Since the year 2020, physician-owned practices dropped below 50% with employed physicians accounting for 50.2% of doctors. But, it’s still the dream of many doctors to own their own practice.
Are you a physician dreaming of owning your own private medical practice? The healthcare industry is tough but it’s not as hard as you may think to open your own new medical practice.
Keep reading for more information on starting a private medical practice.
Funding Your Practice
As with any type of business, you’ll shoulder a lot of start-up costs. A small business loan is a great way of funding your new business. Look into different funding options such as the U.S. Small Business Administration.
Consider all your costs when settling on a loan amount. You’ll need a building, medical equipment, an attorney, and an accountant.
If you want to stress less over billing and payment, consider using a revenue cycle management company such as Med USA RCM. An RCM handles coding, billing, pre-registration, payment, claim submission, and more.
Choose the Legal Structure
This is where a lawyer helps. Physicians need protection in case of personal liability lawsuits, losses, and debit. Many doctors choose the S corporation legal structure in which they pay taxes only on their personal income from their business.
Look for an attorney with experience in the medical industry who can advise you and help draft all the legal documents. These documents include articles of incorporation and organization or a partnership agreement if you’re working with another doctor.
You’ll need to go through the credentialing process to accept both government and private health insurance from your patients. This process takes several months. It’s important to have your medical license as well as education and residency information available for this process.
You’ll need to decide which insurance carriers to work with, including Medicare and Medicaid. You can negotiate contracts with most insurance companies. Every medical practitioner in a private medical clinic gets the same Medicaid and Medicare reimbursements per type of procedure.
Never open a business without first having business insurance. If there’s an accident or issue, not having insurance can destroy your business.
You’ll also need Workers Compensation insurance for your employees. If you lease a car or other vehicle for the practice, you’ll also need business vehicle insurance.
It’s impossible to run a private medical practice on your own. Once you determine salary rates and benefits packages, get to work hiring an office manager and other necessary employees.
Always make sure you spell out salary, benefits, and expectations in a contract that you and your employees sign. Decide whether you’ll offer health insurance, 401K plans, or other retirement options.
Opening Your Own Private Medical Practice
It’s not easy opening your own private medical practice but it’s satisfying to work for yourself. You’ll have the autonomy to practice medicine the way you want and you’ll enjoy a greater earning potential.
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