Opening a doctor's clinic in rural Manitoba, Canada, involves a number of expenses, both one-time and recurring. While a precise figure is difficult to pinpoint, the total initial cost can range from $70,000 to over $100,000, with monthly operating costs averaging around $6,000.
Initial and Capital Expenses
The initial investment for a new clinic includes several key areas:
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Practice Setup: You'll need to cover fees for name reservation ($45), business registration ($60), and, if incorporating, articles of incorporation ($350 for a share corporation).
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Medical Equipment: This is a major capital expense. While new equipment is an option, consider gently used or leased equipment to save money, especially for rapidly changing technologies like in dermatology.
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Office Space and Renovations: Securing a suitable location is crucial. A space of approximately 2,000 square feet is often sufficient, with rent costs averaging $2,000 to $2,500 per month. You should also factor in potential renovation costs.
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Technology and Vendors: Essential systems include electronic health records (EHR) and revenue cycle management (RCM). These can have an initial setup cost of about $5,000, with monthly service fees averaging $700.
Ongoing Operating Costs:
After the initial setup, you'll need to budget for regular expenses to keep the clinic running.
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Staffing: Initially, you may hire a single employee who can handle multiple roles, such as reception and medical assistance. A good estimate for initial monthly staffing expenses is $3,000.
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Insurance: Both general liability and medical malpractice insurance are required. General liability is less expensive at around $1,000 annually, while medical malpractice insurance can range from $5,000 to $15,000 yearly, depending on your specialty and location.
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Professional Dues: Costs include medical association dues and membership with organizations like the Canadian Medical Protective Association (CMPA).
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Utilities and Services: This includes internet, phone, and other essential services.
Financial Support and Incentives:
To help with the costs and challenges of opening a rural practice, there are several programs and agreements in place:
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Physician Services Agreement (PSA): In Manitoba, a new agreement provides increased funding for physician practices to help with recruitment and retention, particularly in rural and northern communities.
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New to Practice Program: With $300,000 in annual funding from the Manitoba government, Doctors Manitoba offers a program to mentor and support new physicians in their first five years of practice. This aims to reduce burnout and isolation and can provide practical support, such as assistance with settling into a practice.
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Grants and Funding: While direct grants for clinic startups may be limited, there are federal programs and other initiatives that may offer support for things like green and accessible retrofits, or for specific research projects. The Manitoba Accessibility Fund (MAF), for example, offers one-time grants of up to $50,000 for businesses to remove barriers and increase accessibility.