According to the American Medical Association (AMA), 49.1% of physicians in the U.S. are private practitioners. If you feel that working for even a famous doctor is not for you, you probably plan to join this list of private medical practitioners.
But where would you start? What steps should you follow to succeed in your new medical practice?
This simple guide explains the simple steps you should follow to start your new medical practice successfully.
Complete the Preliminary Tasks
If you decide to be a private medical practitioner, start by gathering information about opening a new medical clinic and your competitors. The information will help you determine whether you still want to venture into private medical practice.
Next, decide where you want to locate your new medical practice. Your private medical practice will most likely succeed if your chosen location has a high demand for physicians.
Determine the source of startup funds. It could be personal savings or a loan. You can also negotiate for support from an established hospital looking for practitioners in your specialty.
The hospital may be willing to support your business for a few years. In exchange, you will set up your private clinic in their vicinity.
Choose a Business Model and Incorporate the Clinic
You should decide on the type of practice model you want to operate. The three options to choose from are traditional, concierge, and direct primary care. If you don’t like the stress of dealing with insurance companies, you can select either the concierge or direct care model.
If you choose the traditional model, you will have to select the insurers you will work with. You will need to get in touch with them for the credentialing process.
You should also think about the kind of business entity suitable for your clinic and incorporate it. An example of an appropriate entity is a limited liability company (LLC). An LLC will protect your private assets in the case of lawsuits.
Obtain a Tax ID number
Contact the Internal Revenue Service (IRS) for a taxpayer identification number. You can also ask for an employer identification number for your clinic. Ensure that you learn about and register for all the federal and state taxes.
Organize Your New Practice Operations
It is vital to plan how you will run your medical practice. You can organize the operations by doing the following:
Obtain Malpractice Insurance
It is common for patients to sue healthcare providers for suffering harm or injury when receiving care in the medical industry. You should protect yourself from such claims and lawsuits by obtaining medical professional liability insurance. The insurance will ensure that you don’t pay out of your pocket if you face such a lawsuit.
Establish a Fee Schedule
Make a list of the services you will provide and indicate how much each will cost. For more accuracy, you can ask other practitioners for a copy of their fee schedule. You can then develop your schedule by making minor adjustments to make your prices more competitive.
Prepare the Necessary Credentials
Part of the planning process may involve assembling your essential credentials. You will need them when signing up with Medicare and Medicaid or submitting applications to insurance providers.
For example, insurers will want to know about your medical education. They may also be interested in ascertaining whether you have the proper license.
Purchase Medical Supplies, Equipment, and Software
You will need to assemble all the tools of the trade to start operating. At the minimum, you will need the following:
Electronic Health Records (EHR) Software
One essential piece of software you will need is electronic health records (EHR) software. In today’s healthcare industry, EHR is an indispensable software that will help you collect, store, and share health information.
This software will help automate all your billing tasks. It will help you verify the patient’s insurance, submit claims, and process payments.
If you don’t know how to navigate the billing process, you can outsource it or contact a team of billing professionals to help you out. A company like Coronis Health can help you with Obgyn medical billing service to increase the number of reimbursements.
Equipment and Supplies
Before you decide to buy the equipment and supplies, find out whether you can get them for free or at a bargain. For example, you can get the equipment from overstocked hospitals or retiring doctors.
Make sure you have a complete checklist of the necessary equipment, supplies, furniture, clothing, and services like the internet.
Make Human Resource Decisions
You will need to ensure that your new medical practice has the right personnel to dispense quality care. To start, you should determine the kind of staff you will need to fulfill various roles in your medical practice.
Next, you should come up with clear expectations for your employees. You can state these expectations during the hiring process and include them in the employee handbook.
It is vital to develop a plan to ensure that your staff performs according to the healthcare industry standards. For example, they should not violate HIPAA rules during their practice.
You can perform background checks to ensure that they are qualified to serve in their roles. You should also organize training programs to sharpen their skills in best healthcare practices.
Market Your New Medical Practice
Once you have set out everything about your medical practice, you should promote it to attract clients. There are various strategies you can use to market your new medical clinic.
One way is by joining a medical association that will allow you to network with other health practitioners. Your peers can refer their patients to your new medical practice.
You can also promote the practice online. You should start by setting up your website to have all the information a client would need.
You can also set a profile on Facebook and Healthgrades. Encourage your clients to leave positive reviews on these platforms. Getting in touch with the local community can also connect you with potential patients.
Get Ready to Start Your New Medical Practice
Starting a new medical practice can be overwhelming and exciting at the same time. This guide prepares you for your journey towards becoming a successful business owner. Following these tips can prepare you for a career path that guarantees you autonomy as you do what you love most.
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