Medical Accountants working in collaboration with Medical and Dental Practices
Syedain & Co has serviced professionals in the healthcare industry for over 30 years. In that time we have seen many changes, however in recent years we are seeing some of the most radical changes in healthcare since the creation of the National Health Service.
Doctors and dentists don’t just need to know medicine but they must increasingly view medicine in a business context. Knowledge of marketing, sales and strategy are necessary elements for the successful surgery of the future.
Therefore medical professionals require greater business knowledge to grow, and strategically run their practice in addition to traditional tax and accounting services.
Should you set up as a Sole Trader, Limited Liability Partnership (LLP) or Limited Company?
Doctors and dentists should explore the various options from operating as a sole trader to setting up a private practice group. The decision will be determined by a number of factors such as whether you’re a GP, hospital doctor, general or specialist dentist.
As an example hospital doctors can work in a similar way to barristers in the legal profession whereby hospital doctors share common facilities rather like a barrister’s chambers, but perhaps the most exciting development has been the ability of GP doctors and dentists to set up a limited company or a limited liability partnership, which became available to doctors and dentists from 6 April 2001.
Setting up as a limited company or a LLP may not only provide significant tax advantages depending upon the financial situation of the practice but it also gives greater legal protection.
In a general partnership, all the partners are liable for their collective or individual negligence and debts. However in a limited company or LLP, liability is limited. This means that the partners’ personal assets would not be at risk unlike in a general partnership or when operating as a sole trader.
The Future is Competition
As healthcare is increasingly shaped by market forces, doctors and dentists who have their own practice or are looking to start their own practice are finding themselves competing with each other and the private sector much more.
In the case of general practitioners they are finding themselves competing for Alternative Provider Medical Services (APMS) contracts.
In a report by Pulse (2008), it found that primary care trusts (PCTs) are systematically favouring private firms over GPs in APMS tenders. It found that 91 per cent of tenders were being won by private firms meaning that GPs were only being awarded 9 per cent of the contracts according to an analysis of data from 97 primary care trusts.
This is all the more startling considering 51 per cent of bids for APMS contracts had come from GPs. In light of these trends GPs may well have to form their own companies to have any chance of beating the private sector in the tendering process.
Indeed we are already seeing the seeds of change take root according to a survey conducted by Doctor, the weekly medical newspaper, which found that approximately 40 GP practices were being managed by private companies in 2006; while proposals to create polyclinics further complicates the challenges facing general practice.
Dentistry
In the case of dentistry we have seen an increased shift towards private dental care. The market is growing rapidly and is expected to grow by 38% between 2006 and 2011. A growing market combined with regulatory changes mean that competition between dental practices will get fiercer. Dentists will have to further integrate business strategy into their practice if they are to grow and survive.
A growing market combined with regulatory changes mean that competition between dental practices will get fiercer. Dentists will have to further integrate business strategy into their practice if they are to grow and survive.
We are in the early stages of a revolution taking place in healthcare. Indeed every industry is experiencing profound changes and healthcare is no different. These are revolutionary times. Therefore doctors and dentists need to develop the strategic capabilities of their practice to meet the healthcare challenges of the 21st century.
How we can help you
Our medical accountants and management consultants help your practice rise to the challenges shaping healthcare, advising you in how you need to take your practice forward to meet present and future challenges.
We provide all aspects of accountancy, tax and management consulting services that you would expect as well as services that are designed for the healthcare sector. This includes:
Bookkeeping
Cash flow analysis
Company secretarial services
Implementation of accounting and financial systems and controls
Information and web technologies (eMedicine)
Management accounting
Payroll administration
Preparation of company accounts
Income tax projections
Tax compliance (Self-Assessment tax returns, corporation tax, VAT)
Tax planning
Management consulting
Partnership agreements
Our medical accountants and management consultants’ work according to business functionality since the same insights and management approaches are predominantly applied in every industry.
This gives our team greater knowledge and insight as they draw upon experiences from working in multiple industries. It enhances the problem solving process, enabling us to generate creative solutions to realise our client’s objectives.
Strategy - Our Healthcare Advisory works with you to:
1) Identify the services and infrastructure necessary to compete as a healthcare provider. Maximise your QOF points and develop strategies to win APMS contracts
2) Develop the financial strategies to determine how your practice should deploy its financial resources and raise capital to fund the growth of the practice
3) Identify the most suitable type of company structure, contractual routes and strategic models to increase the competitiveness of the practice, and delivery high quality healthcare exploring contracts such as: Alternative Provider Medical Services (APMS), General Medical Services (GMS), Personal Medical Services (PMS), Specialist Personal Medical Services (PMS) contracts and Practice based commissioning
4) Manage your business operations so that you can concentrate on treating patients
5) Develop wealth management strategies to help shape the life you want.
We believe a multidisciplinary approach is required to deliver the highest quality healthcare in a rapidly changing complex world; integrating finance, economics, management and medicine into the effective delivery of primary care.
Consequently our medical accountants and management consultants strive to build strong team working relationships with our clients.
We work with clients primarily in Birmingham, across the West Midlands, East Midlands and London. Call us to arrange a consultation and see how we can help you grow your practice and plan for your financial future.