If you’re a physician ready to take the leap into practice ownership, you may be asking one of the most important questions of your career: Should I buy an existing medical practice or start my own from scratch?

There’s no universal answer—it depends on your specialty, goals, location, and risk tolerance. But understanding the pros and cons of each option can help you make an informed decision and set yourself up for long-term success.

Buying an Existing Medical Practice

Buying an existing practice can offer a quicker path to revenue and an established patient base, but it also comes with legacy challenges.

Benefits

• Immediate Revenue: Patients, staff, equipment, and infrastructure are already in place.
• Established Reputation: A known name in the community can reduce marketing costs and build initial trust.
• Proven Systems: Billing, EMR, scheduling, and vendor relationships are already functional.
• Easier to Finance: Lenders often view an existing, cash-flowing practice as a lower-risk investment.

Considerations

• Inheriting Problems: You might take on outdated technology, inefficient workflows, or even a toxic staff culture.
• Limited Flexibility: You’ll have to work within the existing structure, location, and brand—or invest more to change them.
• Due Diligence Required: It’s important to evaluate financials, payer mix, staff contracts, and local competition.

Starting a New Medical Practice

Starting from scratch gives you full control, but it also requires more time, capital, and patience.

Benefits

• Your Vision, Your Way: From workflows to branding to staffing, everything is built to match your values and preferences.
• Modern from the Start: You can choose the latest EMR, design an efficient layout, and create a patient experience that reflects current expectations.
• Scalability: You control how and when to grow.

Considerations

• Slower Ramp-Up: It can take months—or years—to reach consistent patient volume.
• Higher Risk: Without an existing patient base or revenue stream, you’ll need more upfront capital and a stronger marketing plan.
• Heavier Lift: Credentialing, lease negotiation, vendor setup, compliance, and hiring all fall on your plate.

Buying Into a Medical Practice Partnership

Buying into a partnership can offer the benefits of ownership without starting from zero or taking on the full burden of running a solo practice.

Benefits

• Shared Risk: Expenses and administrative responsibilities are split between partners.
• Built-In Mentorship: Senior partners can provide guidance and continuity as you transition into ownership.
• Path to Equity: Many buy-ins are structured over time, letting you gradually increase ownership without a large upfront payment.
• Stability: Joining an established group can mean a steady referral base and streamlined operations.

Considerations

• Complex Agreements: Partnership contracts must clearly define roles, compensation, buy-out clauses, and dispute resolution.
• Less Autonomy: Decision-making is shared—you’ll need to be comfortable compromising.
• Cultural Fit Matters: Misaligned values, clinical philosophies, or communication styles can lead to long-term friction.

What’s Right for You?

Ask yourself:

• Do you want to hit the ground running or build something from the ground up?
• Are you more comfortable adapting someone else’s system or creating your own?
• Are there established practices for sale in your area and specialty?
• How much risk and time are you willing to take on?

No matter which path you choose, you’ll need a solid business plan, a trusted team of advisors, and the right financial partner.

Practice Financing Options for Physicians

At Panacea Financial, we understand that physicians need flexible, tailored financing to make practice ownership possible. Whether you’re buying a long-established internal medicine office or launching your own dermatology clinic, our practice loans are built with you in mind.

Ready to Take the Next Step?

Buying or starting your own medical practice is a major decision—but you don’t have to make it alone. Talk to us about how Panacea Financial can support your journey into ownership.

Let’s build the future of healthcare—on your terms.