Starting an Optometric Practice: Checklist Part 2
Three Part Checklist Series
Starting an optometry practice requires careful planning and execution. This three-part series will provide you an important framework for organizing your thoughts and plans for starting your own private practice.
Our expert teams of MBAs, CPAs and business consultants are trusted, experienced and knowledgeable in all aspects of practice start-up. We are ready to help you achieve a business that is not only profitable, solvent, and patient centered, but one that will provide you a lifetime of pride and financial rewards!
Let’s continue with Checklist Part 2 as a follow-up to Planning/Assessment and Finance/Funding.
Business Entity/Tax Status/Insurance Credentialing
- Determine a Business Structure and Tax Status: Decide whether to form a sole proprietorship, LLC, corporation, or partnership, as well as the ideal tax status to keep your IRS business tax obligations in check. Our expert consulting team is well-versed on the pros and cons on different business entity and tax options and can help you with this important step.
- Set Up a Tax ID (TIN) and Employee ID (EIN): Apply for an Employer Identification Number (EIN) and Tax Identification Number (TIN) with the IRS for tax purposes.
- Obtain Licenses & Permits: Ensure you have the necessary licenses to practice optometry in your state. This may include an optometry license, business license, and depending on the medications you prescribe, a controlled substances registration.
- Credentialing with Insurance Companies: Apply to become an in-network provider for vision and medical insurance plans. Understanding the complex steps involved in being paid appropriately for your work once you open your doors is paramount to your early revenue streams. We can guide your process and timeline.
Location, Space, Build-out
- Determine Best Location: Once you’ve evaluated the demand for optometry services in your target area, researched demographics, competitors, and community needs, it’s time to look for a suitable office space with high visibility, good foot traffic, access to parking and a lease rate you can afford. This is not an area for missteps. Williams Group will help you evaluate and determine your best option.
- Lease Negotiation: Negotiate the terms and conditions of your lease, including the rental rate, CAM, tenant concessions, renewal options, expansion options, as well as the lessee’s and the lessor’s on-going responsibilities.
- Office Layout & Design: Plan the layout and design for patient flow, exam rooms, waiting areas, optical and lab, contact lens area, staff workspaces. Your Capital Costs budget will dictate your contractor and building material expenditures for remodeling, adding plumbing, and tenant improvements.
- Equipment/Furnishings/Fixtures: Your Start-up Cost Analysis will also dictate your forecasted projections and purchases for your ophthalmic equipment. Exam chairs, slit lamps, phoropters, diagnostic instruments, optical displays, furniture, computer software and hardware are always top of mind. Ensure the office is aesthetically appealing and welcoming to patients with the perfect combination of budget-friendly furnishings, fixtures and inventory.
Technology / Business Systems
- Practice Management Software/ Electronic Health Records (EHR): Implement software to manage appointments, patient records, billing, insurance claims, and communication. Set up an EHR system that complies with HIPAA regulations.
- Optical Inventory Management: Your software system may also provide functionality to manage the inventory of your frame inventory, ophthalmic lenses, and contact lenses; patient jobs.
- Payment Methods / Billing System Setup: Set up a Point-of-Sale system for processing insurance, co-pays, and credit card payments. Organize billing for both private pay and insurance claims.
- Set Up Business Accounts: Open a separate business checking and savings account to manage finances. Your insurance payments will need a place to land.
- Bookkeeping Set up: Track your revenue and expenses with a proper bookkeeping system. Williams Group offers optometry-specific bookkeeping services with 24-7 access to your accounts and monthly management reports to stay on top of the trends in your business. Rather than spending Friday afternoons with practice debits and credits, choose to be with your patients and/or your family and friends.
- Payroll Setup: Set up a payroll system to ensure timely payment of salaries and withholdings. Williams Group payroll services provide consistent, timely and accurate payroll processing, even when you are away from the practice (vacations, holidays, etc.)
- Malpractice and Other Liability Insurance: Purchase professional liability (malpractice) insurance to protect against legal claims. General liability, property contents, and overhead insurance may be part of the equation. Williams Group can help you sort through these decisions.
By staying organized and dedicated to the process, you can lay a strong foundation for your new business and increase your chances of success. Look for our previously posted Checklist Part 1 and watch for Checklist Part 3 to follow soon. Meanwhile, connect with Williams Group for guidance as you begin your journey to private practice ownership!
Tammi Sufficool, MBA