How to Set Up a Medical Practice

how to set up a medical practice

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Launching your own medical practice can be a daunting task.  For 20 years, MED3000 has helped physicians around the country establish and build their practices.  Here are some of our tips for getting your practice off the ground.

First Steps for Building Your New Medical Practice:

  • Establish a Tax ID #
  • Determine your legal status
    • Will you be a sole proprietor, a partnership, a C Corp, S Corp?
  • Credential your new company and providers with payors
    • Many practices underestimate how long it takes to get your practice credentialed, and some practices fail because of this
    • Plan on between 3-6 months to get your practice fully credentialed with payors and set up with Electronic Data Interchange (EDI), the clearinghouse for electronic claim submission with your payors
      • Start with Medicare and Medicaid, as the credentialing process with these payors takes the longest
      • Consider working with an expert vendor to simplify the provider enrollment process
  • Determine your practice location
    • If you can find an existing office space already set up for a medical practice (exam rooms, waiting rooms, etc.) you can save $200-$300K in startup costs to build out your practice space
  • Choose your practice software for billing and electronic health records (EHR)
  • Determine whether to hire billing staff or outsource to a revenue cycle management company
  • Obtain business and malpractice insurance
  • Create a marketing plan for your new practice

Prepare to Invest

It’s no surprise that setting up your medical practice will require a significant financial investment.  Planning ahead for these critical expenses before the cash begins to flow will be key to your success.

  • Rent
  • Buildout Expenses
  • Credentialing
  • Recruiting/Payroll

Once your practice begins seeing patients and receiving payments, set your budgets to anticipate a 30-day lag in cash flow.

Consider Practice Integration

If you decide you want to practice independently, without building a practice from scratch, you might consider integrating into an established medical practice

When you find a practice that shares your goals, integrating can allow you to see patients immediately while leveraging the power of an existing practice.  

Stay Focused On Practicing Medicine

As a physician and medical practice owner, the work on your plate can be overwhelming.  You set out to practice medicine, but you find yourself knee-deep in financial, operational and human resources work.  You don’t have to go it alone.

Healthcare provider services like MED3000 can support your business needs while allowing you to remain independent and focus on your patients.  You can outsource a la carte, getting support for accounting or coding, or contract for full practice management services.

Have questions for our experts, or want to learn more about how we can help you establish your medical practice?  Contact MED3000 today!