Start Your Own Medical Practice: 13 Steps to Success (2023)

Starting a medical practice is hard but rewarding work. There is a lot of red tape to cut through when opening a private practice, but the result is increased freedom as you will be your own boss. You’ll get to determine your hours, services, and perhaps even the type of patients you treat. This is both exciting and daunting, especially if you’re a fresh-from-medical-school healthcare professional.

What you need is a plan, and we’re here to help you create one. This guide will go step by step through what you need to know to start your medical practice. If you’ve done your entrepreneurial soul searching and know that starting a medical practice is right for you, read on.

Before we dive into the steps, let’s unpack one very important question medical entrepreneurs encounter when first considering their new practice.

What license do I need to open my own medical practice?

Not only do you need a valid medical license, but you will also likely need multiple other credentials and licenses to practice. These can include:

Check with your local government for details about any further state-sanctioned licenses or credentials you need to practice. In addition, you will need to go through a credentialing process with various payers (health insurance companies and federal organizations such as the Center for Medicare and Medicaid Services).

A successful credentialing process allows you to accept medical insurance from your patients and receive reimbursement from insurers. Any other healthcare providers you bring on as staff will also need to go through a credentialing process with each payer you work with.

Remember that the credentialing process can take a significant amount of time (as many as 150 days), so start early to avoid delays in opening your practice. Now that we’ve worked through that question, let’s go through the 13 steps you need to know to open your own medical practice.

1) Your medical practice business plan

A well-written business plan can help you secure funding for your new medical practice. It can also help you stay focused on your goals and objectives as you grow. A strong business plan has a few essential sections.

  • Executive Summary: What are your goals for the medical practice? What sort of patient care will you offer? Are you a primary care physician? A specialist? Provide a high-level overview of each of the following sections in your executive summary.
  • Industry Analysis: Describe any current trends, gaps, market size, and level of opportunity you discover from your market research.
  • Competitive Analysis: Outline your competitors’ strengths and weaknesses. How will you be different?
  • Marketing Plan: Discuss your ideal client, your marketing strategy, and your branding.
  • Management: Who are you as a leader? What do you bring to the business, and how do you intend to lead your team?
  • Operations: Talk about your plan for day-to-day business affairs. You can also discuss staffing intentions here as well.
  • Financial Plan: What are your startup costs? What about your recurring costs? Detail your revenue and cash flow projections for the business for its first five years.

You can also reduce your full-fledged business plan to a pro forma, a document specifically designed to procure financing. Your pro forma should include hard data about your revenue and debt projections. Potential investors and banks will want to see your pro forma to decide whether or not to back you.

(Video) 18 Steps To Opening Your Own Clinic - Starting A Medical Practice STEP BY STEP

2) Your business structure

Choose one of the four main types of business ownership for your medical practice.

  • Sole proprietorship
  • Limited liability company (LLC)
  • Partnership
  • Corporation

Each of these 4 options contains additional structures you can choose to establish yourself as a business entity, based on your needs and goals. Refer to your business plan to help you decide which is right for you.

3) Your business name

You may choose to operate your business under your own name. However, some medical practices choose an alternative name. If you go this route, consider that your business name should be:

  • Easy
  • Memorable
  • Simple
  • Pronounceable
  • Descriptive of your business’s services
  • In line with your brand

You'll also want to ensure the matching domain and social handles are available. If you need help brainstorming name ideas, use a business name generator.

4) Your type of practice

There are a few types of medical practice models you can choose from. Let’s break down the main options.

The solo practice model

A solo medical practice means that you are responsible for the medical and administrative sides of the business. You are the only one on the line if your business runs into trouble, but you are in full control of all aspects of your business.

The group practice model

The group practice model requires a team of medical practitioners who work together to handle patients. This route may make securing funding easier, but you lose some of the control that comes from working solo.

The hospital-owned model

This is a tempting model for medical practitioners, as they benefit from the hospital’s working capital and other resources while reducing risk. The downside here is that you will lose a lot of your autonomy and control.

The federally qualified health center model

This is similar to the hospital-owned model, but regulations are set federally rather than corporately. As funds are federally regulated, you may run into a cap on your allotted working capital in this model.

(Video) WCI Podcast #227 - Starting a Medical Practice

There is no one right model to choose, but if autonomy is important to you, a solo or group practice may be your best bet. You may also have a faster time securing proper insurance if you head into solo or group practice.

5) Finances

Opening a successful medical practice can cost upwards of $250,000. If that sounds like a steep number, fear not. There are several ways to secure financing, including:

  • Bank business loans
  • Private lenders or investors
  • Friends and family
  • Personal savings

You may need specific forms of insurance coverage to qualify for certain financing options. Share your business plan or pro forma along with proof of proper insurance when you meet with banks or investors to give yourself the best chance of full funding.

6) Patients

The type of practice you intend to open may determine your patient type. For example, if you want to open an orthopedic office, you don't need to market to heart patients. However, you can still target a demographic based on their health insurance coverage, location, or other factors within your specific niche. Use your market research here to help you decide if targeting a select demographic is right for you.

7) Location

Where will you operate your doctor’s office? Will you take over an existing doctor's office space, or will you need to secure a new location? Remember that the more renovations and remodeling you need, the higher your startup costs will be.

You should also keep in mind proximity to your target market when selecting a location. Work with a real estate agent to help you find the right location for your business goals.

8) Equipment

You'll want to ensure you've got the right equipment to support your staff and serve your clients. Some main medical practice equipment you'll need includes:

  • Computers
  • Practice management software
  • Billing service software
  • Medical transcription software
  • POS system and credit card charger (such as Square)
  • Electronic health record (EHR) or Electronic medical record (EMR) software
  • Any necessary medical equipment based on the services you offer

You may also need to register some of your equipment with your state. Check your local government’s website to ensure you’re following all necessary registration protocols.

9) Staffing

Unless you plan to operate entirely alone, you will need to hire both high-level, licensed medical practitioners and a trained team that includes everyone from receptionists to human resources and billing professionals.

(Video) How to start your own medical business

Take time to find the best people available for your practice. Create a strong infrastructure and workflow to support their success as part of your business.

Once you know who you want to hire, you can download and print W-4 forms, W-9 forms, and other necessary hiring forms online.

10) Insurance

As a new medical business owner, you will need several small business insurance policies to ensure that you are covered and free to run your practice. You will also need some policies specific to doctor’s offices. The following are standard types of insurance coverage you’ll need to open your practice.

  • Workers' Compensation: Workers’ comp protects you if one of your staff members becomes sick or injured while at work. It used to be a much longer process to get workers’ comp, but now you can purchase this insurance online. Receive a quick estimate of your workers’ comp premium with our 60-second workers' compensation calculator.
  • General Liability Insurance: Protects you from business-wrecking financial burdens due to claims made against you for injury or property damage
  • Medical Malpractice Insurance: A specific form of liability insurance that helps to protect you in the case of a claim filed against you for wrongful services resulting in injury or death
  • Bodily Injury Liability Coverage: This will help protect you if a visitor to your office gets injured
  • Business Property Insurance: Covers your medical practice's equipment
  • Business Interruption: Business interruption insurance will help supplement lost income if you must shut your office and stop operating your practice for any reason
  • Business Owner's Policy: A Business Owner’s Policy bundles multiple policies together. Your Business Owner’s Policy may include such policies as general liability, business property insurance, and business interruption coverage.

(Psst...Want to know how much you'll likely spend on small business insurance right now? Get a fast and free quote for your medical practice from Huckleberry.)

11) Paperwork, accounts, and legal matters

The volume of paperwork and procedures you need to work through before you’re ready to open can be maddening. To help you stay organized and focused, let's look at a few of the most common tasks you'll need to complete to open your practice.

  • Register your business name: Check with the Small Business Association for how to register your business name
  • Find a great medical lawyer: Seek out legal counsel before you open your practice to ensure that you are following all proper protocols in this highly regulated industry
  • Get your EIN: Think of your Employer Identification Number (EIN) as a Social Security Number (SSN) for your business. You'll receive multiple benefits from your EIN, so secure one right away.
  • Ensure HIPAA compliance: Build all necessary HIPAA compliance procedures and paperwork into your business opening strategy as well as your regular business operations
  • Get your business license: Find your state’s specific regulations to secure your business license
  • Open a business credit card and business bank account: Separate business assets from personal finances by opening your own business bank account and credit card

12) Marketing strategy

You'll need a solid marketing strategy no matter which type of medical practice you intend to open. Patients have many options for care today. They need to know which medical professionals will both work with their insurance company and provide the real help they need.

Let’s go over some common marketing channels you can use to connect with potential new patients and build your business.

Your website

Your medical practice's website is a crucial asset. It needs to be well-designed with easy navigation, strong search engine optimization (SEO), accessibility, and high speed. Hire a web developer and an SEO specialist to help you with this. You can also set up your medical practice’s website to include a blog and even an appointment scheduler.

Email marketing

Solid email marketing is one of the most powerful ways to establish authority, build brand recognition, and develop relationships with potential clients.

(Video) PLAN, MARKET & SELL YOUR SERVICES - 8, 9 & 10 of 10 | STARTING YOUR OWN MEDICAL BILLING BUSINESS.

Place a signup bar or popup on your website where clients can enter their email. Once you’ve captured their email address, you can send them a newsletter or other targeted email content meant to build trust between you and your clients.

Social Media Marketing

Facebook, LinkedIn, YouTube, and Twitter are all great social media platforms you can use to spread the word about your business. Even Instagram and TikTok can be fruitful places to market, depending on the type of practice you are and who you’re trying to reach.

However, it takes time to build a following and to discover what content performs well for you. Start with one platform first, learn it well, and then add others. That way, you’ll avoid overwhelming yourself while you become a pro at whichever social media channel you choose.

Google My Business

Google My Business makes you more discoverable and authoritative on Google local search. Register your business name, create a free account, and you’re good to go.

Word-of-mouth and referrals

People want to know about great care. Encourage your patients to spread the word about your practice with a referral program. The incentive can be as simple as a gift card to the referrer once the referred party completes their first office visit. This program will help you keep a steady stream of new clients coming in—vital for medical offices that thrive on new patients.

13) Additional resources

As you probably figured out at some point during your 11 years in medical school, the learning never really ends in medicine. Here are a few online resources full of education and advice to help you succeed as a medical business owner.

Bookmark these pages and return to them whenever you need a little more knowledge or inspiration to better your practice in service of happier, healthier patients.

And there you have it! Keep this guide handy as you progress toward your first day in your new medical office. Good luck, and congrats on starting a new, exciting business.

Get your workers' comp and other medical practice insurance policies from Huckleberry

At Huckleberry, our mission is to help you get quality medical practice business insurance faster than it takes to check a patient’s vitals.

(Video) Opening a Successful Medspa or Cosmetic Practice - Part 1

Grab a quick workers’ comp quote or see how you can get insured online in minutes.

FAQs

How do you build a successful medical practice? ›

Best Practices of Successful Medical Practices
  1. Hire, train, manage, and support an outstanding staff. ...
  2. Eliminate waste. ...
  3. Create a customer-centric culture. ...
  4. Lower your HIPAA risks. ...
  5. Market the practice. ...
  6. Invest in modern technology. ...
  7. Get help if you need it.

How do I start a new medical practice? ›

7 steps for starting a medical practice
  1. Create a business plan. ...
  2. Secure financing. ...
  3. Sort out paperwork and credentials. ...
  4. Find a location. ...
  5. Buy equipment/ practice management software. ...
  6. Create website and begin marketing. ...
  7. Make administrative decisions.
6 Jul 2021

What are two 2 important aspects of growing a medical practice? ›

To grow your medical practice, you need to invest in a variety of different areas, including patient care, community involvement, marketing, and hiring.

How can I make my medical practice more profitable? ›

9 Tips on How to Increase Revenue in a Medical Practice
  1. Build an Online Presence. ...
  2. Improve Your Patient Collection Strategy. ...
  3. Offer After-hours Virtual Visits. ...
  4. Motivate Your Staff. ...
  5. Use Your Extenders. ...
  6. Build a Better Appointment Schedule. ...
  7. Renegotiate Your Payer Contracts. ...
  8. Reduce Missed Appointments.

What are the 4 pillars of practice? ›

The four pillars of advanced practice are clinical practice, leadership and management, education, and research.

What are the 4 domains of good medical practice? ›

  • About this guidance. ...
  • Professionalism in action. ...
  • Domain 1: Knowledge, skills and performance. ...
  • Domain 2: Safety and quality. ...
  • Domain 3: Communication, partnership and teamwork. ...
  • Show respect for patients. ...
  • Domain 4: Maintaining trust. ...
  • Endnotes.
25 Mar 2013

What are the six types of medical practices? ›

Here are some of the most commonly available types of medical practice settings.
  • Solo Practice. ...
  • Group Practices. ...
  • Employed Physician Practices. ...
  • Direct Primary Care. ...
  • Independent Contractor. ...
  • Locum Tenens.

How long does it take for a private practice to be profitable? ›

On average, it takes most practices about two years to get fully established and stable. Getting those first few clients takes a lot of work. But usually, once a practice gets around 10-15 regular clients, things tend to blossom.

What are the 6 aims of healthcare Improvement? ›

The document recommends “six aims for improvement.” The aims are safety, effectiveness, equity, timeliness, patient-centeredness, and ef- ficiency. These aims are intended to iden- tify the fundamental domains that need to be addressed to improve the health care services delivered to individuals and populations.

What are the top 3 most important advances in medical technology? ›

Here, in order of anticipated importance, are the Top 10 Medical Innovations for 2022:
  • Next Generation of mRNA Vaccinology. ...
  • PSMA-Targeted Therapy in Prostate Cancer. ...
  • New Treatment for the Reduction of LDL. ...
  • Novel Drug for Treatment of Type 2 Diabetes. ...
  • Breakthrough Treatment for Postpartum Depression.
16 Feb 2022

What are best practices in health care? ›

Best practices are health practices, methods, interventions, procedures or techniques based on high-quality evidence in order to obtain improved patient and health outcomes.

What medical practice makes the most money? ›

According to the latest statistics, physicians working in the orthopedics specialty are the highest earning doctors in the US, with an average annual income of US$511K.

What is the most valuable asset of the medical practice? ›

The goodwill of a medical practice is the most important intangible asset that you should determine. Practice goodwill is based on variable factors such as the reputation of the practice, stable staffing, a solid patient list, prime location, and other factors that affect the earning power of a practice.

What is the most profitable medical field? ›

Anesthesiologists and surgeons earn the highest income among doctors. According to Payscale August 2022 data, anesthesiologists earn an average of $307,740, and surgeons earn an average of $287,500 as of July 2022 data.

What are the 6 C's of nursing? ›

The 6Cs of nursing are:
  • Care.
  • Compassion.
  • Competence.
  • Communication.
  • Courage.
  • Commitment.

What are the four 4 cornerstones of primary health care? ›

Four Cornerstones/Pillars in Primary Health Care
  • Active Community Participation.
  • Intra and Inter-sectoral Linkages.
  • Use of Appropriate Technology.
  • Support mechanism made available.

What are the principles of practice? ›

The practice principles
  • Principle 1: High expectations for every student promote intellectual engagement and self-awareness. ...
  • Principle 2: A supportive and productive learning environment promotes inclusion and collaboration. ...
  • Principle 3: Student voice, agency and leadership empower students and build school pride.
5 Sept 2022

What are the 5 pillars of medical ethics? ›

Five Major Moral Principles in Health Care:
  • I. NON MALFEASANCE.
  • II. BENEFICENCE.
  • III. UTILITY.
  • IV. DISTRIBUTIVE JUSTICE.
  • V. AUTONOMY.

What are the 5 domains of health care? ›

There are five main aspects of personal health: physical, emotional, social, spiritual, and intellectual.

What are the 5 domains of quality? ›

However, five domains are widely considered to be important to one's quality of life. These are; physical, psychological, social, economic, and spiritual domains (Cho, 2013) . Quality of life is said to be an important indicator of how the patients will respond to treatment and stay healthy. ...

What are the 7 flows of healthcare? ›

The Flows of Medicine
  • Flow of patients. For a patient to experience flow is the overarching top goal in the delivery of healthcare. ...
  • Flow of family and relationships. ...
  • Flow of providers. ...
  • Flow of medication. ...
  • Flow of supplies. ...
  • Flow of information. ...
  • Flow of equipment. ...
  • Flow of process engineering.
31 Jul 2017

What are the 8 types healthcare services? ›

Types of Services
  • Mental health care.
  • Dental care.
  • Laboratory and diagnostic care.
  • Substance abuse treatment.
  • Preventative care.
  • Physical and occupational therapy.
  • Nutritional support.
  • Pharmaceutical care.
21 Jan 2022

What are the 7 P's in healthcare? ›

7Ps can be classified into seven major strategies like as product/service, price, place, promotion, people, physical assets and process (3). This is a known marketing strategy that has provided a critical tool for hospitals and medical services centers to improve the management of healthcare marketing (4).

Whats the difference between a practice and a clinic? ›

For instance, a local general practice run by a single general practitioner provides primary health care and is usually run as a for-profit business by the owner, whereas a government-run specialist clinic may provide subsidised or specialised health care.

What are the 8 national practice problems in healthcare? ›

Here are some of the quality issues.
  • Preventable Medical Errors.
  • Poor Amenable Mortality Rates.
  • Lack of Transparency.
  • Difficulty Finding a Good Doctor.
  • High Costs of Care.
  • A Lack of Insurance Coverage.
  • The Nursing and Physician Shortage.
  • A different perspective on solving the shortage crisis.

What percent of private practices fail? ›

According to Dave Chase, author of CEO's Guide to Restoring the American Dream, 43 percent of healthcare-related businesses fail within their first five years.

What is a typical split at private practice? ›

Usually, this a 60/40 or 50/50 split; the agency keeps 60-50% of the fee, and the contracting therapist gets 40-50%.

How can I promote my private practice? ›

7 Tips for Marketing your Private Practice on a Shoestring Budget
  1. #2 Blog, Blog, Then Blog Some More.
  2. #3 Guest Post on Other Blogs.
  3. #4 Go to Local Networking Events.
  4. #5 Join or Create Facebook Groups.
  5. #6 Create a Google My Business Account.
  6. #7 Claim Your Practice on Yelp.

What are the 3 strategies used to promote health? ›

The basic strategies for health promotion identified in the Ottawa Charter were: advocate (to boost the factors which encourage health), enable (allowing all people to achieve health equity) and mediate (through collaboration across all sectors).

What are the 3 components of quality care? ›

Effective – providing evidence-based healthcare services to those who need them; Safe – avoiding harm to people for whom the care is intended; and. People-centred – providing care that responds to individual preferences, needs and values.

What are the 3 goals of a healthcare system? ›

Improving the patient experience of care (including quality and satisfaction); Improving the health of populations; and. Reducing the per capita cost of health care.

What will medicine be like in 2030? ›

By 2030, healthcare will be centered on patients empowered to prevent diseases rather than seek treatment. They will receive personalized health solutions in ways that are integrated seamlessly into their daily lives.

What are the 10 greatest medical discoveries? ›

In chronological order they are: Andreas Vesalias's anatomy of the human body (1543) with its presentation of the scientific method; William Harvey's description of the functions of the heart and the circulation of the blood (1628); Anton Leeuwenhoek's use of the microscope to identify bacteria (1675); Edward Jenner's ...

What will be the future of medicine? ›

Here are some of the categories for which changes are anticipated: personalized medicine; nanoscale medicine; big data, biometrics and the internet of things (IoT); machine learning, AI and advanced analytics; stem-cell medicine; digital health; genetic engineering and bioprinting; gene therapy and editing; “internals, ...

What are examples of best practices? ›

An everyday example of this type of best practice is to look both ways before crossing the street. It isn't a law to look, and people may find some success if they don't do it. But this often-repeated piece of advice produces the best results in the long run if followed.

What are modern healthcare practices? ›

One of the defining characteristics of modern healthcare is the abundant use of medical technology to provide clinical care and diagnosis to patients. In today's hospital, the patient is at the center of an intricate network of clinicians and medical devices that make up healthcare delivery.

What are medical practices? ›

Medical Practice means a bona fide, integrated business entity in which Physicians practice medicine together as partners, shareholders, owners, members, or employees, or in which only one Physician practices medicine.

What is the lowest paid medical doctor? ›

It should be noted that pediatricians have the lowest annual salary out of any specialty on our list; however, they also work fewer hours than most specialties. The biggest draw for pediatrics is that you get to work with children and adolescents.

Which medical field is most in demand? ›

4 Key Healthcare Jobs in High Demand Moving Into 2022
  • Nurse Practitioners (NP) Job outlook: 52% increase from 2020-2030 (BLS) ...
  • Physical Therapist Assistant (PTA) Job outlook: 35% increase from 2020-2030 (BLS) ...
  • Medical and Health Service Managers. Job outlook: 32% increase from 2020-2030 (BLS) ...
  • Medical Assistants.

What is the easiest doctor to become with high salary? ›

The 10 Least Competitive Specialties in Medicine
  • Psychiatry.
  • Emergency Medicine.
  • Physical Medicine & Rehabilitation.
  • Neurology.
  • Child Neurology.
  • Pathology.
  • Internal Medicine.
  • Anesthesiology.
10 Sept 2022

What is the average doctor's net worth? ›

More than half (57%) of respondents said they are worth more than $1 million, consistent with physicians surveyed in 2021. A quarter (27%) of this year's doctors say they're worth over $2 million and 11% have a net worth of $5 million or more.

How much is a doctor's average net worth? ›

About 46% of doctors have net worth of $1 million to $5 million, similar to the 44% in 2019. The net worth of many physicians exceeds the average US family net worth of about $749,000, and their wealth is growing at a faster rate, according to the last Federal Reserve data.

Are medical practices profitable? ›

There are many steps that go into starting a practice, as well as many costs. It's not a journey without obstacles, and about 50% of practices will close their doors within five years. But the good news is that yes, owning a medical practice can be very profitable and very rewarding!

Which medical field is best for future? ›

Best Medical Careers For The Future
  • Health Informatics and Health Information Management. ...
  • Computer and Information Technologist. ...
  • Healthcare Careers of the Future. ...
  • Genetic Counseling and Nursing. ...
  • Patient Navigators. ...
  • Robotic Assistance Nurse. ...
  • Medical Scientist. ...
  • 3D Printing.
11 Jun 2018

Which medical specialty has the best future? ›

The top medical specialties that have the largest potential in...
  • General practice. Making a long-term impact on a patient's life is exactly why many doctors choose this specialty. ...
  • Radiology. ...
  • Ophthalmology. ...
  • Sports medicine and rehabilitation. ...
  • Oncology. ...
  • Dermatology. ...
  • Emergency Medicine. ...
  • Gastroenterology.
7 Jul 2021

What makes a successful practice? ›

Successful practices continually educate all employees about their services, the industry, and the standard of care in their community. All employees know services provided and why their services and their physicians are as good as or better than other providers.

How do you run a successful practice? ›

5 Tips and Tricks for a Successful Practice
  1. Set yourself up for success. ...
  2. Get ready to improvise. ...
  3. Read the lesson before practice. ...
  4. Know it can take time to get into a groove. ...
  5. Have Fun!
13 Sept 2018

What are good practice habits? ›

5 Ways to Create Healthy and Effective Practice Habits
  • Schedule your practice time. Structure and discipline are crucial in having quality practice time! ...
  • Break your bigger goals into smaller ones. ...
  • Visualization. ...
  • Compose regularly. ...
  • Keep a clear head.
5 Jul 2018

What are 2 characteristics of effective practice? ›

However, the integration and synthesis of evidence also reveals core features of inspiring practice and highlighted the strong emotional and reflective components that distinguish inspiring practice, including: positive relationships; good classroom/behaviour management; positive and supportive climate; formative ...

How do you make a good private practice? ›

Tips on how to start and grow your private practice
  1. Define an Ideal Customer. You would never create a product without having a customer in mind. ...
  2. Create a Digital Presence. In today's age, almost everything is done over the internet. ...
  3. Build Your Referral Network. ...
  4. Get an EHR/ Practice Management Tool. ...
  5. Find Your Balance.
2 Oct 2017

What should a good practice plan include? ›

Here are the key areas to focus on for each practice throughout the season.
  • Warm-ups and stretching. Even young muscles need to be stretched before every workout. ...
  • Ballhandling . ...
  • Shooting. ...
  • Individual defensive skill fundamentals and defensive sets. ...
  • Individual offensive skill fundamentals and the pass-cut-replace offense.

What are the 5 A's of healthcare? ›

They grouped these characteristics into five As of access to care: affordability, availability, accessibility, accommodation, and acceptability.

What are the 6 P's in healthcare? ›

Instead, Herrmann and her team created an improved nurse rounding program known as the "6 Ps" of patient care, or Pain, Personal Needs, Pulmonary Hygiene, Positions, Possessions and Place.

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