Start-Up Costs for a DPC Practice

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Today we talk about the costs of starting a new DPC practice. Do you need $100K to do that or a $million? Nah, most DPC docs start with way less. Let me share some success stories and one article about spending lots of money to start: https://northcountrynow.com/stories/l… Start lean and grow.

AI Summary

DPC Magic: Start-Up Costs for a DPC Practice is a short (~5-minute) Friday tip video by Shane Purcell, MD, aimed at doctors considering or starting a Direct Primary Care (DPC) practice. The main point is that startup costs do not have to be huge. While some practices spend $50k, $100k, or even $2 million, many successful DPC doctors launch for under $20,000—and some for as little as $10,000.What you actually need.

Purcell lists the practical basics:

  • Space
  • Computer and cell phone
  • EMR system
  • Basic supplies, exam table, chairs
  • Malpractice/practice insurance
  • Stethoscope and similar essentials

These items typically do not require a large outlay. Rent can vary by location (higher in big cities), but the core setup is similar nationwide.Real-world examples

  • A Michigan DPC physician started with about $10,000, now has 30–40 patients, and is already breaking even.
  • In contrast, he references a news story about physicians in Canton, New York (a small town of ~12,000) building an 8,500-square-foot clinic with 10 exam rooms on 2.5 acres at a reported $2 million cost. He notes he cannot personally imagine taking on that kind of debt even after 11 years in DPC with a full panel and multiple doctors.

He emphasizes he does not know the Canton group’s full business plan and is not criticizing them—the takeaway is simply that most new DPC doctors do not need to spend that much.Core adviceStart lean: get the minimum space and equipment, begin seeing patients, reach break-even quickly, then grow into a larger or nicer clinic over time. You do not have to go broke or borrow millions to launch a viable DPC practice.He invites viewers to email him at [email protected] and links the Canton article in the description.

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About Shane Purcell, MD

Dr. Purcell is board certified family physician working in Anderson, SC. He received his medical degree from Mercer University in Macon, GA and completed family medicine residency at AnMed Health in Anderson, SC. After completing his residency, Dr. Purcell worked in a private group practice for 3 years before opening his own cash-only primary care clinic in 2005. As he built his cash-only clinic, he was also working part-time in a local urgent care facility. In 2008, he purchased a dormant medical clinic on the “wrong side of the tracks” and opened an urgent care and primary care clinic. After gaining his freedom from third-party captives, Dr. Purcell and a colleague formed the first direct primary care clinic in Anderson County in 2015. In 2019, he transitioned to full-time direct primary care and sold his urgent care. The direct primary care model has brought about a restoration of a relationship with patients broken by third-party middlemen. Now, he can offer more access and more of his time to patients. Dr. Purcell firmly believes that the direct primary care model is the last hope for health care in America. Dr. Purcell is an active member of several medical organizations including the DPC Alliance, Free Market Medical Association, and American Academy of Family Physicians. He is the former Chair of the Direct Primary Care Member Interest Group for the AAFP and a founding member of the DPC Alliance and the Carolina’s Free Market Medical Association. He was elected to the Advisory Committee for the DPC Alliance in the Fall of 2018 and completed his term in 2021. Dr. Purcell is the author of Magic, Pixie Dust, and Miracles: A Guide to Direct Primary Care and Employers which shares how to connect DPC with employers of all sizes. He has spoken about this topic and DPC in general at the DPC Summit, DPC Nuts and Bolts conference, Hint Summit, AAFP FMX, Carolina’s Free Market Medical Association, TedexFurman, and DPC Alliance Mastermind sessions. He continues to speak to residents and student groups about DPC as well.