5 Minute Read: A Guide to Starting a Practice
Starting your therapy practice may seem daunting; however, an abundance of online information is available to assist entrepreneurs in reaching this goal. Each business owner needs to research the city and state (and perhaps a county within that state) guidelines for beginning any new business. If you are an established practice and would like more information tailored to credentialing please read our blog post: 5 Minute Read: A Guide to Successfully Building a Therapy Clinic.
Decide on a business structure such as a DBA (Doing Business As), a partnership, a corporation, or Limited Liability Corporation (LLC). You can research the pros and cons of each of these online or consult an attorney or an accountant to help decide which best suits your goals. Even an individual practitioner who does not plan on hiring others should consider an LLC.
Big picture
Research demographics for the area where you would like to open your clinic. Do you want to start a pediatric practice, but the community is made up of citizens primarily over the age of 55? Probably not the best choice for your location. Is there a sizeable school-aged population, but the demographics indicate that most citizens live at or below the poverty level? Probably not a great spot for a largely private pay practice.
Decide on the best name for your business! You can search your state’s fictitious name records to see if your choice is available. Florida is Sunbiz, Texas is Comptroller of Public Accounts, etc., Every person (including an individual, as well as a business entity) is required to register their “fictitious name” or “dba” name with the state before conducting business. When thinking of a name, think carefully on how your patients or patient caregivers might search for your business online. Most will use a combination of geographically appropriate search terms in combination with the therapy type. For example, your business is located in downtown Main Street well known in the area for miles around. Main Street Speech Therapy is a pretty good name or a derivative thereof.
Marketing will be an ongoing effort to ensure that the business you’ve worked so hard to start can be successful. Visiting local physician offices is an excellent way to let them know you can treat their patients. You can bring the fun “swag” like pens or notepads with your logo on them to hand out to the referral coordinator or nurse who works with the doctor. Provide professionally printed business cards or a referral pad from your office containing your HIPAA Compliant Fax Number or email address where they can send referrals.
Here are 3 tips to maximize your impact on referring providers:
- Keep the referring provider constantly aware of the insurance plans and other payment programs you participate in.
- Keep them apprised of specialty training or certifications for particular diagnoses your therapists may have.
- Continue to tell them they are appreciated. Make these visits at least once per year to say “thank you for your continued trust in the needs of your patients” will help ensure that your business stays on their radar.
Dotting the I’s and Crossing the T’s
Apply for your Employer Identification Number (EIN) with the IRS.
You can do so by going to IRS.gov. Independent practitioners are not required to obtain an EIN. We recommend applying for an EIN even if you do not plan to hire others.
Apply for your Business Tax Receipt (BTR) in the county (or counties) where you plan to conduct business. Yes, even if you do not have a physical location, you will need a BTR for the address where your business is registered, typically your home address. Suppose you plan to open a brick-and-mortar location where patients come for treatment. In that case, your research will include any county zoning rules (is a therapy practice required to occupy an office zoned for medical use?) Your office location will require a city or county fire inspection to open. Once scheduled and completed, the city will issue your certificate of occupancy. Whether you own the location or lease it, you will want to obtain a general liability and property insurance policy to protect the contents of your office.
3rd party payers sometimes require that your facility become licensed or that you provide a “Certificate of Exemption from Facility Licensure.” Most therapist-owned practices are exempt from licensure- but make sure for your specific service areas.
Additional details to vet:
- decide on what type of equipment your practice will require. Home health businesses operate like clinics on wheels. The therapist totes along their equipment. The equipment needed will largely depend on the size and type of your practice and whether you intend to hire other therapists to work with you.
- Will you utilize an answering service to receive calls?
- What type of practice management software will you use for documentation, billing, and scheduling? You may choose to outsource your billing to devote more time to service delivery.
Every practice, even a sole proprietorship, should develop an intake packet that patients will complete before their initial visit. This packet might include forms to outline your attendance and payment policies, an informed consent authorizing you to bill the client’s insurance for services, and a privacy policy. You may want to include a patient medical history form as well. A great way to define your intake agreement is to look at others. Perform a search online for therapy clinics in any major city, and see what they have on their intake forms/ websites.
In Closing
We tried to pack as much into the 5-minute read as possible. We must be brief with the closing—so good luck and best wishes. Call us. We want to talk to you!
