Starting a medical practice is an exciting way to take the practice of medicine into your own hands. Whether you want to focus on a specific area of medicine or you want to target a specific demographic, there are a few things you should know before starting your own practice.
Starting a Business Comes with Risks
Starting your own medical practice will come with risks. You will be responsible for upfront costs and legal issues when it comes to employees and patients. In addition, you will also experience competition with community hospitals and other healthcare providers. Before starting your medical practice, take the time to understand the level of risks your business will have.
Every business will face risks, so it shouldn’t deter you from starting your medical practice. However, using strategic tactics to overcome those risks is what will make the difference in your company’s success. Learn more about the industry in your area and determine what can harm and benefit your business.
There Are Different Types of Medical Practices
When starting a medical practice, it is important to understand your options. Typically there are five different types of medical practice to consider:
Solo Practice: Starting a solo practice means you take on all the responsibility of the business. This gives you complete control over how the practice operates and which clients you want to take. However, you may have a challenging time getting started, since you will need to cover startup costs and put in the hours.
Group Practice: Another option is to start your medical practice with colleagues. Starting a group practice will allow you to share the burden evenly with other medical professionals so you each have less risk to bear. However, it is vital that you create a partnership agreement to prevent disputes in the future.
Hospital Owned: You can also start a medical practice within a hospital network. With this, you might not have the freedom of a solo practice and you will be subject to constraints, but you will have the hospital’s working capital and marketing resources at your disposal. A hospital-owned practice can reduce the risk of starting a new business, although it might not offer a great amount of flexibility.
Federally Qualified Health Center: Similar to a hospital-owned practice, you can also start a federally qualified health center. However, you might have caps on capital depending on how the federal department allocates its funds.
Academic Health Care: You can also open a medical practice within an academic health center. If you are interested in medical research, starting a medical practice with an academic health care center may give you the flexibility to do so, although you might be limited on capital.
Be Prepared for Potential Litigation
One of the most important aspects of opening a practice that many professionals overlook is identifying liability. Legal issues are one of the greatest risks that can severely hurt a business. To protect your medical practice, you need to have an experienced attorney on your side who will help you identify potential legal issues and take proactive steps to avoid them. It is important to do this as your business grows and your risks change.
If you are planning to start a medical practice, get in touch with our team at Northwest Business Law LLC today. We can meet with you to discuss your business goals and give you the guidance you need to ensure that your business’ legal structure is set. Our Seattle business law attorneys have helped large and small businesses across Washington state resolve their legal issues. Let our team help you!
Contact us today at (206) 565-0090 to schedule a consultation!