From running wellness clinics to attending house calls, nurses worldwide continue to make a name for themselves in the healthcare sector by starting a private practice. According to research, approximately 25 percent of all nurses in the U.S. work in private practice. While opening up a private nursing clinic is an easy decision to make, your success will depend on finances, adequate skills, and motivation to help others, among other factors. Regardless, there will always be a steep learning curve when setting up a private practice. You can rest assured that with the right mindset and skills, you too can be your own boss and enjoy the many perks that come with entrepreneurship. So, if you’ve made up your mind, listed below are a few tips to help you get started.
Acquire further education in the nursing field
Nurses typically hold a BSN degree, which is a baseline requirement to practice. However, if you’re thinking about starting a private practice, consider obtaining further education and polishing your nursing skills. Doing so will also help you broaden your medical know-how and specialize in a niche to provide better services to patients.
So, assuming you already have a bachelor’s degree, opt for a master’s in nursing. You can turn to the internet if you don’t want to go the traditional way. An online MSN program will allow you to upskill in a more flexible, cost-effective manner while doing prep work for your startup. You won’t have to quit work to complete your credits. Also, you can choose to specialize in a niche of your calling, such as pediatrics, family care, etc.
Create a business plan
Like any business, a private nursing practice requires a business plan. Developing one will enable you to grow, operate, and structure your nursing business, hire staff, and secure funding.
However, creating a business plan will take time and a lot of research. So, it is advisable to start working on one at least two to three months before you intend to get your private practice up and running. According to the SBA (U.S. Small Business Administration), a typical business plan consists of nine sections. You can get more deets on these by visiting the website. Remember to incorporate them into your plan.
Acquire funding
From purchasing supplies, hiring employees, selecting a business, to everything in between, opening up a private nursing practice requires funding. That said, there are a few ways you can acquire money to get started. You can collect funds through your friends and family or invest your savings. Or you could take out a business loan through a credit union or a bank. Last but not least, you can opt for a small business grant to fund operating costs.
However, the type of funding option you select will depend on how much money you require. For instance, if you’re planning on running house calls, self-financing your startup might work. However, if you’re looking to hire multiple employees and offer a wide range of services in a small clinic, you may have to take out a bank loan. So choose accordingly.
Select a legal structure
Every business must be incorporated with the state and federal government. The legal business structure you select will have an impact on your operations and finances. So, depending on the location and size of your nursing practice, you can choose between a partnership model, LLC (limited liability company), sole proprietorship, or create a C-corporation. Each legal structure has varying tax liabilities. Hire a competent tax lawyer or advisor to navigate paperwork before deciding on one for your nursing practice.
Obtain licenses, permits, and registration
After deciding on a legal structure, the next step is to acquire the credentials necessary to set up and run your private nursing practice. The minimum requirement is to obtain a business registration and deferral tax ID number. Doing so will allow you to register your nursing practice with the IRS and use your tax ID number to apply for licenses and permits, open a business bank account, hire staff, and pay federal taxes. Also, remember to register your nursing practice as a legal entity with your local or state government to operate legally. It will help you manage litigation issues that may arise in the future.
Apply for malpractice insurance
According to evidence, nurse practitioners offer high-quality care. Therefore chances of experiencing a malpractice lawsuit are low. Still, it would be wise to purchase malpractice insurance as a backup. The average fee for a malpractice lawsuit defense can range from 20,000 to 40,000 dollars. Not to mention, the payout for malpractice injuries is anywhere from 200,000 to 320,000 dollars. Hence, getting insurance will protect your practice from heavy losses.
Conclusion
In most U.S. states, any nurse practitioner can open up a private practice. However, just because you can open one doesn’t mean you should. So, consider weighing the pros of opening one against the cons and then make a decision. That said, if you decide to do so, follow the tips mentioned above, and the entire process will become a lot smoother.
