The advantages of starting a medical practice
Medical practitioners spend years in school studying and training so they will be highly skilled at the time they launch their careers. But once they have finished their residencies and are ready to begin, joining an established practice or working for someone else may not be satisfying enough for some young doctors.
Many medical professionals in Texas and elsewhere are willing to take on the challenges and rewards of starting up their own practice, even if it involves acquiring business knowledge to ensure its success. For Dallas-Fort Worth residents, it will help to first get information on how to create a business plan, research the necessary steps to be in compliance with state and federal regulations, and then get the necessary funding to begin.
Securing the necessary funding first
Any small business startup will face financing challenges, but for medical practices, dealing with insurance companies and recent changes to health care legislation means being able to meet the cash flow gap that will arise when they are waiting for insurance reimbursements. Getting payment from patients at the time of service can also be a daunting task.
When deciding on what type of loan to apply for, it will help to first examine the costs associated with real estate, construction, medical equipment, as well financial and other consultant fees. For many young medical professionals, managing college debt should factor into these calculations.
Finding the right business structure and getting licensed
It is essential to decide on a business entity structure that addresses liability concerns and how the business will pay taxes. Medical practitioners often choose S corporations, as with this structure, they only pay taxes on their personal income. This type of legal structure also provides limited liability protection, meaning that the owner’s personal assets are shielded from lawsuits, debt, or losses.
Before starting the practice, doctors must also comply with state and federal regulations, and make sure they have:
- State licensing
- A national provider identifier
- DEA registration
- Participation with private insurers, Medicare, or Medicaid
While it may feel like a great deal of work to go it alone, it is advantageous to have legal and financial resources available for advice and support. And rewards of working on your own and providing the standard of care that your patients deserve will likely be more than worth the effort.