Breaking away from a hospital system gives your healthcare practice new freedom—but it also brings big decisions, especially about where to set up your new home. Choosing the right location, whether you plan a private practice or a concierge practice, is one of the most critical factors in ensuring a successful transition and long-term viability. Here’s what to consider when evaluating new practice locations.

Existing Patient Accessibility

Your existing patient base is your most valuable asset. Make it as easy as possible for them to follow you. You want to be as close to your current location as your non-compete will allow. Easy parking or access to public transportation is a must. Make sure your building is ADA compliant, especially ramps and bathrooms, and easily accessible for patients with disabilities. Consider either ground floor easy elevator access, especially if you serve seniors or mobility impaired patients (like orthopedics or chiropractics).

Attracting New Patients

Focus on the types of patients you would like to see more of in your practice. Develop your unique value proposition, then use retail principles of site selection to identify locations with your preferred patient demographics. Choose locations with easy ingress and egress. Depending on your type of practice, consider visibility—street-level practices with signage can boost walk-in traffic and awareness, and ingress/egress, Choose locations with other tenants that serve a similar patient base. Are your patients all local, or do you draw from a further distance? If your unique value proposition is to cater to a high income community, a location in town might be right for you. If you draw from a larger trade area, a location near a major highway intersection may be important.

Engage a commercial real estate broker/ consultant with healthcare experience to help you define your requirements and navigate the site selection and negotiation process.

2. Zoning and Compliance

Healthcare practices must meet local zoning laws, health codes, and licensure requirements: It is very important to verify the location can accommodate both zoning approval and parking requirements. Be aware if a special use permit would be required for your target location. Obtaining a special use permit may add months to your schedule. Working with an architect, contractor, or design/buiild firm with healthcare experience on your team will help you navigate working with the municipalities.

Be mindful the space meets OSHA and HIPAA compliance. Determine if you will need a Certificate of Occupancy to open. And reach out to your malpractice carrier to evaluate any location-based risk implications.

Facility Layout and Infrastructure

Your new space should support efficient clinical workflows. As you establish your initial program of requirements, be sure to address the adequate number and size of exam rooms. Your practice maximizes cash flow when these rooms are full. Set aside time to outline your IT and electrical infrastructure needs, including EHR systems, how telehealth services would be delivered, and outlining the medical devices you will be using. Assure the new space has enough HVAC tonnage servicing the space, and the plumbing and water lines will accommodate the sinks, labs and rest rooms to be located in the space. Plan for proper adjacencies. Are staff members who regularly interact with each other near each other? Can nurses easily monitor patients? Plan for expansion as your practice grows. Plan for a positive patient experience, from entering the waiting room to exiting at the end of the appointment. Building out medical space can be expensive. Plan for a long enough lease and option periods to assure a return on your construction investment. Landlords may not cover the entire cost of the buildout.

Cost and Financial Sustainability

Financial independence means you will become an entrepreneur. As an entrepreneur, you will take on responsibilities for Lease or mortgage payments, renovation and buildout expenses, paying utilities, taxes, and maintenance for your space, and Common area maintenance (CAM) fees in shared facilities. Your healthcare real estate consultant can help you in quantifying these costs with projections

Get a clear understanding of your total occupancy cost and compare it to your projected revenue and patient volume. Consider negotiating tenant improvement (TI) allowances if you are leasing to reduce capital expenditures, and consulting with the bank can lend enough for building acquisition and construction.

Referral and Professional Network Proximity

Even in independence, staying near your professional ecosystem is key. Consider accessibility to hospitals or imaging centers for referrals and procedures, labs, pharmacies, and physical therapy services, and other physician offices for cross-referrals Depending on your specialty, being located in or near a medical office building (MOB) can help you stay connected and attract new patients organically.

Brand Identity and Growth Potential

Your new space should reflect your practice’s values and ambitions, and unique value proposition. Does the new space support a modern, patient-friendly atmosphere? Is there room for new services, potential income streams or additional providers in the future? Does the new space enhance your brand visibility and help you stand out? Does your brand and image connect with the patients that will grow your practice with the kinds of patients that you want to see? A thoughtfully chosen location and buildout can help build trust, reinforce your brand, and signal a fresh start to patients and staff.

Final Thought: Think Beyond Square Footage

Leaving a hospital system is about reclaiming your independence. Don’t just settle for a convenient address—choose a location that sets your practice apart and sets up for clinical excellence, financial strength, a stronger patient connection and growth!.