You’ve done the hard work, earned your medical degree, endured your residency, and are ready to branch out independently. You don’t have to sit under the thumb of other physicians anymore. But before you begin a new medical practice, you still have to jump through a few more hoops. Here are the basic steps if you hope to have a successful medical practice.
Funding a New Medical Practice
All new businesses have start-up costs. You will either need outside capital or a small-business loan to turn your dream into reality.
If you already have medical school debt, you need to look into manageable ways to manage your debt. Consider refinancing these loans so you can afford to open your practice.
You will need finances for the building and furniture as well as supplies like what you can find at ukmedi.co.uk/.
Look into small business loans from local institutions. Since you’ll be running a fairly lucrative business, you should have little problem finding a lender.
If you’re still strapped for cash, consider creative options such as sharing office space. Rent out a part of your building or look into subleasing to a like-minded business on the weekends, such as a massage therapist.
Determine Legal Structure
While you could just put a sign outside your door that says, “the doctor is in,” you need to establish your business’s legal structure to protect yourself.
Your legal structure will determine how you pay taxes and how liable you’ll be for debt, losses, and lawsuits. Most medical practitioners form S corporations, where you only pay taxes on personal income from the business.
Look for a healthcare attorney to give you the best advice on structuring your business. You will need an expert to draft articles of organization, articles of incorporation, or a partnership agreement, depending on the structure you choose for your business.
You will also need an EIN or employer identification number. You can register for this through the IRS website. You will also have to register for local and state taxes.
You also must go through the credentialing process to accept health insurance from patients. This process can take several months, so begin the process early.
Begin by checking with your state department of insurance. They will tell you how to move through the credentialing process in their healthcare industry.
At the very least, you will have to explain your medical education and residency. You’ll also need to prove you have malpractice insurance and a license to practice medicine.
The branch of medicine as well as the area where you set up your private medical practice, will determine the public health insurance programs you should sign up for. If you work with older patients, sign up for Medicare. If you work with low-income patients, participate in Medicaid.
You will also need to negotiate a contract with each common private insurance provider in your state.
Prepare and Practice
When you open a new medical practice, you need to establish proper funding, seek proper credentialing, and determine your legal structure. Once you’ve completed these basic steps, you’re ready to hang your shingle on your front door and do what you’ve been trained to do.
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