His overhead without the employees is going to be between 120,000 and 200,000.
Just transcription is going to be about 15,000. Rent is going tobe about 30,000-100,000. Office management software will be about 20,000. Basic X-ray will be about 30,000. Malpractice varies but for a basic FP about 10,000. Medical offices usually use special garbage collection for the red bags. Janitorial service. General liability/business insurance. Phones, lights, water. Upkeep of equipment. Maintaining basic medical and office supplies. Security system.
"Just a person in an office" does not mean no overhead.
When I was in private practice I cleared less than ten cents on the billed dollar. Things are worse now and I can see how this could be a survival strategy for a few motivated docs, but they will work their tails off for a very modest income.
I left private practice ten years ago. I was briefly tempted to return last year until I crunched the numbers.
he has a tiny space, say $1000 per month including phone and Internet access; plus $100/month for his cell phone.
General liability is about $350 per year; an unknown amount of malpractice is on top of that.
So his cost before malpractice insurance is say $15K . He doesn't run his own pharmacy, will be doing his own transcription, and presumably his own bills.
The article claims that all his startup costs including software to run his practice is $15K. It seems he will be collecting payment at time of service and will not be working for Medicare/Medicaid.