Startup issues to consider when opening up your practice and minimizing your risks.
For physicians who are opening up their own practices — or thinking about it — there are several financial issues to consider.
The planning should start immediately. If you are going to borrow money for start-up costs, you will need to manage your education debt and make arrangements with bankers who specialize in business loans for medical practices. It’s very important to have a financial advocate who knows banks that specialize in this area and can help you establish a financial plan in alignment with your goals.
You should also consider engaging your financial planner to identify accounting firms, third-party administrative agencies, etc., that specialize in handling medical practices, including reimbursement, staffing and taxation. For example, if you or your staff is not coding patient visits correctly, your compensation from insurance companies could be less than it should be.
In other words, your financial advocate should be minimizing your risk and maximizing your return.
Robert J. DiQuollo, CFP, CPA, is president of Brinton Eaton a wealth advisory firm in Madison, N.J., serving individuals and institutions throughout the U.S. He can be reached at email@example.com.