Medical market research is the key to overcoming the many hurdles a physician might encounter when looking to open a private practice.
Launching your medical practice after years of working in hospitals can feel like navigating a minefield while blindfolded—it's scary and full of risks. Many physicians leap into private practice with grand visions but end up getting overwhelmed by the financial strain or being unable to meet their patients' needs.
Understanding the market you plan to compete in isn't just a nice-to-have; it's the cornerstone of building a thriving private medical practice. Appropriate medical market research helps identify potential patients' needs and gaps in the care your competitors offer so you can make informed decisions at every step as you start your private practice.
This guide will discuss how physicians can leverage market research to create a profitable practice that stands out in the crowded healthcare landscape.
Medical market research is gathering and analyzing information about the healthcare market you plan to compete in to make smarter business decisions. Think of it as a diagnostic test to determine your practice's potential.
Some of the crucial questions market research helps to answer include:
This approach ensures you're making data-driven decisions instead of relying on guesswork.
The healthcare industry is changing rapidly. Patients are more informed than ever, competitors are more aggressive, and technology is changing how care is delivered. Market research isn't just helpful for physicians transitioning to private practice; it's essential.
Let's explore why skipping this vital step is typically a very costly mistake:
The high cost of flying blind
Picture this: you're an anesthesiologist eager to start a private pain management clinic. You rent a space, invest in expensive equipment, and open your doors, only to realize there's little demand for the services you offer in your area. You're left with shiny equipment, increasing debt, and insufficient patients to sustain your operating costs.
When you open a clinic without researching your market, you risk investing in services and equipment that don't align with patient needs. Our medical office marketing team helps you avoid pitfalls by clearly showing what you should prioritize.
Fierce competition
There are competitors in every market, and the healthcare industry isn't exempt. Radiology departments, urgent care centers, and other specialists might already dominate the space you plan to enter. This is a common scenario when physicians purchase an MRI machine and require that patients only use their machines to access consultations when there might be independent imaging centers on every street corner in the city.
Market research reveals the strengths and weaknesses of your competitors, allowing you to carve a unique niche.
For example, patients with spinal leaks typically opt for image-guided epidural blood patches over unguided blood patches because they have more trust in the technology. Market research could help determine if competitors in your area offer similar services. If they don't, your new practice could fill that gap.
One of the most significant benefits of medical market research is uncovering lucrative gaps in care that might not be obvious to you. We can help identify areas where demand outpaces supply and position your new practice as the go-to provider by analyzing patient needs, competitor services, and emerging trends.
Here's what the process looks like:
Medical market research sheds light on patients' needs that aren't adequately addressed. For example, the spinal leak market is now estimated at over $1 trillion due to misdiagnoses and misconceptions that prevent many patients from getting the care they need.
This creates a large market for anesthesiologists looking to transition to private practice since the demand for spinal leak care is significantly more than that of physicians offering effective, comprehensive care.
To make things worse for patients with spinal leaks, many hospitals aren't set up to provide the long-term care they need. Research shows that roughly 60% of patients with spinal leaks will still be symptomatic 18 months after the initial puncture.
A great deal of longitudinal research shows that patients who had a single patch and patients who had no patch after a dural puncture during labor are similarly symptomatic years later. While there are attempts to point to the inefficacy of blood patches here, research has already proven concretely that epidural blood patches are the gold standard and highly effective when administered correctly.
What is ineffective is a lack of personalization of care and long-term follow-up after a single epidural blood patch.
Some insight into the standard experience can be that of Olivia Newton-John, who gave birth at Cedars-Sinai Medical Center and had a dural puncture during labor. In her autobiography, she describes receiving a single epidural blood patch and then spending the next several years in agony whenever she was upright.
You might wonder why nobody on the medical team for a singer-actress as famous as she was in the 1980s recognized the need for another blood patch attempt. Unfortunately, a common theme in patient reports is that of continued symptoms, with physicians declaring a single patch attempt as healing the patient and any subsequent symptoms falling under a different label, such as vestibular migraines.
While studies have shown that many practices used to diagnose and treat spinal leaks today must be updated, change has been slow.
Many physicians still rely on outdated techniques like unguided epidural blood patches despite research showing that image-guided patches are less likely to cause accidental dural punctures and more likely to be effective. This gap creates a highly lucrative opportunity for physicians looking to invest in fluoroscopy and are willing to get the training required.
Patients can also be underserved because of accessibility barriers. Providing telemedicine consultations for initial evaluations can help break down these barriers, as a recent study shows that women with chronic conditions often value the convenience of online consultations before committing to in-person visits.
There are many gaps in the healthcare industry for specific demographics or unique conditions. Some of the high-demand niches emerging today include:
Understanding the high-demand niches that fit your medical qualifications will empower you to create tailored services and marketing campaigns that resonate deeply with potential patients.
Market research frequently reveals what competitors are doing wrong – or not doing at all. Some of the competitor shortcomings that research can help to highlight include:
Advancements in medical tech create opportunities within the spinal leak care market that early adopters can leverage like:
Investing in research and development within these technological trends allows you to position your practice with diversified revenue beyond the clinical side. This approach shines a spotlight on your brand as forward-thinking, attracting patients who seek the best care possible.
Let's create a scenario highlighting how medical market research increases the likelihood of your private practice's success.
You're an anesthesiologist who has decided to open a private practice that specializes in spinal leak care:
Problem
Patients report dissatisfaction with the care they've received at hospitals and the inadequate follow-up care. Market research shows some of these patients are spending over $20,000 a year on conservative pain management like IV saline that doesn't provide a permanent fix or a significant enough resolution of symptoms to allow them to return to work or have a high quality of life.
Market gap
Few providers work off current literature on spinal leaks, while most continue using outdated information and diagnostic tools. Many physicians tell patients spinal leaks are self-limiting despite longitudinal studies saying the opposite.
Your research also reveals that hospital anesthesiologists are sometimes reluctant to administer epidural blood patches because reimbursement from insurance providers can be as low as $75 per patch. Additional research shows that the spinal leak care market is now valued at over a trillion dollars.
Solution
You invest in the tools needed for a fully equipped ASC, including fluoroscopy, drastically reducing the risk involved when epidural blood patches are administered. You also study the most current literature on spinal leaks, which indicates that most patients will need long-term care and multiple epidural blood patches.
You also invest in updating yourself on the latest research for low-risk diagnosis approaches, such as learning the Bern score and how to read brain MRIs. The Bern Score combined with brain MRIs is a more accurate way to diagnose spinal leaks and much safer than outdated diagnostic approaches like lumbar punctures, which can cause dural punctures and have a high post-dural puncture headache (PDPH) rate.
Current research supports the use of non-invasive MR myelography before using a CT myelogram to look for the site of the leak due to the high disease burden of the lumbar punctures causing additional spinal leaks during the CT myelogram.
Spine MRIs can provide some insight for patients allergic to contrast dye. Additionally, a popular approach among anesthesiologists noted anecdotally is using standard CT scans to look for calcified osteophytes in suspected spontaneous CSF leaks.
Research also supports using an empirical epidural blood patch in spontaneous and iatrogenic spinal leak cases. In one patient report, a patient noted that she eagerly paid $750 per patch in an anesthesiologist’s cash-based business because the physician did not require her to have a lumbar puncture and because the physician told her he would keep repeating blood patches as needed, providing her with peace of mind as far as continuity of care.
You create a subscription-based business model that charges $100 monthly for access to your services, $250 per quarterly visit, and $800 per epidural blood patch. We can estimate two to three patches annually per person, with multiple attempts often needed initially.
After a successful epidural blood patch, the dura remains weak at the site and continues to heal for months after closure. Patients commonly accidentally reopen leak sites as long as eight months after a successful patch as a result of activities such as straining during a bowel movement.
Within this financial structure, the patient gets comprehensive care that restores their quality of life for $4,000 yearly, $16,000 less than they previously paid for inadequate care. You earn over $800,000 with 200 patients using your services. Your practice quickly becomes your area's leading choice for spinal leak care, drawing patients willing to pay cash for effective, quality care.
Emerging as a leading provider allows you to monetize consultations as you educate other physicians, patients, and communities about the best practices for spinal leaks.
Figuring out profitable gaps in healthcare your private practice can focus on requires reliable data. These include:
Combining these data sources will help you decide which services to offer, what equipment to buy, and the most effective ways to market your practice.
Modern patients aren't just looking at physicians' expertise—they want convenience, transparency, and personalized care. Your ability to meet these expectations, from online scheduling to telehealth options, can make or break your practice.
Market research uncovers what patients value most in your niche, arming you with the information you need to tailor your services accordingly.
Researching the medical market you plan to compete in should be one of the first steps you take if you're planning to transition to private practice. Some of the things you can do to gain valuable insights about your future patients include:
The first question your research should answer is who your ideal patients are based on your medical expertise. For example, are you targeting:
Understanding who your ideal patient is allows you to tailor your practice to address their needs.
Ensure there's enough demand for the services you plan to offer your ideal patient before investing in training, a space, or equipment. Tools like patient surveys, local demographic studies, and online forums can provide valuable insights.
For example, if you're considering specializing in spinal leak care, research might reveal that patients are frustrated by how challenging it is to find providers who offer image-guided procedures. This unmet patient need could be the competitive advantage that sets your practice up for success.
Competitor analysis is vital to market research, as it provides information about competitors' services, marketing strategies, and patient experiences.
Identify who your competitors are and evaluate their strengths and weaknesses. If some of the services they provide seem popular with patients, look for insights on ways to deliver an even better service.
For example, the radiology department at Mayo Jacksonville offers initial consultation visits as telehealth for spinal leak patients across state lines. Patients must put down a $5,000 cash deposit if they do not have insurance that Mayo takes. Patients are doing so across the Southeast region and opting for this location over Duke’s radiology department due to greater accessibility.
The information you gain from researching your competition will allow you to set your practice apart from competitors by using more modern techniques, providing superior customer service, or offering unique services that other providers don't.
Medical market research also includes delving into how care is delivered to patients. Examples of patient preferences you should learn about include:
You can use the answers to such questions to enhance patient experience at your clinic and separate your practice from competitors who might be failing in these areas.
Transitioning from hospital work to running a private practice is a massive undertaking that should be done in phases to allow your clinic to grow as you leverage market research every step of the way.
Starting your transition online is the most cost-effective approach, allowing you to build credibility with minimal operating costs.
Offer telehealth consultations
Patients who require specialized care often value the convenience of virtual consultations. This approach also broadens your reach, attracting patients who might live far from your surrounding area.
Many anesthesiologists transitioning to private practice immediately ask us whether they can perform patches in their local hospital’s emergency room or out of a mobile clinic. It’s time to stop crunching the numbers on how many interventional procedures you can perform and take a step back to practice whole-person care.
Start with non-interventional care, and be clear that you are a fully online practice. In our collection of patient reports, those hesitant to have a procedure state that they would simply like an in-depth review of their case.
Now is the time to learn to read imaging, update yourself on the patient experience and current research, learn how diet plays a significant role in the spinal leak patient’s quality of life, and practice care management, as gaps in care are a substantial barrier that spinal leak patients face.
Some neurology centers, like PANDA Neurology in Atlanta, have cash-based patients at $300 per new-patient visit to see a physician assistant simply to talk over a spinal leak case, as Atlanta area neurologists typically say they will not take on patients with a spinal leak diagnosis in their charts despite these patients commonly having secondary neurological conditions that need to be managed.
In cases such as these, some Atlanta spinal leak patients have had interventional radiology provide telehealth consultations before blood patches and also send in orders for needed brain MRIs, spine MRIs, and so on that neurology refused to manage. Radiology has proven that this is possible, but anesthesiology has a much stronger background that could lead to higher-quality consultations and epidural interventions.
Create educational content
You can position yourself as a leader in the niche you plan to specialize in by creating educational resources, from blog posts to videos tailored to questions your ideal patient may have to build trust and attract partnerships with local organizations.
Once you've built an online following, it's time to expand your capabilities.
Get training based on patient needs
Market research might reveal that your patients prefer image-guided procedures because of factors like their increased safety. It makes sense to upskill and train in fluoroscopy guidance in this scenario.
Start with essential equipment.
Invest in technology that directly impacts patient outcomes. For a private pain management clinic specializing in spinal leak care, that could mean investing in diagnostic imaging tools or advanced epidural kits.
Use market research to guide every decision you make when it's time to open a physical location.
Choose the right location
Proximity to your ideal patient is crucial for your practice's success. Research your local demographics to assess demand and your competition. The fewer competitors around a site, the better.
Offer complementary services
Complementary services provide an additional revenue stream for your practice, so consider adding some that complement your patients' needs. For example, patients with spinal leaks could benefit from nutritional counseling since nutritional deficiencies negatively impact the healing process and are common in this demographic due to extreme, new-onset food sensitivities.
These patients often need more support from their primary care physicians. At times, they seek out functional medicine doctors at $1,000+ per visit, only to receive vast quantities of supplements that often do more harm than good.
These patients need a tailored, research-backed plan. For example, with an enlarged pituitary, patients may be more sensitive to iodine, and this can cause hypothyroidism or hyperthyroidism.
In these cases, patients are often simply medicated by endocrinology with adverse reactions instead of having their iodine levels tested and being educated on the importance of balancing their iodine intake.
Medical market research doesn't just help you catch up with competitors; it positions you as an innovative leader in your niche.
Some of the ways you can harness modern technology to improve patient outcomes and increase your practice's profitability include:
VR-assisted education
Virtual reality tools can enhance procedural accuracy by allowing physicians to visualize blood flow in a variety of patients when administering epidural blood patches, building confidence in physicians’ ability to treat patients across biological diversity.
Improved needle designs
Market research can help to identify better needle designs to reduce risk to patients during epidural procedures.
Tracking post-care recovery
Tools like artificial intelligence (AI), apps, and online platforms are increasingly used to track patients after procedures. Some can even send alerts to physicians when patients need follow-up care.
Incorporating such tools into your practice can lead to better patient outcomes while helping to build trust.
Prioritizing patient experience
Studies show that improved customer service leads to higher patient satisfaction. Simple improvements like offering HIPAA-complaint empathy training to your staff can significantly impact patients' experiences at your clinic.
Many for-profit grants are available to women—and minority-owned businesses, such as the Amber Grant, which distributes $30,000 monthly to women-owned businesses and an additional $25,000 year-end grant for a monthly winner. These grantmakers often want a great story, revenue potential, women/minority ownership, and a community focus on inclusion.
For larger grants, the National Institute of Health (NIH) offers Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants for innovative healthcare solutions in for-profit small businesses with a focus on advancements upon current research gold standards and scalable solutions.
For example, while some physicians hear us talk about the spinal leak crisis and instantly think of prolotherapy as a treatment for spinal CSF leaks, prolotherapy is not backed by rigorous research. Instead, the blood patch is continually noted in research sources as the gold standard in repairing spinal CSF leaks.
The NIH views these grants as an investment in improving Americans' health. Some level of calculated risk must be involved to advance care.
For instance, several anesthesiologists labeled our business model of focusing on nutrition to improve healing, blood quality, and blood patch success rates as risky.
While some physicians are risk-averse, our approach is precisely what the NIH seeks: research-founded risk. Past approaches of wait-and-see while allowing patients to suffer for years haven’t been cutting it and have significantly increased the disease burden in the US, with spinal leaks as an underlying cause. The market is waiting for inventions like a custom needle set-up specific to blood viscosity to reduce shear stress and platelet activation within the needle itself and to reduce accidental dural puncture during epidural blood patches.
Diversifying your practice allows for the improvement of clinical offerings, diversifies your revenue streams, and makes you more appealing to funders.
A strong community education focus can make you appealing to small business grantmakers and generate revenue through partnerships with community-based organizations and continuing medical education courses online for other physicians.
A research and development side in your business can leave you less reliant on a brick-and-mortar side of your business while making you more appealing to the NIH in grants where they are looking to invest in creating scalable solutions more than high overhead for physical locations.
If market research reveals gaps in patient care, consider applying for funding to help address them. Grants can help bring your ideas to life, from educational programs to developing new tools.
Medical market research isn't just one of the tasks you must complete to start a private practice – it's necessary to build a thriving clinic.
Understanding your market, tailoring your services to meet patients' needs, and investing strategically can set you apart from competitors and create a practice that patients trust. Filling these gaps isn't just about profits—it's also about providing comprehensive care to those who need it the most.
Market research ensures that your practice becomes the solution patients actively seek for their health problems. Ready to start learning about profitable niches your new practice could target? Schedule a consultation to get started now.