Those who chose to practice medicine are likely motivated by a desire to help people. Sometimes, medical professionals can feel that the freedom to make their own business decisions will help better ensure they can meet this goal. They may not want to follow the requirements of other practices or have a desire to remain independent.
Whatever the reason for starting one’s own practice, the following tips can help to better ensure it goes smoothly.
#1: Get funding
A traditional bank loan is a likely option. It is important to put together a clear pro forma. This clear outline of cash flow needs can help better ensure a wise business plan and may increase odds of loan approval.
#2: Get credentials
A medical degree is important, but without proper credentialing the practice may not get paid. Take the time to complete the process with the payers you plan to work with. Unfortunately, this can take longer than ideal. Some experts in the field estimate anywhere from 90 to 150 days to complete the process. Get the process going with enough time to reduce the risk of credentialling holding up opening the practice.
#3: Get a business structure
There are multiple options. Some of the more common include a partnership or corporation. There are different types of corporations which offer different levels of liability protection and tax benefits. Four structures that practices often consider are the S-corp, LLC, C-corp and general partnership. Review the pros and cons of each before making your decision.
Attorney John Rivas is responsible for this communication