New Practice Startup


Congratulations! You’ve made that bold choice to open a practice, and we couldn’t be happier for you. Well, except we could…

Let us help you start off on the right foot and eliminate many of the common pitfalls associated with opening a new practice:

Not Pre-Planning

We get it, you’re excited. You’re ready to be your own boss(es), and when it comes to a choice…you’d rather treat your patients over worrying about rental agreements every time.

Not spending enough time planning, though, means you’re starting off on the wrong foot. Don’t wait until you’re in your new office to find out that the suite three doors down that’s under renovation is actually your direct competition.

Planning now gives you a long term vision to guide you to success, without a lot of trial and error.

Get your comprehensive business plan in order. Outline how you want to start and where you want to be. What’s your plan for the first 90-days? The 9-months after that? The 4-years after that? Include contingency planning to get a sense of what you can do if future events don’t end up happening.

Start canvassing your referral sources the minute you feel you’re good to move forward. Let them know who you are and what you do. Get them excited about your venture, and when they can expect to get patients into you.

Not Adhering to That Planning

None of this is going to happen overnight. Period. Any major changes need to be accounted for. Don’t fall victim to procrastination or FOMO, once you’ve set up your plan make sure you’re sticking to it or making guided adjustments to prevent issues.

Your credentialing will take as long as 6-months to complete, longer if you’re a new provider. Site procurement, potential renovations, and equipment outfitting can take 3-4 months. Sourcing and setting up an EHR can take 2-3 months. None of these should be rushed, and all of these require a watchful eye.

Not Paying Attention to the Money

It’s better to outgrow your location than it is to struggle to pay for it. Make sure you’re budgeting appropriately for the clinic size you realistically command. Even a small office can be highly productive, with the right set up. Don’t worry about buying for five years from now when tomorrow hasn’t even arrived.

Get a conservative pro forma for the next 3-5 years. You need to show yourself, the bank, and any potential partners or investors how you’re going to spend money. You’re going to need at least three months of operating funds (or an equivalent credit line) to keep afloat until your claims kick in. Until your contracts are in place, it’s best to assume you’ll be paid Medicare rates for all services rendered.

Once your payors have approved your credential packets, you’re looking at 14 days until Medicare pays your first claims, and up to 30 days for commercial payors.

Not Outfitting Your Practice Appropriately

Never skimp on your productivity tools. Most freemium EHRs seem like a great offer to get your practice off the ground, but what they save in service fees you loose in unexpected add-on costs and lost productivity. Pick the most EHR you can reasonably afford.

Conversely, well-maintained used equipment from a trusted vendor will serve you far better than brand-new equipment you will struggle to pay-off.

Rather than cutting corners, focus on ensuring that appropriate levels of equipment and supplies are in place to get you started. You can always upgrade you’re tools down the line as you grow, but not having what you need when you need it can cost you patients.

Not Hiring the RIGHT People

Hiring is a nightmare for established practices, it’s time consuming and easy to get wrong.

While you want qualified people that are invested in your success, you want to avoid eliciting “founder’s syndrome” or “shared commitment.” Both can give the impression that you’re going to build your business of the backs of others with little in return, and can end up connecting you otherwise less than desirable candidates.

Start advertising 4-6 weeks before you actually want them to start. Most people will need to give a notice, and it takes time to select quality staff.

Look for someone that aligns with your mission. Track records can be impressive, but seek employees that show potential. Passion can be combined with skill sets to create a rockstar asset.

Ensure you have a proper on-boarding process to collect your legal obligations, familiarize them with your needs and wants, and get them up to speed with your EPM solutions.

Not Keeping Up with Your Referral Sources

Circle back to those referring providers! Make sure you’re providing updates to your progress at respectful intervals.

Once you’re in operation, make sure that you and your staff are responding to their communications requests in a timely manner. Get their patients scheduled with-in three days on submitting the referral, and get the treatment documentation back within 24 hours of the visit.

Not Contracting with Us

Contract with our team to help coordinate this mountain of a task list. Our team can help develop the needs, source the wants, and bring the wow.

Our Start-Up service includes:

  • Comprehensive Business Plan: Includes SWOT analysis, practice modeling, staffing plan, marketing outline, and establishing service zones.
  • Establish your Go-Open timeline.
  • Set up practice accounts, and federal/state requisite items (EIN/TIN, NPI, business license, and so on)
  • Establish your pro forma across intervals of 12-months, 24-months, and 5-years.
  • Establish your market appropriate fee schedule.
  • Find your perfect location and negotiate the lease.
  • Manage outfitting your location with supplies and equipment
  • Manage licensing, contracting, and credentialing for payors and networks.
  • Manage your EHR & PM (EPM) selection, service structure and setup.
  • Develop your employee handbook, policy and procedures manual, and staff training program.
  • Coordinate your staff hiring and on-boarding.