Neurological disease is one of the severe conditions that can adversely affect your daily activities. Over 3 billion individuals worldwide suffer from a neurological condition, according to the World Health Organization (WHO). However, 1 in 5 adults in the United States reported having a mental disorder in 2021.
This scenario calls for an increasing demand for neurology practices. The neurology market may grow at a compound annual growth rate (CAGR) of 7.10% from its 2024 valuation of USD 67.3 billion to USD 94.8 billion by 2029.
The field of neurology is thriving and presents numerous growth prospects for providers. Hence, this is a golden chance for neurologists to establish their private practice.
We understand that establishing a private practice without prior business experience is not simple. For this reason, we have created a blog post detailing a step-by-step approach to establishing a practice and the challenges that may occur while running it.
Starting A Neurology Private Practice
Let’s talk about some crucial things you need to consider or plan for when starting a neurology practice before delving into potential challenges that could arise.
Develop A Business Plan
Treat your neurology practice like a profitable business. The first step in starting every business is a plan. Start by creating an executive summary, which will serve as the foundation for your business strategy.
This approach will involve choosing marketing strategies, creating a realistic timeline, and budgeting for costs. Business planning helps you think through everything your practice will need methodically.
Arrange Your Finances
The second step in any business planning is financing. How will you finance your practice? Or what if you run out of cash? Starting with personal savings or a loan from friends or family can provide the first cash for a private practice.
Another option is to apply for business loans from reputable financial institutions. You could also apply for grants or look for investors. However, remember that obtaining capital should not jeopardize long-term viability and should align with your business plan.
Pick Practice’s Location
Next, consider the facilities you will need. How many exam rooms are you going to require? Does your on-site lab require space?
Consider the costs of adapting a place to match your demands. Facilities must align with patient conditions. For example, rooms closest to the seating area must be fixed for patients with limited mobility.
File For Licensing
Consult with your state medical board or a lawyer with experience in medical licensing to ensure you comply with the rules in your area. Your practice must meet the local licensing criteria. This step will allow you to register your practice in compliance with the regulations and freely operate the practice.
Challenges That May Occur
The process of starting a new practice is exciting and full of potential. But there are always thorns with roses, so even if there are opportunities to begin your professional journey, you will face challenges. Don’t worry, though, since we will go over some common problems every private practice encounters and how they handle them.
Proper Staffing
Your team is the backbone of your practice. Indeed, assembling a competent team for your practice is a challenge, but it can make you stand out in the complex healthcare environment.
While hiring your team, remember to create a correct combination of nurses, other neurologists, and administrative personnel. It is essential for each member to substantially contribute to both patient care and the entire patient experience in today’s fiercely competitive industry. This step can ensure that your practice is ready to meet present and future challenges.
Administrative Burden
Administrative burden impacts the efficiency of neurology practices. Practices invest a significant amount of time and money in compliance due to the complexity of evolving healthcare laws. Neurologists, on average, spend 18 hours a week on paperwork and administration. Prior authorizations, billing and coding complexity, and patient record management add layers of administrative labor that can lead to stress and exhaustion.
So, you need proven technologies and well-developed systems to streamline and automate workflows.
Regulatory Compliance
The healthcare industry has strict rules to safeguard patient safety and privacy in the healthcare industry. For new neurology practices, navigating these regulations can oftentimes be too much to handle.
Several rules must be strictly followed, from state-specific healthcare laws to HIPAA compliance. Non-compliance can result in severe penalties and damage your practice’s reputation. Therefore, it is imperative to stay abreast of legislative developments and implement procedures that ensure full compliance.
How Can You Overcome These Challenges?
Various ways can help you overcome these challenges, such as training your staff for upcoming technological developments or preparing them beforehand for new regulations.
Another way to reduce the administrative load is to use the most recent software that handles appointment scheduling, record keeping, and data maintenance, which reduces paperwork.
However, this will increase your expenses. Instead, your practice can outsource medical billing services without breaking the bank. These services include patient onboarding, denial management, and accurate reimbursement collection.
Summary
To put it briefly, you must develop a clear and practical business plan, secure capital, and obtain licenses before starting your neurology practice. However, the initial steps will not be easy. Your practice will face ongoing issues related to evolving technology and changing regulations. Outsourcing your billing duties, nonetheless, can help you deal with these difficulties.
