration 1000-10,000
2 Premises 20,000-2,00,000 per month (on lease, depending on the area/locality and size of the practice)
3 Infrastructure and Legal Requirements 2,00,000 – 5,00,000
4 Basic Equipment 1,00,000-2,00,000
5 Advanced Equipment 10,00,000 and above
6 Support Staff and Recurring Expenses 1,00,000-3,00,000 lakh per month
7 CME Up to 1,00,000 per annum
8 Total One-time: Rs.13- 17 lakhs
Per month: Rs.1,30,000 – 5,10,000

Based on the overview of requirements for establishing a practice, it is imperative to get all these elements together.
Apart from this, you may also want to be the one with an efficient practice that is technology-driven and runs on innovative and smart digital techniques. Here are some technology must-haves that will help you sustain your practice and move ahead despite severe competition:

Electronic Health Records (EHRs):

EHRs are the latest technological advancement that provide a seamless flow of patient information such as medical history, radiology reports, laboratory findings, vital signs, personal statistics, etc. in one place. They are more efficient in extracting medical information about the patient anytime and anywhere; thus, helping the practitioner in creating a long-term association with the patient.
What is costs? The price of an EHR varies from Rs. 9 lakh - Rs. 45 lakh depending upon its functionality and performance.

Practice management tools:

Day-to-day operations of any medical practice would include scheduling appointments, tracking patient inflow, generating clinic related reports, insurance claims and billing tasks. Practice management tools or software can cater to these requirements efficiently.
What it costs? Between Rs.16, 000 - Rs. 32,000, depending on the type (in-house or web-based) and functionality of software.

Additional Information:

Technological advances such as telemedicine, video-conferencing, innovative practice management tools such as self-management literature, care-guides, and helplines are being widely used for improving practice efficiency and sustainability.

The Finances:

Starting a medical practice, like any business, requires a strategic plan and a certain investment. A robust project proposal with clearly defined objectives would pave way for a self-owned practice that you are proud of. Medical professionals can choose to fund their new clinic with a Business Loan for Doctors- which is a smart financing option custom-made for requirements of doctors.

Doctor Loans - Everything You Wanted To Know

Instant Approval Form

Please enter your first and last name
Please enter 10 digit mobile number

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?

Next up

PRODUCT GUIDANCE

How GST affects healthcare: What medical professionals need to know