I know many people who want to become physicians and eventually open their own practice in whatever specialty they choose, since it gives them more freedom than a hospital job. It also allows them to take a lot of profit home from insurance companies. After learning about the different business structures in Dr. Simon’s lectures, I think the best approach would be an LLC for a Professional Corporation (PC), depending on the state.
A sole proprietorship would be extremely risky for a physician, especially because of medical lawsuits and how everything the physician worked so hard for could easily be lost after a mistake. A partnership also introduces the same issues, and it even adds more liability, one can say, because if the partner does something wrong, the other partner will be affected.
With an LLC or PC, there is flexibility and protection. The corporate veil would protect the physicians, of course, and innovation can be implemented with this protection. With the advent of AI, physicians could find unique ways to better treat their patients by using AI to make diagnostic platforms or quick patient history retrieval software. This can all be done without the physicians’ personal assets being put at risk. They could also work with biomedical engineers and other tech people to build these new technologies.
From taxation, the pass-through taxation of an LLC is ideal for a business in the early-stage, since profits will only be taxed once based on the owner’s personal return. This is unlike a C-Corp that faces double taxation. However, with growth, the physician’s business can be turned into a C-Corp.
I think a big factor would be time; however, since physicians would have to balance patient care and business development at the same time. However, with the proper team, physicians could use their place in healthcare to create solutions from a different point of view and find things that truly work for patients.
Do you think physicians should focus their entrepreneurial efforts on improving patient care delivery through telehealth and clinics or on innovation with new devices and software? Which one do you think has a greater long-term impact on patient care, and if you think it’s both, then at what ratio should each effort be conducted?
This is a great question to ask, especially in today's technologically advanced society where physicians are now able to provide telehealth services. In my opinion, if a physician were to start their own business, I would recommend that they take the opportunity to be a part of both fields/aspects of healthcare. That means being involved in both improving patient care delivery through telehealth and clinics and driving innovation with new devices and software. I believe that both of these aspects have a long-term impact on patient care. The way I see it, I would consider advancements in telehealth and clinical care to take on the more social aspect of healthcare. While many people don’t talk about or consider the social aspect of healthcare it is still a very important factor that plays a big part in having an immediate impact on expanding access to care and addressing disparities, which are still issues that exist in some parts of the country. Whereas innovation on medical devices takes on the more technical aspect and can really dictate the longevity of a patient's life. In terms of how physicians with their own business should balance the two, I would probably choose a 60/40 split. Where 60% of their time is spent on those clinical practices, and 40% of the time is spent offering critical, firsthand insights to companies into how these technologies affect real patients. To me, this helps to make sure that innovation remains practical in clinical settings and relevant to the reality of both the physician and the patient. That being said, how do you think physicians can best balance their time and resources between providing direct patient care and contributing to medical innovation, especially given the demanding nature of clinical practice?
Physicians branching out into entrepreneurship can have positive effects on healthcare. However, access can also be an issue with newly developed technologies. Not every community will equally benefit from those innovations. Telehealth, for example, requires that patients have reliable access to the internet. Also, with advance medical devices and Ai tools to help with healthcare are often started in large hospitals or clinics which are already wealthy, which can then unintentionally widen the gap. The question would then be if physician entrepreneurs should think more about equity when developing their ideas, especially if they are just starting out. Should they first innovate in the directions of reaching as many people as possible, even if it means smaller profits at first? Or should they focus on financial growth to grow their business, then expands to projects about making their healthcare more accessible once they are stable.
I think both improving patient care delivery and innovating with new technology are equally important for physicians who want to start their own practice. Telehealth and clinics help expand access to care and make treatment more convenient, while new devices and software can improve accuracy, efficiency, and long-term outcomes. In the long run, I’d say focusing about 60% on patient care delivery and 40% on innovation would create the best balance, ensuring patients receive quality care now while still investing in the future of medicine.
