Opening a New Healthcare Practice or Business

Choosing a name and filing formation documents are only the first steps in starting a healthcare practice. Before you see your first patient, you may need to address business formation, ownership, contracts, HIPAA compliance, patient forms, credentialing, and other healthcare-specific legal requirements.

Jackson LLP works with physicians, nurse practitioners, therapists, mental health professionals, medical spa owners, and other healthcare professionals who are launching independent practices. We can identify the legal work you need to complete before opening and lay the right foundation from the start.

Legal Services for New Healthcare Practices

When Should You Hire a Healthcare Attorney?

Ideally, you should speak with a healthcare attorney before you begin taking steps to launch your practice. The order in which you establish your business, sign contracts, set up your website and patient forms, enroll with insurance plans, and begin seeing patients can affect your legal and compliance obligations.

Starting with the legal structure can also prevent problems later. For example, your profession and state may affect whether you can form an LLC, PLLC, professional corporation, or another type of entity. State law may also affect who can own the practice and how different healthcare professionals can work together.

Jackson LLP can identify which legal issues you need to address before you open and which can wait until your practice is operating.

One of our first steps will be to discuss whether you should create a corporate entity. Options include a limited liability company (LLC), a professional corporation (PC), various types of partnerships, and a few others. The right type of entity for you could depend on:

Your business goals
Your state
Your profession

Filing paperwork with the state is only the first step in forming an entity. Your practice also needs governing documents that establish how the business will operate, how ownership is structured, and how major decisions will be made.

Those documents will allow you to open a business bank account, maintain corporate formalities, and even set forth a practice succession plan.

If you are starting the practice with a partner, bringing together professionals with different licenses, or separating the clinical and administrative sides of the business, address those issues before the practice opens. Ownership restrictions, governance, compensation, and management arrangements can vary based on the professionals involved and the state where you practice.

For practices with multiple owners, we can also address the agreements and ownership structure that will govern the relationship between the owners.

New Practice Basics

The best time to address foundational legal issues is before you see your first patient. Depending on your practice, that may include:

Business formation and ownership
HIPAA policies and procedures
Patient intake forms and registration packets
Informed consent
Credentialing with Medicare, Medicaid, and/or private insurance companies
Employment and independent contractor agreements
Employee handbook and workplace policies
Website terms and conditions
Fraud, waste, and abuse compliance
Healthcare contracts
Telehealth compliance
Real estate and lease issues

Healthcare Compliance for New Practices

Healthcare compliance begins before your practice opens. The requirements that apply to you will depend on your profession, location, practice model, and whether you accept insurance.

HIPAA and Privacy: Your practice may need HIPAA policies and procedures, a risk analysis, business associate agreements, and processes for safeguarding protected health information and responding to issues involving it. State privacy laws and professional requirements may also apply.
Billing and Insurance: If you participate with Medicare, Medicaid, or commercial payors, your contracts and billing practices need to align with applicable requirements. You should also address credentialing and enrollment as part of the startup process.
Telehealth: If you plan to see patients remotely, your practice may have additional requirements involving licensure, patient relationships, privacy, prescribing, billing, and practice standards.
Good Faith Estimates: Practices that see uninsured or self-pay patients may have obligations under the No Surprises Act to provide Good Faith Estimates. Consider these requirements when creating your intake and billing processes.

What Does It Cost to Start a Healthcare Practice?

The legal work involved in opening a practice varies by profession, location, ownership structure, and the services you plan to offer. Jackson LLP offers flat-fee pricing for many startup projects, so you know the scope and cost before work begins. We start with a complimentary 15-minute consultation to discuss your plans and identify the legal work your practice may need. After the consultation, we provide a written quote.

Build a Team of Advisors

An attorney is usually only one of the advisors you need when starting a healthcare practice. You may also need an accountant, insurance broker, commercial real estate professional, website designer, or other business advisors.

Jackson LLP has developed a network of professionals who work with healthcare practice owners. If you need a recommendation in your area, ask us. When appropriate, we are happy to connect you with professionals we know and trust. We do not pay or accept payment for referrals.

Free Attorney Consultation

Frequently Asked Questions

When should I hire a healthcare attorney to start my practice?

Early. Ideally, you should speak with a healthcare attorney before you take major steps to launch the practice. Your business structure, ownership, contracts, compliance policies, patient forms, credentialing, and other startup tasks may need to be completed in a particular order based on your profession, state, and practice model.

Do I need an LLC or a PLLC to start a healthcare practice?

The appropriate business structure depends on your profession, state, ownership structure, and business goals. Healthcare professionals may have options that differ from those available to other business owners, so you should select the entity before filing formation documents.

What legal documents do I need before opening a healthcare practice?

The documents depend on how your practice operates. Common startup documents may include formation and governing documents, employment or independent contractor agreements, HIPAA policies, patient intake forms, informed consent documents, contracts, website terms, and other practice policies.

Do new healthcare practices need HIPAA policies?

Yes. HIPAA may apply when a practice is a covered entity or otherwise handles protected health information in ways covered by the law. A startup compliance program may include policies and procedures, a risk analysis, business associate agreements, workforce training, and breach response procedures.

Can Jackson LLP help if I am starting a practice with a partner?

Yes. Jackson LLP advises healthcare professionals forming practices with multiple owners on issues including ownership, governance, entity structure, contracts, and management arrangements. The appropriate structure depends on the professionals involved and applicable state law.

Can Jackson LLP help me start a practice if I plan to accept insurance or Medicare?

Yes. We advise new practices on credentialing, enrollment, billing, compliance, and the legal requirements that may apply to their insurance relationships. The requirements depend on the payors, services, and practice model.