APTA

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Overview of 20 Step Plan for Opening Up a Private Practice

Following is the 20 Step Plan for opening up a Private Practice. This 20 Step Plan is a chronological timeline that is intended to be used as an overall guide during the process of opening a practice. While this timeline is not meant to be comprehensive and set in stone, it is intended to be customized to your own individual practice and unique situation.

Step	Action	How-to-Manual Chapter Reference/Other Resources
1	Make the decision to enter private practice Join the Private Practice Section – APTA Creat a timeline for the development of your practice	Entire Manual, especially Chapter 1
2	Develop and implement a business plan with the assistance of an attorney and an accountant Decide on and set up a business structure Set up your accounting books and system & record-keeping methods Decide on and locate an office for the practice Create a pro forma budget: revenue and expense projections Develop payer relationships; e.g. form contracts, policies and procedures, reimbursement, etc... Contact PPS Member Resource program	Chapters 1, 2, 3, 4, & 7 Appendices 2 & 4 How to Select an Attorney Tips for Writing a Business Plan To Lease or Not to Lease
3	Arrange for and acquire start-up capital for practice Establish a banking relationship Set up a line of credit, e.g. home equity loan Business start-up loan Apply for a small business loan with the Small Business Administration Anticipate 3-6 months operating expenses	Chapters 1 & 4 Resources for Start-up Funding
4	Apply for and obtain licenses and registration numbers State and local business license/registration Tax ID and Federal ID numbers Medicare and Medicaid provider numbers if needed Certificate of occupancy if needed and other registrations as needed	Chapter 5 Appendix 3 More information on licenses and registrations Federal ID number State physical therapists licensing regulations
5	Start early marketing of your practice to: Physicians and their staffs Payers, managed care organizations, and physical therapy networks Create practice logo, design, and order printed advertising material	Chapters 7 & 9
6	Finalize your practice’s location Negotiate lease agreement; attorney review Guesstimate of opening doors to patients Assess and research network considerations; do your due diligence	Chapters 2, 7, & 10
7	Plan your practice’s physical and clinical space Start improvements to space to meet your needs Order equipment and supplies Research and purchase billing software Plan and implement information systems	Chapters 2, 4, & 7 Finding the Right Billing Software
8	Verify that all registrations and licenses that were applied for have been received Medicare and Medicaid provider number State and/or local license & registration Tax and Federal ID numbers Other registrations	Chapters 4 & 5
9	Finalize the opening date of the practice Secure certificate of occupancy if needed	Chapter 2
10	Interview and hire staff Office; billing and information systems Clinical; PTs and PTAs if needed	Chapter 11
11	Create risk management plan and strategies Establish practice policies/procedures and compliance manual; HIPAA compliance, Medicare, employee handbook, billing policy Begin insurance inquiries; obtain information on insurer fee schedules, reimbursement and coverage policies	Chapter 10 Appendix 3 Become HIPAA compliant
12	Acquire printed materials and office forms Obtain office stationery, business cards, practice brochures Referral pads Insurance forms (commercially available) Create and print patient forms; e.g. registration (in-house or outsource)	Chapters 4 & 9
13	Continue to market practice to: Physician offices, payers, PT networks, etc... Hospitals Free-standing community medical clinics Nursing homes and assisted living facilities Neighborhood businesses; e.g. fitness centers, factories, manufacturing plants	Chapter 9 Marketing Tips and Resources
14	Buy appropriate insurance to cover the practice and clinical staff Professional liability for individual and practice (malpractice) General liability Workers' Compensation Other insurance as needed	Chapter 10 Appendix 3 PPS Endorsed Liability Insurance
15	Make sure all licenses, registrations, and provider numbers have been received	Chapter 5 Appendix 3
16	Place announcement of opening in local newspapers 2 weeks before opening doors	Chapter 9
17	Have a preliminary staff meeting at your office location Discuss opening day review certificate of occupancy Do a partial move-in Review staff expectations, compliance & policies and procedures, and employee training schedule; e.g. HIPAA compliance	Chapters 7 & 11 Policies & Procedures Manual
18	Move-in equipment Signage if appropriate Set-up office and clinical and/or treatment areas Test billing procedures and software, and other computer systems	Chapters 7 & 9 Appendix 3
19	Open the doors and enjoy being a practice owner!	Review entire How-to Manual
20	Continue to develop marketing strategies and adapt your business structure Hold an open-house for referral sources and the community within 90 days after opening your doors Continue to work on your budget Manage the accounts payable and receivable process up-close and personal; if outsourced, meet regularly with your billing service and accountant and ask questions!	Chapters 3, 6, 7, & 9 Appendix 5