The 5 First Steps to Start a New Medical Practice
So you’ve decided to open a practice? Now what?
Once you have determined that starting your own new medical practice IS for you, then it's time to dive in. Sure, you could wait until the timing is perfect, but much like anything else you do in life, there really is no perfect time. You just make up your mind, and go for it.
Here are the first five steps you should take to get started with your new medical practice.
- Hash out a budget and timeline. Starting a practice costs money. In order to spend your money judiciously, you must know what things cost. Your budget document will be a very fluid document. You may choose to have multiple scenarios included in the same document or have multiple budgets outlining different scenarios. You could look at it as plan A, B, and C.The budgetary step will involve some research on your part. Sure you can delegate this to practice start-up specialist, but it will still be more of a collaborative effort. Don’t forget to add the cost of a consultant and marketing for the first year.
- Secure tax, legal, and practice start-up advisors. Don’t look at this as a luxury. Taxes are no joke, and the right tax professional and legal advisor can make the difference in choosing and setting up the type of entity that is most beneficial to you financially.Practice start-up advisors can help you finalize your budget, allow you to continue practicing in your current position, train and hire your staff, set up and plan your marketing and prevent you from making common start-up mistakes.
- Business Entity Formation and obtain an EIN. Your tax and legal advisors will assist you in securing this information.
- Begin insurance credentialing. Yes begin insurance credentialing even if you don’t have a practice location selected. This process is long, and even though it can be a pain to change your address later with the payers, not getting paid for rendering services when you open will hurt worse. You can use your home address temporarily or secure a temporary address.
- Location selection. Begin researching options for location and building choices. Determine a timeline for any construction and installation etc.
From step five, we could go on thru step 105. This list is just a starting point. For a more detailed overview of the steps involved in starting a new medical practice, download this helpful guide.