Doctors spend years developing deep expertise in diagnosing and treating patients. However, managing the business side of healthcare is a completely different challenge—one that many physicians are not formally trained for during medical school. Topics like financial planning, marketing, and leadership are often missing from traditional medical education.
Yet, as physicians advance in their careers and explore opportunities to expand their influence and income, the importance of business and entrepreneurial skills becomes increasingly clear.
Insights from the Sermo community highlight this reality. When physicians were asked whether they had started or planned to start a medical business, the responses showed both interest and uncertainty:
- 27% already operate a medical business
- 12% intend to launch one within the next 1–3 years
- 10% expect to start one after more than three years
- 45% are not interested in starting a business
- 6% selected “Other”
These findings show that while medical entrepreneurship attracts some physicians, many feel underprepared due to limited training and resources. For those entering this space, having the right business knowledge is essential. This article outlines the most important skills physicians need to successfully run a business.
10 Essential Business Skills Doctors Should Develop
To succeed in both clinical practice and business ventures, physicians must build a strong foundation in several key areas. Below are ten critical business skills, supported by research and insights from the Sermo community, while actionable tips were mostly provided by Tyler York, the CEO of Achievable:
Financial Management
A solid understanding of finances is fundamental to running any business. According to a recent poll, 46% of physicians identified upfront expenses (such as equipment and leasing) as the biggest obstacle to starting a practice.
Grasping concepts like budgeting, cost management, and profit margins allows doctors to effectively manage revenue and expenses.
Interestingly, 74% of physicians said they wish they had learned financial management earlier in their careers. Whether determining service fees or analyzing return on investment, financial literacy plays a major role in long-term success.
An infectious disease specialist shared on his LinkedIn:
“Biggest hurdle: being independent, as many practices are hospital-owned. Funding: do it yourself, so you don’t owe anyone. Let an outside agency do billing; it’s one less headache. Success is if you can remain independent in this day and age.”
Business Strategy & Planning
Every successful venture begins with a clear vision supported by a structured plan. Developing a comprehensive business strategy helps physicians define their goals and anticipate operational challenges.
When surveyed, half of physicians reported having a business plan, while nearly one-third did not, and 19% did not own a practice. Data suggests that physicians who prioritize planning are more likely to achieve sustained growth.
Legal & Regulatory Compliance
Only about 37% of U.S. medical schools offer dedicated instruction on legal and regulatory topics. Even when included, the focus is often limited to malpractice rather than broader compliance issues.
As a result, 36% of physicians in the survey conducted by our correspondent wished they had learned more about legal matters earlier in their careers.
Understanding regulations (such as patient privacy laws and licensing requirements) is essential for avoiding liability and ensuring compliance in any healthcare business.
Marketing & Branding
Nearly 75% of patients begin their search for a physician by reading online reviews. In today’s digital-first environment, marketing and branding are essential for attracting and retaining patients.
Notably, 22% of physicians said they wish they had learned marketing earlier.
Doctors who actively engage in digital marketing (through social media, professional networks, and patient reviews) can build strong visibility and attract consistent patient traffic.
Leadership & Team Management
Creating and maintaining a strong team is one of the biggest challenges in healthcare businesses. With an industry turnover rate of 18% in 2023–2024 and declining engagement levels, effective leadership is more important than ever.
Physicians must learn how to recruit, train, and manage staff while building a positive workplace culture that supports excellent patient care.
In fact, 44% of surveyed physicians identified leadership as a skill they wish they had developed earlier.
Operations & Workflow Optimization
About 40% of physicians reported that improving operational and technological efficiency would have significantly benefited their early practice.
Streamlining workflows reduces burnout and enhances service quality. Optimizing billing processes, appointment scheduling, and patient flow can improve revenue and reduce administrative stress.
Technology & Innovation
Patient expectations for digital healthcare solutions have increased significantly. Tools such as artificial intelligence, telehealth platforms, and patient portals are transforming care delivery.
Physicians who stay informed about technological advancements can position their practices as modern, efficient, and patient-focused.
Sales & Customer Service
At the core of every practice are the patients. Strong communication and empathy lead to better care outcomes and higher patient satisfaction.
Even as healthcare becomes more technology-driven, the human connection remains vital. Patients who feel heard and understood are more likely to follow treatment plans and trust their physician.
Sales skills in medicine are not about persuasion—they’re about clearly communicating the value of care, building trust, and encouraging patient engagement. These skills also support referrals, collaboration, and advocacy within healthcare systems.
Risk Management & Crisis Planning
Every business faces risks, and healthcare is no exception. These risks include compliance issues, malpractice concerns, and financial disruptions.
Having contingency plans in place helps practices respond effectively to unexpected challenges and maintain operational stability.
Scaling & Business Growth
Once a practice becomes stable, growth becomes the next logical step. According to recent data, 68% of healthcare leaders view expansion as a top priority.
Growth may involve increasing patient capacity, adding new services, adopting telemedicine, or upgrading systems. However, without proper business knowledge, scaling can lead to inefficiencies or loss of competitive advantage.
A physiatrist on Sermo shared:
“Starting a medical business is challenging but satisfying. With many existing businesses, growth and maintenance are difficult, potentially compromising professional performance for profit. Remember, medicine is a service; profit and reputation should not taint a doctor’s work. When establishing a medical business, carefully assess population and health sector needs, maintain strong training, update knowledge, and secure financing, all while adhering to medical ethics and prioritizing patient health and well-being.”
Why Business Skills Matter for Doctors
Physicians operate at the intersection of healthcare and business, where both require strategic thinking and decisive action.
“The complexities of delivering medical care are rapidly changing,” says Dr. Richard Pitts, senior medical director at St. Joseph Heritage Healthcare. “There’s a constant pressure to find more effective ways to deliver healthcare while improving quality and still holding the line on costs.”
Doctors with business knowledge can manage practices more efficiently, reduce expenses, and enhance patient satisfaction. Even those not pursuing entrepreneurship can benefit from skills like financial literacy, leadership, and marketing.
Ultimately, combining medical expertise with business understanding creates opportunities for better care and stronger professional growth.
New Practice Models
Physicians traditionally choose from models such as solo practice, group practice, hospital employment, or academic medicine. However, newer collaborative models are emerging:
Accountable Care Organizations (ACOs)
ACOs bring together healthcare providers to deliver coordinated, high-quality care. They aim to improve outcomes while managing costs for specific populations.
Independent Physician Associations (IPAs)
IPAs consist of networks of independent practices that collaborate for shared benefits like contract negotiations and access to technology, while maintaining independence.
Healthcare Policies Influencing These Models
HIPAA
The Health Insurance Portability and Accountability Act (1996) enforces patient data protection. Compliance costs in 2025 can range from $80,000 to $120,000 annually, depending on the organization.
MACRA
This law changed physician reimbursement by shifting from volume-based to value-based care. It introduced the Quality Payment Program (QPP), which includes MIPS and APMs, linking payments to performance.
Primary Care First
This model rewards practices based on patient outcomes and efficiency. While it offers financial incentives, poor performance can result in penalties.
CPC+ and Medicare Advantage
These programs emphasize care quality, patient management, and operational efficiency, requiring practices to adapt to evolving regulations.
How to Open an Independent Practice
Based on the consultative inputs provided by the financial management expert, Andreas Jones of KindaFrugal, the following are the vital steps required:
1. Create a Business Plan
Outline your goals, services, financial projections, and target audience. Update the plan regularly as your practice evolves.
2. Secure Financing
Funding is a major challenge. Options include loans, credit lines, and equipment financing. Plan carefully to manage startup and operational costs.
3. Choose a Legal Structure
Select the right structure (LLC, S-Corp, etc.) based on taxes and liability. Consult professionals to ensure compliance.
4. Obtain Licenses and Certifications
Ensure all legal requirements are met, including medical licenses and certifications.
5. Choose Location and Set Up Technology
Select a location with good accessibility and install systems like EHRs and billing software.
6. Hire and Train Staff
Recruit qualified professionals who align with your vision. Provide proper onboarding and establish efficient workflows.
7. Develop a Marketing Strategy
Use digital tools, reviews, and networking to build a strong patient base.
8. Maintain Efficient Operations
Continuously refine workflows, analyze data, and improve processes to ensure smooth operations and patient satisfaction.
The Takeaway
In today’s evolving healthcare environment, physicians must go beyond clinical expertise to succeed. Business knowledge is no longer optional—it is essential.
Understanding finance, strategy, compliance, and marketing enables doctors to run efficient practices and deliver better patient experiences.
However, as chimed in by the experts on AI automated business support firm, AI Secretariat, not every physician needs to master every skill equally. The relevance of each depends on career goals and work environment. Those in large systems may focus more on leadership, while independent practitioners need deeper business knowledge.
The key is identifying which skills matter most for your situation and focusing your efforts there—benefiting both your patients and your professional future.
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