The Real Cost of Starting a Concierge Medical Practice

The number one barrier physicians cite when considering concierge medicine is startup cost. The fear is understandable — you are leaving a paycheck, taking on risk, and building something from scratch. (If you are still evaluating the income potential, start with our concierge medicine income guide.)

But the actual numbers are lower than most physicians expect. A concierge practice can launch for $75,000 to $200,000 in total startup capital, depending on your model, location, and whether you are building out new space or converting an existing practice.

The bigger risk is not the upfront investment. It is making expensive structural mistakes — wrong entity type, wrong payroll setup, wrong accounting system — that cost far more over time than the initial buildout.

Here is what it actually costs to launch a concierge practice in South Florida, broken down category by category.

One-Time Startup Costs

These are the costs you will incur before seeing your first patient. Not all are required on day one, but most should be budgeted for within the first 90 days.

Most solo concierge practices in Broward County launch in the $100,000 to $175,000 range. Physicians converting an existing practice spend significantly less than those building from scratch.

Monthly Recurring Costs

Once you are operational, these are the ongoing costs that determine your overhead ratio and ultimately your take-home pay.

South Florida Cost Benchmarks

Location drives a significant portion of your startup and recurring costs. Here is what medical office space costs across Broward County:

Note: Concierge practices need less space than traditional practices. You are seeing 300-500 patients, not 2,500. A 1,200-1,500 SF suite with two exam rooms, a small lab area, and a reception/office is sufficient for most solo concierge practices.

Staffing costs in South Florida for medical support roles:

Entity Structure Decisions — Get This Right from Day One

This is where physicians most frequently make costly mistakes. The entity structure you choose at launch affects your tax liability for every year you operate.

The Common Options

The S-Corp Decision

For most concierge physicians, the optimal structure is a Florida PLLC with S-Corp tax election. Here is why:

At $500,000 in net practice income, the difference between operating as a simple LLC versus an S-Corp with properly set reasonable compensation is approximately $15,000 to $25,000 per year in self-employment tax savings.

Over a 20-year career, that single structural decision is worth $300,000 to $500,000.

The S-Corp election costs a few hundred dollars to file. Not filing it — or filing it too late — is one of the most expensive mistakes a physician can make.

Warning: The S-Corp election must be filed within 75 days of entity formation (or by March 15 for the current tax year). Missing this deadline means waiting until the following year. Many physicians launch their practice in the wrong structure and do not correct it for years.

Technology Stack Costs

Concierge practices need far less technology infrastructure than insurance-based practices, but choosing the right tools matters.

Note: Many concierge-focused EHR systems bundle patient portal, messaging, and telehealth into a single platform. The total technology cost for a concierge practice is typically $800-$1,200/month — a fraction of the billing infrastructure required for insurance-based practices.

Staffing Models

Your staffing model is the single largest variable cost. Here are the most common configurations:

Model A: Solo Physician + One MA ($38K-$52K/year staff cost)

• Physician handles some admin tasks
• MA rooms patients, handles labs, assists with procedures
• Best for practices under 250 patients
• Lowest overhead, highest physician workload

Model B: Physician + MA + Part-Time Admin ($60K-$85K/year staff cost)

• Admin handles scheduling, phones, billing, supplies
• MA focuses on clinical support
• Best for 250-400 patients
• Most common model for new concierge practices

Model C: Physician + MA + Full-Time Admin ($75K-$100K/year staff cost)

• Dedicated roles for clinical and administrative functions
• Admin can also manage marketing and patient communications
• Best for 350-500+ patients
• Allows physician to focus entirely on clinical work

Pre-Launch Financial Checklist

Six Months Before Launch

• Determine entity structure (PLLC with S-Corp election for most physicians)
• Engage an accountant who understands physician practice economics
• Open business bank accounts
• Secure malpractice insurance quotes
• Begin commercial lease negotiations
• Develop financial projections (12-month cash flow forecast)
• Establish personal savings reserve (6 months of personal expenses)

Three Months Before Launch

• File entity formation documents with Florida Division of Corporations
• File S-Corp election (Form 2553) — do not miss the deadline
• Set up accounting system (QuickBooks Online recommended)
• Set up payroll (even if you are the only employee initially)
• Order medical equipment and supplies
• Launch website and begin pre-marketing to potential patients
• Sign office lease

One Month Before Launch

• Finalize EHR setup and test workflows
• Set up membership billing system
• Establish patient agreements and consent forms
• Complete staff hiring and training
• Set up business insurance (general liability, property, cyber)
• Calculate and schedule quarterly estimated tax payments
• Confirm all licenses and credentials are current

Common Financial Mistakes at Launch

Mistake 1: Wrong Entity Structure

Operating as a sole proprietor or basic LLC when an S-Corp election would save $15,000-$25,000 per year in taxes. This compounds every single year.

Mistake 2: No Accounting System from Day One

Many physicians use personal bank accounts, track expenses in spreadsheets, and scramble at tax time. This creates problems that grow exponentially. Set up QuickBooks Online and a proper chart of accounts before your first patient walks in.

Mistake 3: Undercapitalization

Starting with too little cash reserve forces bad decisions — cutting marketing before the panel is full, delaying equipment purchases, or taking on high-interest debt. Budget for 6 months of operating expenses plus startup costs.

Mistake 4: Ignoring Retirement Plan Setup

The best time to establish a retirement plan is during your first year of practice. Waiting until year three or four means years of lost tax-sheltered compounding. A Solo 401(k) with employer contributions can shelter $69,000+ in year one. For advanced strategies, see our guide on how concierge physicians build wealth.

Mistake 5: Treating Accounting as Year-End Compliance

This is the most expensive mistake, and it is invisible. If your accountant only contacts you at tax time, you are missing 12 months of tax planning opportunities, operational insights, and financial visibility.

Why Your Accounting Setup Matters More Than Your Equipment Budget

A physician can practice medicine with basic equipment and upgrade later. But a wrong entity structure, missed S-Corp election, or absent tax strategy cannot be fixed retroactively. These are decisions that compound — for better or worse — every year.

Most accounting firms that serve physicians fall into two categories:

What concierge physicians actually need is a financial operating system — continuous accounting, real-time reporting, and proactive tax strategy that runs throughout the year, not a compliance exercise that happens once.

At Benefique Tax & Accounting in Davie, FL, we function as your outsourced finance department. We handle the accounting, financial reporting, tax planning, and operational analytics so you can focus on building your practice and treating patients.

For physicians launching a concierge practice, that means:

• Entity structure and S-Corp election done correctly from day one — not corrected years later
• Real-time financial reporting — you always know your revenue per patient, overhead ratio, and cash position
• Proactive tax strategy implemented during the year — retirement plans, compensation optimization, and deduction planning executed in real time, not discovered in April
• Operational insights from your financial data — staff efficiency, membership growth trajectory, and break-even analysis that inform real decisions
• Your entire accounting burden removed — your finance department exists, you just do not have to run it

We work with physician practices across Broward County. Concierge physicians are a tight-knit community, and many of our clients come through referrals from other physicians who experienced the difference between backward-looking tax prep and a forward-looking financial operating system.

If you are planning your launch, schedule a consultation and we will build a financial model for your specific situation — before you make the structural decisions that will affect your practice for years.

Frequently Asked Questions

How much does it cost to start a concierge medical practice?

Most solo concierge practices in Broward County launch for $100,000-$175,000 in total startup capital, including entity formation, office buildout, equipment, EHR, marketing, and 3-6 months of operating reserves. Physicians converting an existing practice spend significantly less than those building from scratch. See our income guide for revenue projections once your practice is operational.

What entity structure should a concierge physician use?

Most concierge physicians should form a Florida PLLC with S-Corp tax election. At $500,000+ in net income, the S-Corp election saves $15,000-$25,000 per year in self-employment taxes. The election must be filed on IRS Form 2553 within 75 days of entity formation or by March 15 for the current tax year.

How long does it take for a concierge practice to break even?

Converting an existing practice takes 6-12 months to break even and 12-24 months to reach target income. Starting a new concierge practice with no patient base takes 12-18 months to break even. Joining an established network like MDVIP can reach breakeven in 3-6 months. Read our financial comparison for detailed transition planning.

What is the monthly overhead for a concierge practice?

Monthly overhead typically ranges from $11,800-$24,200, including office lease ($2,000-$5,000), staff ($6,000-$8,300), technology ($300-$800), malpractice ($500-$1,000), and other expenses. This translates to annual overhead of $141,600-$290,400, or roughly 35-55% of revenue.

Related Articles

• How Much Does a Concierge Medical Practice Make in South Florida?
• Concierge Medicine vs Insurance-Based Practice: A Financial Comparison
• Tax Strategies for Concierge Physicians
• How Concierge Physicians Can Build Wealth Beyond Their Practice
• S-Corp Election: Is It Right for Your Florida Business?