Any business requires preparation, but the medical industry has a specific set of rules and regulations that set it apart. Before diving into the development of a new medical practice, it pays to be aware of medical financing, credentials, legal structure and required registrations and licensure.

Funding

While asking for more debt is intimidating for any medical professional, especially when still managing medical school debt, it is likely necessary to develop your practice. Like any other small business, there are a myriad of loan options available from traditional lenders and even private investors. The SBA offers two loan programs – the 504 and the 7(a) – that can help individuals with less than perfect credit.

Credentials

Beyond medical financing, you will need to be approved to accept private or government health insurance from your future patients. The process is known as credentialing and can take several months to complete with insurers inquiring about your background, education and residency. Additionally, most insurers will require you to be appropriately licensed with malpractice insurance.

Legal Structure

The legal structure of your practice is primarily designed for taxes and to determine liability issues. While C corporation status is an option, it would require you to pay taxes at the business level as well as on your personalincome. Most practices choose S corporation status, which only mandates they pay taxes on personal income from the business.

Licensure

While any doctor is familiar with state licensing, there are other requirements when beginning a private practice. For medical professionals interested in opening a private business, they will need to receive or pursue the following:

• National Provider Identifier:This is a number issued to medical providers through the National Plan and Provider Enumeration System, and it helps insurance networks keep track of health care professionals.
• State Registration and Licensing: Before being able to practice medicine at all, you will need to be registered and licensed by the medical board in your state.
• DEA Registration: If you are going to be running a practice that requires the use of prescriptions and other drug treatments, then you will need to register with the DEA to receive a number.

Several other requirements are dependent on the type of practice you plan on running. If you are unaware of the licensing requirements, then reach out to your state board for more information.

When starting your practice, there are numerous things you need to be concerned with, from medical financing and credentials to legal structures and licensure. No matter your specialty, refer to your state board to ensure that your bases are covered before starting out in your own practice.