In 2018, 40 percent of physicians still worked in practices that were physician-owned and employed 10 or fewer doctors.
From doctor-lead decision-making to having control over how many patients to schedule per day, there are many benefits of starting a private practice.
Plus, in rustic areas where the closest healthcare options are often an hour or more away, private practices can be a vital means for rural health care access.
If you’re a medical doctor and you’re thinking about starting a private practice, read these seven tips to ensure you set yourself up for success.
1. Don’t Rush And Get Licensed Right Away
The longer you wait to open your doctor’s office, the longer you’ll go without patients to help and payments to show for it. However, one essential tip for any budding private practice doctor to remember is – don’t rush.
Don’t settle on a location before you develop your business plan, for example. Likewise, you must define what type of practice you’ll be and what you’ll provide before you hire your staff.
Make sure that one of the first things you do is to obtain your state medical license. If you’re anxious to hire a staff and get started before you get your license and find a location, you’re skipping steps.
You’ll have to get a national provider identification number, too. Insurance companies, Medicaid, and medicare all use this number to keep track of providers, so you can’t practice without it.
To be able to prescribe medication, you also need a DEA number, which you can apply for on the DEA website.
If you have an in-office laboratory or x-ray equipment, you’ll have to register with your state through the health department.
2. Find A Mentor
Regardless of how talented, seasoned, or knowledgeable you are, no harm has ever been done in getting advice from someone else who has already walked the path you’re about to venture.
Do you know anyone else who’s launched a medical practice of their own? Do you have a colleague or friend who knows a private practice owner?
Give them a call! Ask for advice. Whether you take it or not, it’s an excellent way to gain insight into establishing and running a private practice.
Plus, it’s the perfect opportunity to start building your referral network and establishing your credibility.
3. Put Everything In Writing
It’s an unfortunate truth that people don’t always mean what they say, but it’ll save you time and disappointment in the long run if you prepare for the worst (by putting everything in writing) and hope for the best.
Anyone who offers to help or you strike a deal with – make sure it’s all in writing, even if it’s just a simple email confirmation.
Put all of your own plans in writing too. For example, your business plan should get developed at the very beginning of your private practice journey.
What Is Your Business Model?
Define your business model in writing early on.
Traditional business models entail doctors collecting patient co-pays and then billing insurance companies for reimbursement. Using this model, doctors typically have to see a lot of patients to cover costs.
Using a concierge model, patients pay a flat membership fee for services. This fee can be either instead of or in addition to billing the patient’s insurance company. Doctors using this model tend to see fewer patients and are thus expected to be more available.
Under the direct primary care model, patients pay a flat membership fee too, but the fees are typically lower. Insurance is never accepted under this model.
4. Find A Good Location
Once your paperwork, licensing, and plans are in place, it’s time to find your medical practice location.
Take the space into account and make sure it’ll work for the way you want things to run, including equipment and storage space, etc.
Think about where you live, how long your commute will be, and how accessible it is to potential patients.
Especially if you’re setting up in a big city, try to pick a central location where patients will be willing to commute regardless of which neighborhoods they reside in.
5. Choose The Right Patient Management Tools
It’s important to choose the right practice management tools and apps, not only so that your business runs smoothly, but so that you follow HIPAA laws and regulations as well.
Patient information is sensitive and must be protected. Rather than having to hire a large administrative staff, allocate part of your budget toward tools that’ll allow your staff to focus less on administrative tasks and more on patient care.
Choose a program that allows you to create treatment plans, take notes, send invoices, communicate with patients, collect payments, and integrates with any other platforms you’re considering for your business.
Ensure that your staff receives the proper training for all software and tools used at the office. Have a security plan in place too. Use two-way encryption passwords where you can and only provide staff access to patient data when it’s absolutely necessary.
6. Hire A Dream Team
It’s only natural to want the best of the best for your team. Remember that from the first face patients see to the experts who treat them, every person on staff is a brand ambassador for your practice.
Take your time in the hiring process and provide adequate training reinforced by established leadership and practice expectations and guidelines.
Build a relationship with every individual you hire and start small.
7. Manage Your Time And Take Care Of Yourself
When you work for yourself, it’s easy to lose the work/life balance. Don’t neglect your health, your time, or your family.
The healthier and happier you are, the easier it is for your team to follow suit. Nothing turns patients away more than a disorganized, discontent staff who are overworked and without lives of their own.
Be prepared for setbacks and bumps in the road, but don’t use those as an excuse to neglect vital aspects of your health and wellness.
Get disability insurance for doctors, too. If anything happens to you or one of your private practice doctors, it’s crucial that coverage is available.
Starting A Private Practice Is Exciting
Starting a private practice may be overwhelming at times, but it’s also exciting! Enjoy your process and take the time you need to make decisions carefully and thoughtfully along the way.
Make a checklist that coincides with your timeline to ensure you don’t skip any steps.
Are you overwhelmed by all the paperwork? Take a look at our many forms and templates to help with your documentation along the way!
