If someone asks you, “What’s the best thing about being a doctor?” what would you say?
Maybe, you’ll say it’s a stable job or perhaps, you’ll talk about how satisfying it is to help people. Whatever your reason for getting a career in healthcare, it’s awesome that you’re doing your part in saving lives.
But now comes an important point in your career. Do you start a medical practice or do you continue as an employee? If you’re determined to launch a private practice startup, this checklist can help.
1. Secure Funding for Your Medical Business
Starting a private practice means startup costs. For many doctors, dentists, therapists, and so on, that translates to either a small-business loan or other outside capital.
No matter how you plan to raise the funds needed to open your medical business though, you should know that it’s not a good idea to start from scratch. From building your office to buying equipment to consulting with an attorney, hiring employees, and more, there are a lot of items that can add up.
Consider working with a consultant who has experience launching private practices. He or she can assist you with financing matters.
2. Follow the Regulations Set by Your State and the Federal Government
After obtaining a state license, you have to apply for a national provider identifier (NPI) number. This is required for all covered healthcare providers.
You also need a DEA registration number for prescribing medicines. Other regulations to keep in mind will depend on your medical specialty and the procedures you provide.
Let’s say, you plan to offer dental X-ray services. You should get your X-ray machine certified to comply with your state’s rules.
3. Decide If You Should Incorporate Your Private Practice Startup
There are different reasons why private doctors, therapists, and other healthcare providers choose to incorporate their practice. First, is to protect their personal assets. If a patient decides to sue them, incorporating gives them some protection, which could extend to their employees.
Next would be the tax benefits. Though there are tax benefits with each type of business legal structure, incorporating means you can defer your taxes. You can also enjoy business expense deductions including your startup costs, capital expenses, etc.
Of course, tax law is complex and sometimes changes. As a business owner, it’s your responsibility to know the changes in the laws and regulations governing your practice. This is why it helps to hire professionals, for example, dental practice accounting services can help keep private dentists abreast of their tax obligations.
4. Understand Credentialing
To accept insurance from patients, you need to undergo “credentialing.” Here, you’re trying to prove your education, training, experience, and competence to insurers.
After the long process of verifying your credentials, an insurance company will check if you meet their internal qualifications. If you pass, you’ll be part of their network of healthcare providers, then you can start billing them for services rendered.
Ready to Launch Your Private Practice?
Did you find this private practice startup checklist helpful?
If you still need more tips and advice for launching your private practice, feel free to check out our other posts.