Practice Startup

July 30, 2022

Starting a New Medical Practice

The complexities of setting up and running a medical practice may seem overwhelming. Understandably, most physicians do not have extensive experience running a business, but the prospect of working for oneself is still enticing. For this and other reasons, it is highly advisable to consider obtaining the services of a medical practice consulting firm to get your new practice off the ground. This article will cover some of the basics you should be thinking about when getting started.

Practice Startup

Plan Ahead

Six to nine months before you would like to open your doors, begin looking for a location. The right location is essential for the success of any business. Finding the right one will take some time and you will need even more time to renovate and outfit the space to your needs. Shop for office furniture and medical equipment during this time. Good, used medical equipment is available, and for as little as half the cost of new equipment.

Set up and organize your business entity with the state, and apply for your tax ID number from the IRS. At least three months before you are ready to begin seeing patients, apply for your Medicare number. Their approvals can take from two to three months. Apply for certification with commercial insurance companies shortly after. Most will provide an answer within one month.

Insurance Coverage

Malpractice insurance is the obvious coverage that any medical practice is going to need. In addition you will need business liability insurance for any unforeseen accidents or injuries that may happen at the office. Your business liability insurance should also include worker’s compensation in the event that an employee is injured on the job. Meanwhile, business overhead insurance will keep the operation in business if you are unable to continue working. Additionally, health insurance is a must to secure good staff members.

Staffing

Front office staff, nurses, records clerks, technicians, bookkeepers, and therapists are just some of the positions you may need to fill. Early on, and depending on the size of your practice, your employees will need to fill many roles. The recommended number of staff members for a medical practice is 2-3 per physician. As the practice grows you will hire more specialized staff, but early on it is advisable to pursue experienced applicants with varied skills.

Billing

A small medical practice startup can get by with an internal billing staffer for a short while, but you will be surprised how quickly the process becomes overwhelming for a single person. The best advice is to hire a billing service from the start. A good billing company makes a point of staying up to date with the ever changing medical billing landscape. With the major coding changes brought on by ICD-10 just this month, this is especially important.

This just scratches the surface of the steps involved in starting a medical practice. ProMD Practice Management offers practice startup services that can help you get past the initial challenges and get your practice on its way to success and profitability. Our billing services are second to none, and our current clients enjoy collection rates as high as 98%. Call us today to learn how ProMD can help you get your new practice off the ground.

ProMD Practice Management is happy to help with your billing assessment needs so you can maximize profits and increase patient satisfaction. To learn more about how ProMD can make your practice run like a well-oiled machine, call 888-622-7498 or fill out our online form to request a billing assessment.

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