A natural next step for an established clinician in private practice is to consider bringing on other professionals as part of their growth opportunity. Therapists may consider this option for a variety of reasons, including a desire to address their growing list of referrals, utilize office space more fully, or reinforce their brand. Moving to a group practice model is a process that is not for the faint of heart, so let’s take a look at some important things to consider before embarking on the process.
1. Do you wish to take on Independent Contractors or Employees?
This is a vital first question because it dictates how you go forward with the process. If you were to take on Independent Contractors (ICs) for example, your hiring process and formal contract would emphasize their defined commitment to the practice, payment schedule, and marketing or referral expectations that fall within IC guidelines at both the Federal and State levels. In contrast, if you were to go with an employee model, you would need to be prepared to pay salaries, maintain office space and supplies, and offer retirement or healthcare packages based on recommendations by your attorney and CPA for this model. By asking this question first as it applies to your vision for practice growth, you will be able to refine your plan of action when taking on professionals for hire.
2. Have you set up a business name with tax ID and group NPI?
Another piece to the puzzle of private practice growth is moving from a solo practitioner to a small business model. This includes having a business name and TAX ID form which to operate from, most likely established when you started your practice as a sole proprietor. A next step for group practice designation includes applying for a free group NPI which will link back to your business for billing and insurance paneling if that is part of your larger plan and working towards updating your records to reflect both TAX ID and NPI going forward.
3. Do you have plans to take insurance in your group practice?
Speaking of bigger plans, are you hoping to credential your new hires with insurance panels for the services you provide? Identifying the process of adding clinicians to your existing contracts for each insurance panel could impact your timeline for new hire on-boarding and adaptation. Some insurance panels may take 1-2 weeks to update their records with your new hire information whereas others may take longer, which could impact your launch date or growth opportunity overall if too many obstacles exist.
These are just three of many questions to consider when exploring if a group practice model is right for you. There are dozens of things to consider including office space, health insurance, contracts, fee schedule, staff, and billing needs. Lots of moving parts that feel rewarding to owners who have made the move to group practice. Consider investing in training, consultation, or group practice conferences to learn more about the pros and cons of group practice ownership and leadership as they fit with your future goals.