Starting a medical practice is no easy task. But it can be an extremely rewarding professional step. We have compiled a handful of tips from industry experts that will help you get started. These tips are focused on patient satisfaction, while ensuring a healthy profit.
1. How to Start a Medical Practice Checklist
As with any business opportunity, creating a checklist for starting a new practice is an essential step to opening your own medical practice. Fortunately, the Medical Group Management Association maintains many resources that serve as basic guidelines during the initial phase.
2. Have a Solid Business Plan
While a medical practice is subject to stricter regulations than other types of businesses, it is still a business. Therefore, creating a business plan is important for 2 reasons. First, this plan allows you to put your ideas into writing in order to determine whether your plan to start a medical practice is really a lucrative venture. Second, the financial portion of the business plan will also assist with your pursuit of funding for the practice. Additionally, banks and investors need to see that you have thoroughly researched the medical practice business.
3. Secure Financing
Now that you have a business plan. It’s ready to present to lenders or investors, or it may be time to find financing. Almost all major banks across the country have special lending practices and programs that are specifically intended to assist medical practices. In our search, we found that U.S. Bank and Bank of America offer affordable financing solutions that are definitely worth a look.
4. Hire A Legal Professional
Starting a medical practice can some times mean opening yourself up to malpractice lawsuits. This is an unfortunate risk that can be mitigated with the help of a legal professional. Certain law offices specialize in representing doctors and ensuring that they have the proper protection.
5. Insurance Coverage
Opening a medical practice is a business move that requires insurance. Just like any business. However, you need to be extremely diligent about covering yourself and your business when it comes to insurance. First, malpractice insurance is just one of the types of coverage that you must hold to keep your practice from experiencing potential loss. Second, corporate insurance is also a must if you set your practice up as a corporate entity.
6. Obtain Credentials
There are unique challenges you will face when starting a medical practice. You will need to obtain credentials. Known as credentialing, this process involves the completion and filing of paperwork. A quick online search will provide an example of credential forms. Furthermore, reimbursements from some third-party payors are not made until your practice has been properly credentialed.
7. Setup Contracts
Contracting with health insurance companies allows you to accept the most popular health plans. This process involves contacting third-party payors to discuss accepting insurance policies. It is essential to ensure that you and the payor understand the contracts that you establish.
8. Install Productivity Software
Using productivity software offers an ideal solution when you want to keep your practice streamlined and running smoothly. For example, Dragon Medical One allows small practices to easily manage documentation and treatment plans while adhering to HIPAA guidelines.