How Do I Start My Very Own Private Medical Practice?

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Did you know that up to 89% of medical school graduates leave school with an average of $203,062 in total education debt?

Medical school can be extremely expensive. If you’ve recently graduated from medical school, you might be tempted to take the first job you can land.

However, if you dream of opening your own private medical practice, don’t let debt stop you! Keep reading to learn the steps you’ll need to take to turn your dream into a reality.

Obtain Funding

To start a private medical practice, you’ll need to fund your business. The dollar amount you’ll need depends on your situation.

To cover equipment and startup costs, try to secure at least $100,000. Additionally, consider a $100,000 line of credit to cover bills and payroll until your cash flow becomes stable.

You may have enough money to start a private medical clinic without outside help. If not, submit a loan request to a bank or private lender.

Create a Pro Forma

To open a new medical clinic with the help of lenders, you’ll need to create a pro forma. This is a lighter version of a business plan that outlines debt and revenue projections.

A traditional bank loan can be tricky to obtain if you have a negative debt-to-income ratio because of medical school loans.

Submit your loan request and pro forma to at least five banks so that you can compare and find the best offer.

Purchase Equipment

Once you have your method of funding, you can start purchasing the equipment you’ll need to open for business.

The medical industry is filled with equipment options that you should consider purchasing, such as:

  • Electronic health record systems
  • Practice management systems
  • Medical billing services
  • Medical transcription software
  • Credit card processors

These programs are all helpful and can make office management tasks more efficient.

Don’t forget to purchase the medical equipment you need based on the services you plan to offer. For example, if you are opening a surgery center, pain management facility, etc., you might need ventilators.

Find more about respiratory ventilators now.

Hire Staff

Start hiring your team of professionals once you obtain funding. Assemble your front-office team and the team that will be working closely with you.

As a medical practitioner, you are expected to have knowledgeable individuals working for you.

To ensure you hire the right people, consider background check services. If you want your medical practice to be founded on trust, you need to check their employment and criminal histories.

Understand the licenses and certifications your staff needs to have. If your staff doesn’t have the proper credentials, your medical practice will face big problems.

Prepare to Open

Before you can open your doors, you’ll need to complete logistical steps. Every business is required to do the following:

  • Incorporate as a legal entity and obtain a tax ID
  • Establishing procedures, compliance, and policies
  • Purchasing insurance
  • Credentialing physicians with payers

Once everything is complete from a legal standpoint, you can open your doors and start evaluating practice performance.

Open Your Private Medical Practice

When you complete all of the steps in this guide, you’ll be ready to open your private medical practice.

A new medical clinic can help your community and provide many opportunities for you. If you are a medical practitioner who dreams of opening your own practice, start working towards your goal now!

For more informative business articles like this, check out the other posts on our website.