The costs of running a  business are daunting for any industry, and healthcare is no exception. There are many costs that healthcare businesses must take into consideration when starting up or expanding operations. From medical supplies to day-to-day expenses, these costs can quickly add up. Understanding the business costs associated with running a healthcare practice is essential to know how to manage your money best and stay in the black while you grow your practice.  

Top Business Costs for Healthcare Practices:

 Planned Expenses

While running a  business involves many set-up costs, the most critical ongoing expenses include wages, rent, utilities, and insurance. The cost of these items should be planned for in advance so you can budget properly. Consider at every stage how much you’re paying each month for these costs and any penalties or discounts that may apply. If your expenses are higher than those of other healthcare businesses, you may need to adjust your practices so that you’re able to keep up with the competition.

Unplanned Expenses

Planned expenses are generally easier to estimate and budget for, unplanned expenses can sometimes wreak havoc on a  business bottom line if money isn’t set aside to cover them. While these costs can be challenging to anticipate, they should be considered to maintain profitability. Some of the most common unplanned expenses are those related to damage and theft. Make sure you have insurance to cover these, or the financial consequences could be dire. While it’s important not to be extravagant, some businesses will also want to include a line item in their budgets for advertising expenses.

Taxes

All businesses must pay taxes on their profits, healthcare businesses may have additional tax considerations that other small businesses do not have to deal with. Make sure you’re well-versed in your state’s tax laws, as many healthcare practices have to file taxes in different states and may come up against unique tax rules. One of the best things you can do to increase your chances of staying on the right side of the law is to speak to a tax attorney who can help you navigate the tax code and ensure that you’re fully protected.

 Employee expenses

Employees are the backbone of any business, but they also come with sizable costs. You’ll have to budget for wages and additional costs that you may not run into with self-employed contractors. These costs can include things such as employee benefits, payroll taxes, and workers’ compensation insurance. Most workers’ compensation insurance is a mandated expense that most healthcare businesses must pay for, and it’s a cost that’s often overlooked. If you’ve hired employees, ensure you factor in a line item for worker’s compensation insurance costs, so one less thing will likely come as a surprise.

Marketing and Promotions

Marketing expenses can be expensive, many businesses underestimate the importance of good marketing for their practices. To stay competitive in your industry, you’ll want to make sure you’re spending money on marketing. These expenses include ad placement and discounts for patients who book appointments online. Most healthcare businesses will find that the best way to get the most out of their marketing budget is by focusing on local SEO services and getting the word out about their practices online.

 Repairs and Maintenance

Healthcare business equipment comes with various costs, including repairs, maintenance, and upgrades. The more complex your equipment is, the higher the maintenance cost. While many healthcare businesses occasionally make significant purchases, it’s essential to budget for minor expenses like repairs and inventory management to continue providing a high level of service and care for your patients.

 Medical Supplies

Doctors and many other healthcare professionals will often have to purchase medical supplies themselves to provide healthcare services to their patients. While some minor expenses are involved, many costs associated with buying medical supplies are easily overlooked. Unlike purchasing many other items included in this list, you will likely be unable to track how much money is spent on these supplies. There are so many different things that you can buy at your local drug store or pharmacy, including bandages, valves, and even food!

Contact MyeMed to Learn How to Manage Business Costs

All these expenses will vary depending on the type of healthcare business you run and its location. Budgeting for all these things is essential for your business to succeed while remaining profitable. For more information, contact us today by filling out the form below: