practice room leasing

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Hello all.

Due to restructuring of our podiatry clinic we plan on leasing out two of our treatment rooms to other allied medical professionals.

Problem is we have no idea what rates to charge or how to roughly calculate such values.

Our clinic is long standing (48 yrs), prestigeous west end/city centre location, full time reception, computerised appointment system/record keeping system etc.

Looking for a osteopath/chiropractor and physio therapist to occupy the rooms on a full time basis.

Any pointers or what would be really helpful, numbers.

If anyone would be kind enough to contact me I can be reached at orthoscot@aol.com.


Thanks in advance

Scott

 

I'd offer a fee split rather than a room rental, at least to start with.

For a self employed new member of a team it would be far more attractive (and lower risk) than having rent to pay.

 

Just looked into this out of interest. Quick google search showed that a day rate for a clinic room in Exeter was £50. In Dorset I saw one for £80. In London best I could find was £25/hour --> so £200 per day based on an 8 hour day.

No idea what city you are in, but based on "prestigeous west end/city centre location" we'll say it's more similar to London than it is Bournemouth?

Warning - some very crude Maths to follow...

Based on £150/day room rental...
"occupy the rooms on a full time basis" = £3000 per month (Mon-Fri, 4 working weeks/month)...
Physio/Osteo charging £50 per appointment...

They would have to fill 60 consultation slots per month just to pay their rent and break even. Could they guarantee they would achieve these numbers from day 1? If not they may even lose money. They would need to fill 100 consultations a month just to make £2000 profit.

Take the flip side - you agree a 50%-50% fee split initially. Now if they fill 60 appointment slots they make £1500. Now they only need to fill 80 consultations in their diary to make £2000 profit. Additionally, there is no conceivable situation in which they can end the month in the red. The worst month they could ever have would be to earn £0 (no patients).

From their perspective, unless they are coming in with a big patient list already, you can see how they may be put off by a room rental initially.

To look at it from your perspective, I can see why you would want to rent the room out (in the example above if there are no patients you still get £3k/month, whereas if you went on a fee split and there were no patients you'd get nothing but still have bills to pay).

But get them on a fee split now, and it is also you who may benefit longer term: Let's say there comes a time when they are 90% utilised (so 288 out of their 320 possible appointments per month are taken - not impossible for a busy Physiotherapist)

They are earning £14,400 per month

On room rental, you get £3000 per month, and they get £11,400
On 50-50 fee split, you get £7200 each.

So as you can see the more utilised a clinician becomes the more beneficial it is for them to be paying room rent, but the more beneficial it is for you to have them on a fee split. Take advantage of this, and get them on a fee split at the start - not only is it much less risk for them when they are starting out, but it will make you a lot more money in the long term in my opinion.