SWOT Analysis of a Medical Private Practice

A case study on the website MomMD (2013) recounts the startup story of “Dr. C,” a woman who left practices owned by others in order to start her own medical practice. By performing a SWOT analysis on this case study, it is possible to understand the benefits, drawbacks, opportunities, and challenges afforded to doctors who wish to own their own businesses.

An obvious strength of the organization is that it is exclusively owner operated. This gives the owner incredible flexibility and decision-making power for determining the growth of the business. Without partners or shareholders to answer to, Dr. C can make her own decisions for how her business is run and can factor in elements such as quality of life, quality of the staff’s life, maximum patient comfort, and so on instead of having to only answer to a bottom line and profit margin. Dr. C contrasts her experience of seeing her first child for short amounts of time during her residency. Being the owner-operator allows her to create a better balance of work and family life for her. Another strength is the technological level of the practice. The case study describes a “paperless office,” where computers for e-monitoring and documentation are present in every room (2013). In addition, “Dr. C says that running a paperless office allows her to spend more time with her patients” (MomMD, 2013). This increases efficiency, quality of care, and typically increases customer satisfaction because they get more time with their doctor. 

Weaknesses for this practice are easy to identify. First, it is obvious from the case study that the owner has little business experience. Every part of establishing the business was new, and while the owner now has experience for starting a company, future challenges could present a significant drag on the viability of the business. For example, if Dr. C has to change locations because the owner of the building she is leasing sells it, she will have to spend time, money, and energy into figuring out how to move her practice efficiently and in a way that causes minimal disruption for her clients and is also in accordance with whatever ordinances or laws she would have to follow. Another weakness is the amount of debt this business owner is carrying. Per the case study, Dr. C was not approved for conventional loans through banks, presumably because of the medical school loans she is carrying. She had to find an outside lender to get the money, and while the study says the rates were similar to those of a bank, they were probably a bit higher because it is a private institution. From the article, it sounds as if Dr. C had to finance all of her start-up costs, which, for a medical practice, can be quite high. 

An opportunity for this business is an opportunity for all businesses in this field—healthcare is one of the fastest-growing industries, and the upcoming implementation of the Affordable Care Act means that Dr. C should have more patients for her practice and not have to worry about competition as much as other industries with much smaller growth rates. Another opportunity that Dr. C has is the opportunity for collaboration. The case study mentions that she has an arrangement with a colleague for emergency or vacation coverage, but there is also an opportunity for more collaboration with other professionals in her area to offer more services and share costs and patients. Some of Dr. C’s patients followed her to her new practice, so there is little reason to believe they would not support a collaborative effort.

Threats to this organization include elements of both opportunities and weaknesses. Just as the Affordable Care Act creates an opportunity for more clients, similar state and federal legislation can create challenges for this particular industry. The owner will need to do due diligence to understand the laws and regulations that any newly enacted legislation brings. Another threat to this business is the necessity the owner has to pay two loans—a medical school loan and business loan. If the business is not substantial and sustained, Dr. C may be facing cash flow problems, and if competition were to move into her location, she would have less flexibility over the prices she charges or money she would need to make.

Overall, this case study fort starting a private practice echoes similar themes from other entrepreneurial stories—high initial expense and time and energy that must go into a learning curve are balanced by flexibility and a greater sense of purpose. A SWOT analysis of this case study finds that debt may be the biggest issue for this practice in terms of giving the owner and operator the full freedom and flexibility she should enjoy from having her own practice, and that her industry will likely continue to grow, giving her opportunity and a responsibility to stay on top of all required legislation. 

Reference

MomMD. (2013). How to start your own medical practice, one doctor tells her story. Retrieved from http://www.mommd.com/bcstartpractc.shtml.