Choose the Right Practice Location (It's Never Too Late)
Susan Schultz, DC, MHSA
Selecting the right location for your chiropractic clinic can be a time consuming and overwhelming task, but it is one of the most important decisions any doctor of chiropractic can make, whether you're starting a new practice, moving to a new location or coming to grips with the fact that you may not be in the right location. A number of factors should be addressed when performing due diligence in choosing an optimal site. Here's what you need to know.
When selecting a practice location, it is crucial to complete a thorough market assessment to ensure you attract the demographic that will support your business model.1 Demographic data reveals lifestyle and health care attitudes in addition to population size, all which impact your customer draw. Let's look at some of the key components:
Your Target Demographics: Who Are You Looking to Serve?
What is the geographical area/radius of focus and does the population reflect your targeted demographics?
Identify the area (city / street) and mile radius you expect to serve.
Identify the age, gender, income level, payer mix, and lifestyle patterns to determine the likelihood of success for your scope of practice. Different age groups and genders present with their own health care demands and pay sources.
Research community activities. For example, an area engaged in numerous athletic events will support a sports-based clinic.
What local businesses, schools and industries could impact your practice?
Occupational statistics can be found on census websites. For example, if you plan to focus your practice on worker's compensation or ergonomics, knowing these stats work toward making a data-driven decision.
Scope Out the Competition: Do You Stand a Chance?
Who are your competitors and how do you compare? Here's how to find out:
Research local newspapers, community groups, business websites, social media and the local chamber of commerce to get a snapshot of health care providers in the area.
Identify direct and indirect competitors, their strengths and weaknesses, and what you can learn from them.
The age of providers in the area will reveal future shortages or surpluses so you can estimate provider demand. Clinic websites commonly offer the number of years they have been established.
Are there existing practices that have affiliations with each other or local industries/businesses? This information is frequently advertised on clinic, payer or industry websites.
Understand how your practice differs from established providers in the area to shed light on the direct competition and to project market share.
Create a map to determine the location of direct competitors.
Investigate Current Consumer Opinion of Your Services
How do current patients view the type of service you plan to offer? If patient satisfaction in the area is not very good, support for a new venture may not be forthcoming. Research social media (Healthgrades, Yelp, Facebook, etc.) for patient reviews.
Demand Forecast: Can Your Practice Survive Into the Future?
What is the future volume growth? Check census population projections for growth / decline over the next five- to 10-year period.
Real Estate Considerations
Planning to lease, own or build? Building a clinic from the ground up is slow and expensive, with the added burden of maintenance. You could get stuck with a residual value if you don't stay.
Leasing can be more affordable, especially when starting out. Retail strip malls have provided quality space for many urgent care clinics. Humana-owned Concentra clinics have found success in storefronts in malls and shopping centers.2 Initially, focus on generating revenue and managing the growth of your practice.
Traffic counts are usually available on city planning websites. High visibility and high traffic patterns are desirable attributes. Even locating on the wrong side of the street can make a huge difference.
Adequate signage capabilities are essential to attracting business and easy identification. This is a marketing tool with a one-time expense.
Many business schools advocate locating near a Starbucks or Walmart as a shortcut to extensive marketing research. These companies have invested considerable time and money in doing their own analyses and determining location feasibility if you want to leverage their consumer research. Andis Robeznieks describes this as the "Starbucks seal of approval."3
Sufficient parking is crucial. Determine the number of parking spaces needed based on expected daily volumes. The ease of getting into and out of the parking lot is just as critical.
First-floor health care clinics are more favorable, but if you locate on a higher floor, then an easily accessible elevator is essential.
Other Factors to Keep in Mind
Availability of space, staff, equipment, insurance, and other resources.
Are there any legal barriers to setting up a practice in this area?
Demographic data provides the information necessary to select a prime location that leads to a successful clinic with sustainable growth. Take the time to do it right.
References
Patel H. "Siting Your Next Retail Clinic? Follow the Coffee Smell." The Advisory Board, The Growth Channel, Dec. 2, 2013.
"Retail Clinics Fill Empty Storefronts in Malls." The Advisory Board, Daily Briefing News for Healthcare Executives, Jan. 14, 2015.
Robeznieks A. "MedStar Looks for 'Starbucks Seal of Approval' When Picking Outpatient Sites." Modern Healthcare, 2015.
Backrodt AK, Smyth JP. "Strategic Business Planning, Linking Strategy With Financial Reality." Healthcare Financial Management, November 2004.
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