Starting a private practice is one of the most rewarding—and challenging—moves a physician can make. Whether you’re transitioning from employment or building your career from the ground up, owning your practice means more control, better patient relationships, and the chance to create a lasting legacy. However, building a successful practice takes more than just clinical skills. It requires business planning, legal compliance, smart hiring, branding, and continuous growth strategies.
Here’s your step-by-step guide to starting a private practice—and keeping your patients for the long haul.
Step 1: Define Your Vision and Create a Business Plan
Before spending a single dollar on office space or software, start with a strategy.
Key Questions to Answer:
- Solo Practitioner?
- Group practice with other providers?
- Specialty-specific (Ex. neurology, psychiatry, pediatrics)?
- Will you do only in-person visits or add telehealth?
- Will you include ancillary services (Ex. diagnostic testing, therapy, nutrition)?
- Specialty-specific (Ex. neurology, psychiatry, pediatrics)?
- Age group, demographics, insurance type, and specific health concerns.
For additional organization and a clearly defined vision, putting pen to paper with a business plan is a good idea.
What to Include in Your Business Plan:
- Mission and Goals
- Market Analysis (local demand and competition)
- Services Offered
- Startup Costs and Equipment List
- Revenue Projections
- Marketing Plan
- Compliance and Legal Considerations
💡Tip: Tools like the AMA’s Private Practice Playbook and SCORE business plan templates can help you get started.
Step 2: Handle Legal and Financial Setup
This step is crucial for keeping your practice compliant and financially sound so you can avoid unpleasant surprises.
Legal Checklist:
- Choose a legal structure (LLC, S-Corp, PC, etc.).
- Register with your state’s Secretary of State.
- Obtain a federal EIN (Employer Identification Number).
- Secure state and local business licenses.
- Apply for your NPI (National Provider Identifier).
Financial Tasks:
- Open a business checking account and separate all personal finances.
- Choose accounting software or hire a medical-specific bookkeeper.
- Explore startup loans or lines of credit if needed.
- Set up payroll services and retirement plans for future staff.
Insurance Requirements:
- Medical malpractice insurance
- General liability insurance
- Workers’ compensation (if hiring)
💡Tip: A good starting point is the U.S. Small Business Administration webpage for knowing the requirements in your state and beginning the application process.
For additional assistance, you can work with a healthcare attorney and medical CPA
Step 3: Find the Right Location and Staff
Your physical space and your team have a major impact on the patient experience.
Choosing the Right Location:
- Always keep in mind patient convenience: parking, public transportation, and ADA accessibility.
- Evaluate local competition and patient density.
- Check zoning laws and medical office requirements.
- Tour multiple properties before committing to a lease.
Hiring the Right People:
- Front desk staff who are friendly, efficient, and HIPAA-trained.
- Medical assistants or nurses who enhance clinical efficiency.
- Billing specialists or partnerships with third-party services.
- IT and EHR support (especially for cybersecurity and compliance).
Set Up Equipment and Systems:
- Medical equipment and furniture
- Cyberattack-proof internet and phone systems
- HIPAA-compliant EHR/EMR platform
- Scheduling software and automated reminders
💡Tip: Your people and technology shape how patients feel in your care—invest here wisely.
Step 4: Get Credentialed and Start Accepting Insurance
Your physical space and your team have a major impact on the patient experience.
What is Credentialing?
Credentialing is the process of enrolling with insurance companies, verifying your qualifications, and negotiating reimbursement contracts.
How Can You Get Credentialed?
- Apply to major payers (Medicare, Medicaid, and private insurers like Aetna, Cigna, BCBS).
- Gather documents: medical license, DEA, malpractice history, board certification.
- Submit applications (can take 90+ days).
- Monitor status and follow up regularly.
Billing System Setup:
- Decide whether to bill in-house or outsource to a revenue cycle management company.
- Set up software for claim submission, denial management, and collections.
- Ensure fee schedules are aligned with your contracts.
💡Tip: Many practices wait too long to start credentialing. Begin the process 3–6 months before your target launch date.
Step 5: Build Your Brand and Attract Patients
Now it’s time to let the world know you’re open for business. Your marketing starts long before your first appointment.
Essentials for Building Your Brand:
- Professional Website with service pages, bios, patient forms, and contact info.
- Google Business Profile for local search visibility.
- Social Media Presence on platforms like LinkedIn, Facebook, and Instagram.
- Logo and Brand Style Guide for consistent visuals and messaging.
Patient Acquisition Strategies:
- Offer online booking for convenience.
- Use patient reviews and testimonials to build credibility.
- Run local SEO campaigns to rank on Google for “[your specialty] near me.”
- Network with referral sources (PCPs, specialists, hospitals).
💡Tip: Patients choose providers they trust—and your brand is how they get to know you.
Step 6: Retain Patients and Grow Your Practice
Gaining patients is one thing. Keeping them is the key to long-term success.
Best Practices for Retention:
- Provide timely follow-ups and communication.
- Use automated email/SMS reminders to reduce no-shows.
- Ask for feedback through surveys and online reviews.
Growth Tactics:
- Add new services (Ex. telemedicine, ancillary care).
- Host open house events at your practice and engage with local community events.
- Partner with employers or local organizations.
- Track Key Performance Indicators (no-show rate, patient satisfaction, revenue per visit).
💡Tip: Happy patients refer others and come back. That’s how thriving practices are built.
Looking for an Easier Way to Start and Grow?
Starting a private practice takes more than medical skill—it takes a strong business backbone. Understandably, the endless requirements may be overwhelming, but you don’t have to do it alone. Performance Medical Management supports physicians like you with:
All our services are 100% USA-based, meaning you will always have access to us when you need us–whether in person or online.
You focus on patients—we’ll handle the rest. And the best part? You keep your independence.
Ready to launch your private practice with confidence?
Contact Performance Medical Management today to learn how we can support your journey to independence.
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