Did you know that in 2019, 45.9% of practicing physicians owned their own practice? If you recently earned your medical degree and are now looking into how to start a medical practice, you are in the right place.
Keep reading to learn everything there is to know about opening a medical practice.
Funding
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Every medical practice will need funding just like any other business out there. It might seem a little tough at first between medical school debt and startup costs but there are different options available.
You can look into loans from the United States Small Business Administration, private bank loans, or loans from family and friends. When you are figuring out how much money you need make sure to take everything into consideration such as rent, construction, equipment, supplies, and reliable medical equipment from companies such as Coastline International Inc.
Credentials
One major step that you will have to go through is submitting your credentials in order to accept private health insurance from patients or government health insurance. Keep in mind that sometimes getting your credentials accepted can take several months.
You normally will need to submit your medical education and your residency information. Something else that you will have to submit is your malpractice insurance and your license. Double-check if your state requires malpractice insurance because you will not need this in every state.
Legal Structure
The next step is to choose the correct business structure for your practice. This is what will determine how much you will have to pay in taxes and how liable you will be for any losses, lawsuits, and debt.
Most private medical practices opt to form S corporations because this way they only pay taxes on their personal income that they receive from their business. If you form the practice as a C corporation then your business will be taxed at the entity level and on the personal income from the business.
We highly recommend hiring a health care attorney to help you draft the proper legal documents including, your articles of organization and articles of incorporation. Once you choose the best legal structure for your practice then you will have to apply for an EIN (Employer Identification Number). Your EIN will identify your business for tax purposes.
Licenses
Last but not least, you will have to get all of your licenses in order. Make sure that you get licensed from the medical board in your state. You will also need to apply for a national provider identifier number. This number is used by Medicaid and Medicare to keep track of health providers.
Now You Know How to Start a Medical Practice
We hope that now that you have the exact steps on how to start a medical practice you can feel confident moving forward with starting a medical practice.
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