Joining a Group? You Still Need to Understand the Business of Medical Practice

Are you joining a group that already has admin support, office space and patients waiting for you? If so – congratulations! That’s a huge head start.

It’s also the perfect setup for skipping something critical: you still need to understand the business of medical practice.

When everything is already running, it’s easy to assume you don’t need to know how it works. Show up and start seeing patients. But here’s the truth: you’re not just a clinician. You’re a business.

Even if you don’t need to hire staff, negotiate a lease or set up payroll, you still need to understand what’s in place. Because what affects the business affects you.

And yes, that includes legal and financial responsibilities. Because the CRA or IRS knocking on your clinic door isn’t the fantasy.

Why Understanding the Business of a Medical Practice Actually Matters

You may not be the person actively managing the books. You might never need to be. But you don’t know that for certain.

If only one person in your group understands payroll, overhead, insurance or leases – and something unexpected happens – what then?

Trying to reverse-engineer the business of a medical practice under pressure is not fun. Unfortunately, speaking from experience on this one.

Plus: understanding the foundation is the first step toward building an effective practice — not just an efficient one.

This isn’t about control. It’s about clarity. And clarity in practice management directly affects your health, personal life and financial life.

When you understand how things work, you can actually create win-win solutions that improve your practice instead of just reacting to problems.

Start With These Questions

Don’t worry – you don’t need an MBA. You just need to have an idea of how things work.

Leadership & Roles

• Who is currently managing the business side – legal stuff, payroll, leases, insurance policies, any supply contracts, ordering office supplies, etc?
• If it’s shared, who handles what?

Accounting

• Who is the group’s accountant?
• Are tax documents for employees (+/- yourself) automated? Or does someone need to request them from the accountant then send them?

Overhead

• Where is overhead collected? How much? What is included?
• How often do you submit it?
• Is it fixed or does it fluctuate?

Employee Remuneration

• How and when are staff paid?
• Are payroll remittances handled automatically?
• Who prepares year-end tax documents? (likely the group accountant but worth verifying)

Insurance

• What coverage is already in place? Are all employees covered?
• Does it auto-renew?
• What business insurance policies are active? What does it cover?

Office Logistics

• If renting: How much is rent? How long is the lease?
• If owned: Is there a mortgage? What’s its status?
• Is the practice financially in the red or the green?
• Who handles maintenance and cleaning?
• If you’re adding new procedures (see practice trends post), does current coverage protect you?
• Is there a master list of logins (phone, fax, internet, EMR)?
• What patient communication systems are already in place?

Yes agreed, it can feel real awkward asking these questions when you’re new.

But when you understand the business of medical practice you’re not being overly type A – it’s being responsible. It’s your business too and ultimately your income.

A great group is a truly gift.

Knowing how it works? That’s protecting yourself, your patients and your group.