Many people consider medicine a lucrative career, but they may not consider all of the expenses involved in operating a medical business.
For example, the physician starting their own medical practice has to spend tens if not hundreds of thousands of dollars to get a medical degree. Establishing a medical practice means obtaining facilities, securing licensing and insurance, paying support staff and obtaining expensive diagnostic and treatment-related equipment.
Doctors need to charge a premium for the services that they offer to recoup all of the investments they’ve made in their practice and continue covering operating expenses like rent and worker salaries. When patient visits drop, those running their own medical practices could be left with more expenses than revenue.
Delaying necessary medical care has become common practice
Insurance coverage and financial concerns have always limited the access of individuals to modern health care services. Over the last year, domestically and abroad, hospitals and private practices alike have felt the strain of dwindling patient visits.
Reports about overcrowded facilities combined with concerns about pathogen exposure have led to more people than usual deferring both emergency and routine health care procedures. Those showing signs of serious conditions or infections may delay seeking care until their symptoms become unignorable, while others may just cancel non-emergency appointments indefinitely.
The current aversion to visiting medical facilities and timely care could have a direct, harmful impact on medical professionals running their own businesses.
Restructuring could help a business overcome a temporary downturn
Although medical care will always remain a necessity, it can be hard for professionals to bridge short-term issues that decrease their revenue. After all, you still have staff members who need their paychecks, payments due on financed equipment and lease obligations to your landlord.
A business bankruptcy could help your medical practice regain its financial equilibrium. Through the discharge of certain unsecured debts and the renegotiation of other obligations, your business could potentially maintain its staff and protect its investments in important equipment and infrastructure while also acknowledging the current limitations on revenue.
Bankruptcy for businesses can be a complex but worthwhile process if you need to make short-term sacrifices to protect the long-term success of your medical career.