Business Plan Development
Nurse Practitioners can set up their clinics and offer independence practice as long as they comply with the practice regulations for the selected state. There are several benefits of owning an independent practice, but it also requires extensive knowledge and support to run the facility. For a nurse practitioner to establish an independent practice, they require developing an appropriate business plan. The case study used for the essay regards Elizabeth Jones, FNP-BC, who has been in practice for eight years. She has experience in the primary care setting as well as the urgent care setting. She considers relocating to a state that allows for unrestricted independent practice to open her primary care clinic. The assignment regards a development of a Business Plan for the proposed business.
Business Structure, Location, and requirements
The business structure for the clinic will be a form of sole proprietorship for easy management of the business activities. The form of business is easy to manage, and the individual is responsible for the assets and liabilities (Buppert, 2015). It is not necessary to have a formal action to own the sole proprietorship, but the owner ought to obtain all the necessary licenses and permits. The regulations vary from state to state, and industry choice. The proposed business of opening an independent practice setting will be based on Maryland State. The regulatory structure at Maryland is Full Practice, and the regulating agency is the Board of Nursing. For the Full practice, the state practice and licensure law provide for all the nurse practitioners to evaluate patients, diagnose, order and interpret tests, initiate, and manage the treatments. The nurse practitioner can also prescribe medications following the exclusive licensure authority of the state board of nursing (American Association of Nurse Practitioners, 2016).
Goals and Values
The goal of establishing the independent practice facility will be to boost the quality of health care services offered in the region. The values to be embedded in the practice will be honesty, integrity, value for life, and professionalism.
The process of establishing an own independent practice in Maryland requires a comprehensive feasibility study and identification of the requirements to run the facility. The likely requirements include clinical site expenses, employee structure and expenses, supplies, utility expenses, malpractice insurance, continuing education expenses, and the accounting fees (Buppert, 2015). It is also necessary to identify the services to provide and also the projected monthly income to support the independent practice.
Clinical site Expenses– The cost varies by location and size by square feet. The ideal size for a private practice facility ranges from 1200 to 1500 square feet. For Maryland State, the cost of letting the facility is $ 1750 for a 1400 square feet premise.
Employee structure and expenses– A consultant or advisor requires an average of $ 5000 to $ 10,000. The employee structure will entail hiring two medical assistants and a full-time registered nurse for a start whose number will increase progressively. The average pay for a medical assistant is $ 29,370, and that of a registered nurse is $ 65, 470.
Supplies– The average costs for monthly medical supplies is $1500.
Utilities and other overhead expenses– Basic equipment and furnishings that include a computer system, printer copier, filing cabinet with lock, telephone, voicemail, and furniture ranges from $ 50000 t0 $ 65000.
Malpractice insurance-Medical practitioners must have it before processing the medical credentialing paperwork. The costs vary with the location, but the average rates are $4000 to $ 15000 annually.
Continuing education expenses– There is a need to advance the knowledge and expertise requirements both for the practitioner and the staff. Continuing education is an important aspect of enhancing the quality and efficient of care delivery services to the patients. The average costs for the institutions with Maryland are $ 45000 per head. The cost includes tuition, the mandatory fees, the Board contract and the room. The figure may reduce since many of the staff members consider having own accommodation other than taking rooms. Also, the costs regard a person willing to have full-time studies that may not be practical for the staff. Thus, continuing education expense arises when the staff members attend conferences, workshops, and other training sessions.
Accounting fees– The accountants usually charge by the work they perform. For a start-up business, the accountant charges $ 75 to $ 600 to help in formalizing the business structure and the basic tax issues. The other accounting work is paid on an hourly basis, and the average charge is $ 150 to $ 400 for every hour worked.
Services identified to provide (e.g., primary care services, drug screens, DOT exams)
The independent practice facility will offer the primary care services for multiple illnesses, screenings, and also handle some urgent care needs. The types of examination and tests to offer at the facility will be limited at the start, but will increase progressively.
Projected monthly income necessary to support the independent practice-The projected monthly income necessary to support the independent practice is $ 150,000. The income includes all the basic requirements for the monthly supplies and utilities as well as catering for the staff remuneration and continuing education. However, the estimate may vary depending on the prevailing market prices of the items required on a monthly basis. The independent facility should operate for a minimum of six months to allow evaluation of the cash flow and expenditure costs. A break even is expected after a year of operation.
American Association of Nurse Practitioners (2016) State practice environment;
Retrieved from https://www.aanp.org/legislation-regulation/state-legislation/state- practice-environment
Buppert, C. (2015). Appendix 11-A: A checklist for setting up a practice. In Nurse practitioner’s business practice and legal guide (5th ed.). (384-397). Burlington, MA: Jones & Bartlett.
Buppert, C. (2015). Practice Ownership: Legal and business considerations for the nurse practitioner owner In Nurse practitioner’s business practice and legal guide (5th ed.). (351-383). Burlington, MA: Jones & Bartlett.