At a time when physicians are increasingly forgoing independence to become employed by hospitals or health systems, some doctors have become so dissatisfied with working for others that they've decided to return to private practice.
During the past three years, Harry Nelson, J.D., founder and managing partner of the Los Angeles law firm Nelson Hardiman LLP, has worked with about five physicians to exit employment from hospital-affiliated groups to return to private practice, compared to 35 to 40 "entrances" in the same period, he recently told Medical Economics.
But re-entering private practice is more complicated than simply buying back equipment and supplies and hanging a new sign. Here are some fundamental steps required to succeed at this daunting proposition:
- Define your business model. There are many variables to consider, including whether your new practice will be completely independent, part of a franchise, accept insurance, charge a membership fee or even take a hybrid approach, according to Medical Economics. Before settling on a model, do your research to determine what will and will not work in your area.
- Get your ducks in a row. Straighten out any potential legal matters upfront rather than risking an interruption when you're trying to launch a new business. In particular, ensure you understand how provisions of an employment contract, such as a noncompete, will affect new ventures, the article advises. Also investigate the ramifications of dropping insurance, being mindful that this area of the law is still somewhat in flux. Thirteen states have passed laws that say direct primary care is not insurance, for example, but the rules in many states are not clear, noted a post in Massachusetts' Commonhealth blog.
- Obtain financing. Will you need a bank loan, a side job or some type of extra income to sustain the business until it becomes profitable? Remember that if you plan to accept private insurance and Medicare, it can take up to six months after the paperwork is filed to begin receiving reimbursement, Medical Economics noted.
To learn more:
- read the article
- see the post