Without a doubt, the environment for opening a private medical practice has changed over the past few decades or so. The political climate has resulted in a significant amount of healthcare reform and it has become common for hospitals to merge together, becoming giant hospital systems that can sometimes encompass dozens of hospitals. The added bureaucracy and the consolidation of power has made it difficult for private practices to survive in today’s era of modern medicine, leading to a large number of physician groups selling their practices to larger hospitals networks; however, this doesn’t mean that private practices aren’t successful. For physicians desiring to open a private practice today, what are some of the tips that they should keep in mind?
Choose the Location of the Practice Wisely
Similar to the real estate industry, the most important factor involved in opening a successful private practice is location. Location matters because it determines the competition in the area. If there aren’t a large number of physician practices or powerful hospitals in the area, a private practice has a better chance of succeeding. In addition, location will determine the visibility of the practice. If a practice is easily seen from the street or placed in an area where there are plenty of patients, the practice has a large base of potential customers from which to draw. Think about the location carefully before purchasing real estate.
Think About Insurance Companies and Negotiations Early
Many physician practices think that they will be able to move into an area and earn the agreements that many of the other physicians have with companies in the area; however, this isn’t the case. Physician practices must receive the proper credentials from the insurance companies they wish to deal with. Unfortunately, this is a process that can take months to complete. Therefore, this is a process that is better started earlier than later. If paperwork isn’t a strong point for a physician practice, enlist help to get it done quickly. It is difficult for a physician practice to earn revenue without the proper credentials from the insurance companies in the area.
Select an Accountant Carefully
Running a physician practice is like running any other business. Anyone who has any experience running their own business can attest to the fact that the tax laws surrounding a business are challenging. While nobody wants to pay more in taxes than they have to, it is important for a physician practice to make sure they are staying within the IRS code. Not all accountants are going to know the ins and outs of tax law surrounding a medical practice. Most states have a list of trusted accountants for medical practices that physicians can contact. Choose an accountant carefully.
Related Link: How to Market Your Medical Practice
Consider the Headache that Medical Billing and Coding can Cause
Physicians who work for hospitals may have a billing and coding department that will handle this process for them; however, this isn’t a luxury afforded to private practices. Billing and coding is a long process that could be spent seeing other patients and generating revenue. To make this a reality, many private physician groups will outsource their billing and coding work to a trusted third party for a variety of reasons:
- These companies are highly trained to maximize the revenue that a physician practice will generate through billing and coding.
- They work hard to stay up to date on the latest changes in the coding world, saving physician practices from having to learn new sets of codes.
- The time they save physicians in the coding process translates to increased revenue.
- They can negotiate with insurance companies on behalf of physician groups.
Consider outsourcing the billing and coding of your medical practice to a qualified third party like M-Scribe. Contact us today at 888-727-4234.