In the US, there were 139,848 medical residents in 2020. Many will go on to open a new medical practice. Doing so is exciting but requires a lot of training, funding, legal help, and knowledge of the latest regulations.
There are many things to consider when opening your practice and countless decisions to make. So we have provided some key items to look out for in this exciting endeavor. Read on for more information on how to open your new medical practice successfully.
Create Your Business Plan
Every successful business must begin with a business plan. It can be challenging to pre-plan the direction you have in mind for your practice. However, it can be valuable to establish your goals, missions, objectives, and values.
You’ll begin by creating your financial model and budget for your practice. In addition, you’ll need a timeline to work against as you build a customer base for your establishment. Think of the timeline as the guide you’ll follow until your practice opens.
Establish Your Business Entity
Your business plan is ready now to establish your business entity.
First, determine how you will finance your business in the medical industry. You won’t get anywhere in your journey if you have no capital. A common way to fund a medical practice is through small business loans.
It is best to talk with a financial advisor about funding. Once they have seen your goals and the business plan set out, they’ll better understand how to advise you.
Talking with professionals such as small business lawyers or consultants in your area can help you through the many considerations that come with building a business.
Decisions such as the name of the practice don’t have much effect on the business long-term. However, organizational structures such as LLC, C Corp, or S Corp can have long-lasting impacts that would benefit from a piece of professional advice.
Setting up an accountant for your practice in the healthcare industry is another significant stride in the right direction. Among other things, you’ll need to open up the proper bank accounts and procure the correct tax identification numbers for your practice.
Decide the Best Setup and Location
You will need to shop around based on your specific needs and the needs of your patients. For example, figuring out how many rooms you will need for your rotation is essential. You’ll also need to establish how much space you’ll need for the type of furniture you have or will need for your future practice.
Once you’ve found the ideal location for your new medical practice, you’ll need to ensure the space has the proper inspections. Then, negotiate the lease terms and conditions so you know you’ve struck a good deal. You don’t want to get into a lease you’ll soon regret.
During your healthcare career in your practice, you’ll want to receive compensation for your work, and so will your employees. Therefore, it’s crucial to establish what model your administration will utilize for compensation.
You’ll need to determine the schedule of fees for the services that you provide for your patients and beyond. Take care and time during this stage. This foundation is difficult to change once the processes have been put in place.
Technology and Equipment
For your new medical practice to run smoothly, you’ll want your primary systems to work at peak efficiency with the latest technology available.
Your records, billing, patient experiences, communications, and practice management all rely on you choosing systems that are medical-program specific.
Do a great deal of research on the different suppliers of these systems. Their strengths and shortcomings will become yours. Choose something like Allied Health practice management software to keep up with your practice’s growth.
Requirements for Insurance Claims
Medical specialists all around the world should understand the necessity of insurance coverage for a medical practice. Without fail, you need to have the right kind of insurance and the correct amount of coverage. There is a difference between insurances that are required and those that are optional.
Talk with a business advisor or trusted insurance agent about the following coverage:
- Health, Life, and Disability
- Employee Practices Liability
- Workers Compensation
- Disability Coverage
- Business Interruption
- Employee Fidelity Bond
- Umbrella Policy
It’s crucial to have the right amount of safeguards in place during times of need. Acquiring insurance with everything on the list will potentially save your practice one day.
Hospital Privileging and Medical Credentials
To submit claims to payers and collect on them, you will need to first apply for a National Provider Identifier Number and get a state medical license. Once your license is taken care of, you need to complete the credentialing process.
Getting your credentials is a measure for authenticating your qualifications. Completing this process will pave the way for you to accept government-based insurances such as Medicare and Medicaid. You’ll also be able to receive different private insurance providers such as Aetna and Blue Cross Blue Shield.
If you choose to accept insurance, you’ll need to determine which providers you’re willing to work with. Furthermore, you’ll need to negotiate contracts with each company.
Establishing Your New Medical Practice
It’s a lot of work to take a dream and place it into reality. With diligence, determination, established goals, and plans, you can build your new medical practice!
Don’t forget to market yourself and your new practice. Whether you are starting with nothing or have an existing customer base, you should establish a sound marketing foundation.
To continue getting pointers on advancing your healthcare career by creating a new medical practice, come back and visit our blog! We update it regularly with you in mind!