Disclaimer: The content provided herein is intended for educational purposes only and does not constitute financial or legal advice. This content is not intended to create, and receipt of the launch guide does not constitute, an attorney-client relationship. While efforts have been made to ensure the accuracy of the information presented, it may not necessarily reflect the most current legal developments or regulations and does not provide a complete representation of all associated legal and compliance considerations for any given topic. Therefore, readers are encouraged to seek professional legal advice or consult with appropriate professionals regarding specific legal issues or concerns related to their individual circumstances.

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Starting your own medical practice? Exciting. Overwhelming. Maybe a little terrifying? You’re not alone. The transition from clinician to business owner comes with a learning curve, especially when it comes to financial planning. Because let’s be real, you didn’t go to med school to crunch numbers, but running a successful practice means getting comfortable with your financials.

Start with a Realistic Budget

You’ve got the vision, but do you have the numbers? A solid budget is your roadmap, it keeps you from overspending in the wrong areas and ensures you have enough cash flow to keep the lights on. Spoiler alert, there’s a link to free financial templates at the end of the Newsletter so hang in there!

What to include in your startup budget:

• Office Space & Buildout: Lease costs, renovations, furniture, medical equipment.

• Technology & Software: EMR, billing software, telehealth platforms.

• Staffing Costs: Salaries, benefits, payroll taxes.

• Insurance & Compliance: Malpractice insurance, liability coverage, credentialing fees.

• Marketing & Branding: Website, social media, signage, local advertising.

Pro Tip: Don’t forget working capital! Even with a strong launch, it takes time to get paid. Set aside at least 3–6 months of operating expenses to cover overhead while cash flow stabilizes.

Know Your Funding Options

Starting a practice isn’t cheap, and you may not have enough spare change lying around.

• Traditional Bank Loans: Often the most cost-effective but require a solid business plan and good credit.

• SBA Loans: Government-backed loans with lower interest rates and flexible terms.

• Private Investors: If you’re open to giving up some equity, angel investors or physician partnerships could provide capital.

• Equipment Financing: Leasing or financing medical equipment instead of purchasing upfront can free up cash.

Pro Tip: Get pre-approved for financing early, so you know exactly what you’re working with before signing any lease or purchase agreements.

Set Up Your Revenue Cycle Like a Pro

You can’t pay bills without cash flow. And cash flow? It depends on a strong revenue cycle process from day one.

Here’s what you need to nail down before seeing your first patient:

• Credentialing & Payer Enrollment: Don’t wait until opening day to get credentialed, this process can take months.

• Billing & Coding Strategy: Will you bill in-house or outsource? Make sure you have trained billing staff or a trusted RCM partner.

• Fee Schedules & Pricing: Research payer reimbursement rates and set your pricing accordingly.

Pro Tip: Monitor your Days in Accounts Receivable (A/R) from the start. If it takes 45+ days to get paid, it’s time to tighten up your billing process.

Financial planning for a new practice isn’t about perfection, it’s about preparation. Start with a realistic budget, secure your funding, optimize your revenue cycle, plan for taxes, and protect what you’re building.

Get these steps right, and you’ll set yourself up for not just survival, but long-term financial success.

Need help with financial planning for your practice? Check out these free financial templates.

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