Fewer and fewer doctors are starting a medical practice because of the high cost to start up and the legal process.
It can be a daunting process but if working for yourself means more time for you or your family and more opportunities to use your hard-earned skills then it may be worth becoming your own boss.
Are you considering starting a medical practice? Make sure you are fully prepared to make the giant leap. Here are six things you need to know to be successful.
1. Have Funding for Your Medical Practice
Many small-business owners decide to take on a business loan to help cover their start-up costs. Payment options will allow you to handle loans and make your debt feel less daunting.
Some start-up costs to start a medical practice are equipment and supplies, real estate, legal fees, accountant and consultant fees, and construction.
Some ways to lessen the financial burden can be to buy into a practice or take over for a doctor who is retiring.
2. Starting a Medical Practice Credentials
In order to set up government or private health insurance from your patients you need to begin a process called “credentialing.”
The process to deal with insurers and set up your credentials can take up to several months. You will need to provide your medical education and residency and ensure that you are licensed and that your malpractice insurance is in place.
Your branch of medicine and where your practice is located will affect which health insurance program you consider. Some examples of insurance programs are Medicare and Medicaid.
3. Legal Structure for Your Medical Practice
How to start a medical practice requires knowing how to pay your taxes and your personal liability for lawsuits, debts, and losses.
Choosing a legal business structure can become complicated and it is worth considering a health care attorney to help with your decisions and to draft up any legal documents.
4. Get Your Medical Practice Licensed
The federal government sets up regulations for specific medical specialties. You are required as a medical practice business owner to follow some basic requirements.
State licensing: Each state has a medical board and requires you to get licensed within their board.
National Provider Identifier: You must apply for a national provider identifier number. Insurances such as Medicare and Medicaid require this number to identify health providers.
DEA Registration: In order to be able to prescribe any medication you require a DEA number. It is issued by the U.S Drug Enforcement Administration which can be applied for online.
5. Location is Key to Start a Medical Practice
Investing in your practice includes choosing the right location. Some factors to take into consideration when choosing where to start a medical practice include patient population and competition.
Where you decide to set up your medical practice should be influenced by how prosperous the area is concerning city growth or future growth.
Be aware of your competition and try and find a location that is not overpopulated with other physicians in your specialty. You should be knowledgeable about your competitors’ age, what insurance they accept, and their affiliations.
6. Marketing for Your Medical Practice Business
As a business owner, you should not only have a business plan but also a marketing plan.
Some strategies for marketing your business include E-mail marketing, Direct marketing, Search Engine Optimization, and Google Ads.
Investing in your marketing strategy should be about 15% of your overall business costs initially. But your advertising and marketing should bring in around 3-5% gross revenue.
Invest in Your Medical Practice and Your Future
Starting a medical practice can be a daunting experience. The initial start-up costs and the legalities of your practice take big investment and commitment.
Finding the right location and investing in a medical office building are tasks that set up your practice for life.
Healthcare realty is a real estate investment trust that can help you invest in and manage your medical building.
Contact healthcare real estate experts today to help you begin and invest in your medical practice the right way.
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