Once you’re ready to start practicing medicine on your own, there are countless different factors that you have to take into place. Not only do you have to consider every factor, but you must have a plan set in place. This will help you to clearly see what your goals are for the future, and it can help you to keep your practice moving in the right direction.
As if you thought medical school was hard enough, planning out and learning how to start your own private medical practice requires that you put just as much effort in as you did when you were in medical school. Here are some basics on how to start your own medical practice privately. You’ll ultimately need to consider your funding, legal structure, licensing, and your credentials.
Funding
First and foremost, you’ll need a business plan about how you expect to pay for your private medical practice. To begin this, you should make a list out of everything that you’ll need in your practice, anything from the construction of the building, the real estate, the equipment to the accountant, office furniture, and the supplies that you’ll need to operate.
Not only that, but you’ll also need to invest in a high-quality and extremely reliable medical records software that can reliably store all of the records electronically. Having a trustworthy electronic health record system is important so that you don’t lose any information, so make sure you choose wisely. For example, experts from a Chicago IT company say medical practices must keep their technology running smoothly while securing your network and data.
To help you afford all of the startup costs of your private medical practice, you may want to consider applying for a small business loan. But given that you likely already have debt from medical school, you’ll need to keep track of all your expenses carefully.
Legal Structure
The legal structure refers to the legal forms of organization that you plan to pursue in your medical practice. This structure will ultimately determine how you’re responsible and liable for debts, and it’s essentially used for your taxes. For this step, you should consider hiring a health care attorney because there are various legal documents and legal knowledge required that can be made easier if you hired someone with experience.
You ultimately have the option of choosing between seven different legal structures: sole proprietorship, general partnership, limited partnership, C corporation, S corporation, LLC and LLP. Not only will you have to choose which legal structure you want to partake with, but you’ll need to also contact the IRS about what your EIN will be. Your EIN is essentially the identification number that the government attaches to your business.
Licensing
You’ll also need to get licensed with regards to the state and federal regulations in the area that you plan on practicing in. These regulations vary by state, so you’ll need to do your research to make sure that you have the correct licensing completed to legally practice in your area.
There are also various types of licensing that you’ll need to complete, including the state license by the medical board in your state, the DEA registration to prescribe medicine and you’ll also need to apply for the National Provider Identifier Number, which is what insurance providers use to keep track of you and your practice.
Credentials
Lastly, you’ll need to get your credentials before you start practicing medicine privately. You will need credentials in order to legally accept insurance from your patients. It’s important that you plan ahead with this since it can take up to a few months for you to fully receive your credentials. To do this, you’ll want to look at the insurance providers in your state and know how to communicate with them to negotiate contracts.
Overall, starting your own private medical practice takes a lot of time, planning, effort, and patience. You’ll need to carefully create a plan before you start acting, and it’s important that you’re knowledgeable about everything you need before legally practicing your own medicine. Once you get everything figured out, you can finally start your successful business.
