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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Custom Business Plan
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017

Nurse Practitioner's Practice SWOT Analysis

 

Strengths

 

With a shortage of the number of doctors within the United States, the demand for people that can practice as a nurse practitioner is astounding. For these professionals, especially in rural areas, the income of licensed nurse practitioner's rivals that of physicians. This trend is expected to continue as there are very few new medical schools that can train physicians to keep up with demand. Additionally, many states now allow NPs to practice independently in their own stand along facility. The general requirement is that a medical doctor is associated with the practice for when more complex issues arrive. The gross margins generated by nurse practitioner's are extremely high given that this is a service based business. Generally, the startup costs for a new nurse practitioner's practice range from $50,000 to $200,000 depending on location. It is important that an owner have a substantial amount of cash on hand early in the life of the practice as accounts receivables can take up to 120 days to process.


Weaknesses

 

Continued changes to private insurance and publicly funded healthcare systems are always an issue for these types of businesses. Historically, reimbursements rates rarely increase. As such, this is the primary weaknesses for these types of practices. Competitive issues are minimal as demand for quality healthcare far exceeds supply.

 

Opportunities

 

For most NP practices, the best way to expand revenues is through the continuous hiring of associate practitioners that can increase billings. In states where demand for healthcare is extremely large, it is very easy for an established nurse practitioner to develop additional practice locations. Many states are encouraging new practices given the shortage of people that can treat minor medical issues.

 

Threats

 

As discussed in the weaknesses section, changes to reimbursement policy are always an issue for these businesses. This is an ongoing threat faced by all healthcare businesses. It is heavily driven by a volatile political environment. As such, it is imperative that a nurse practitioner practice owner be properly aware of these issues at all times. However, given the strong demand for NP services, moderate changes to reimbursements should only have a modest impact on profitability.


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