How to Start a Private Medical Practice
If you are out of residency or are simply considering starting your own private medical practice, the process may seem overwhelming. You will need a solid business plan, legal counsel, funding and a way to ensure compliance with all California state, as well as federal regulations. Consider the following as you begin your own private medical practice.
You will need to choose a business structure, which will impact everything from how you operate your business to what kinds of taxes you must pay. The state of California will not allow a medical practice to form a traditional corporation or limited liability company. Instead, the doctor must register the practice as a professional corporation. You will also need to apply for an EIN, register for local and state taxes, and make sure you follow all proper procedures to establish and register your business in California appropriately.
While you are a doctor or medical professional, you are also going to be a small-business owner, and you may need a small-business loan to help you cover your startup costs. While you may feel overwhelmed with your existing student loans from medical school, you will need to find a way to fund your new medical practice. Consider getting a loan backed by the U.S. Small Business Administration. Take time to determine exactly what all of your start-up costs will be, including equipment, accountant and consulting fees, medical records software, computers, office furniture, disposable supplies, and more. Consider looking into other medical practices to see if they are interested in selling their practice (such as a retiring doctor.)
Credentials and License
You will need to make sure you get your “credentialing” which is a way for you to accept government or private health insurance from your patients. This will be critical, as it is likely the primary way in which you will be paid. Make sure that you are not only properly credentialed, but also that you are properly licensed and have medical malpractice insurance. You will need to ensure that you have correct licenses from the California medical board, sign up with Medicare and Medicaid, have a national provider identifier, a DEA number to prescribe medicine, and even a certification by the Clinical Laboratories Improvement Amendment if you plan to have equipment such as X-rays in your office.
Contact an Experienced Attorney
One of the most important steps you can take as you start to consider establishing a private medical practice is to visit with an experienced attorney who can help you through the process and ensure that you do everything correctly to avoid costly mistakes later. The formation of a private medical practice in the state of California is a complex legal process. Visit with an experienced attorney at the Law Office of Kris Mukherji at (858) 442-5747 to help you ensure your legal rights are protected.