After going through years of training and countless hours of residency, you are now ready for your own medical practice! It will definitely be a challenging process at first. However, once you are ready, there are several factors to consider. Along the way, you will need counseling from your most trusted accountants, medical consultants, real estate brokers, and attorneys. We will attempt to address a few topics to consider while starting your new medical practice.
Choose an Entity/Legal Structure
Your medical practice will have to choose what type of entity/legal structure to file with the secretary of state. This filing will let the IRS know how the medical practice will be paying taxes, as well as the liability of the practice. The entity/legal structure will also determine how much or to what extent the doctor will be personally liable for if there are future lawsuits filed against the medical practice. For example, S corporation doctors pay taxes on their personal earnings from the medical practice, whereas C corporation doctors are taxed on the entity level and on their personal income from the medical practice. We suggest contacting your certified public accountant or tax professional for the right entity/legal structure for your medical practice.
Obtaining credentials to accept insurance from government and private health insurance companies is a long process. This process can take anywhere between several weeks to several months to complete. The insurance companies would like to see that you have the proper licenses and obtained insurance against malpractice. Some states don’t require malpractice insurance, it depends on your medical practice as well as the location of your office.
Location, location, location. You may have heard this before, “Location is king.” Your medical practice should be highly visible, preferably in an area that has a lot of traffic. Keep in mind, it is crucial to have an accessible location where patients can easily go to obtain services, and as a bonus, you will gain new patients just by having that great location. A location that is close in proximity to grocery stores, warehouse clubs, and fining dining establishments will be key to growing your medical practice.
The preferred way to finance your medical practice equipment is to go to your existing financial institution. Depending on where you bank, your existing financial institution may have programs catered to medical practices. Even if you have just started, your financial institution may be able to give you great rates and payment options. These programs may have financing options that you cannot get from other institutions or even the manufacturer. Your financial institution will take into account your relationship history with them as well as your balances, products, and services for the best pricing. However, some institutions do not offer such programs, and you will probably have to shop around for the best deals.
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