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Sushirolls

Topped with salmon, avocado and tobiko
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Building a private practice, N of 1. Enjoy.

Month zero:
Grand plan was to use money from inpatient gig where independent contractor doing own billings to expedite insurance paneling, so all I had to do was switch over the practice address once opened. Long story short, not a quality place I wanted to associate my name with. Resigned. Had some seed money from that gig to start practice in addition to some savings. Able to find an acceptable, but not perfect office with 3 year lease, and had a bathroom – key to getting CLIA lab an onsite UDS. Delays in lease negotiations pushed entry into office from early month -1 to late 0. This was a hit, especially knowing the delays of insurance companies. Only some of the insurance companies I was paneled with and most were still in process. Spent 30K to get door open. Big items were ~4k for website, 8K in lease down payment and first months rent. ~5k for liability insurance full time occurrence based. Other expenses were board cert fees, CME, society memberships, business license, accountant, lawyer, etc. Office supplies were about 6K. I largely front loaded and excess of supplies like letter head, business cards, urine cups, etc, so as to not worry for the next 6-12 month. EMR I advance paid for year as opposed to monthly. Projected overhead for 12 month period is 57.8K. Put 6K of personal saving into business. Business balance 12K.

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Month One:
Extracted 4.5K for personal expenses. So many little things causing delays. Didn’t open to patients officially until half way through month. So much time spent on phone updating address with insurance plans, chasing down contracts to know fee schedules. Optimizing work flow, setting up the office, art work, or getting supplies I forgot. Lots of driving time. Saw 8 initial consultations. Improved work flow of making sure patients inputted their insurance information into EMR before proceeding. Trusting one patient, led to discovery it was dual Medicaid/medicare plan and not the traditional insurance. Essentially this was a free consult that didn’t get reimbursed. No reimbursements I believe from insurance companies. Sent letters to most PCPs in health systems and most independents for advertising. Started google ad too, but won’t do more than ~$100 for that. Business income -3.4K, balance 4.4K.
 
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Month Two:
Frustrating to have to talk with possible patients of better paying insurance to say I’m paneled, but practice address isn’t updated yet and they can take as long as they want, so you’ll likely be out of network for bill. Lost 5-10 possible patients this way, very few opted to schedule anyways. Got things dialed in with one insurance that to my surprise pays less than medicare, and since almost no one takes it locally I’m starting to be the go to for this Insurance. Glad to be getting some work, but some demoralization knowing that other job/work opportunities can easily exceed this rate. Then discover later in month another insurance company has even worse rates… Later in month finally getting better payor insurances paneled (but not with addresses) and the contracts with listed rates and are definitely in line with goals. Quiet month, 1-2 patients per week if that. Sent letters ~60-100 therapists in local area to advertise. Sent letters to one health system PCPs I hadn’t gotten around to. Business income -5.7K, balance 1.7K.
 
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Month Three:
Demoralization setting in. Reading too much on SDN about being full in 3-6 months, and definitely not on that trajectory. Reflecting on past higher income, is this worth the plummet to make this change? Should I scramble to lock in a secondary gig and all the issues that will unfold with that? Local large health system entity had a doc fill in 3 months. Patients referred from that entity say they are booked out 6 months, referrals on paper from them revealed all their psych are closed to new patients. Learned from one source, one small ARNP group has 3-4 week intake delay. One patient states searching for psychiatrist for over a year. Last two weeks of month, things looked a little better, potential billings could be on par for meeting overhead costs. However, still have to get it from insurance and get the out of pocket costs from patients. Feeling some hope return. Had to infuse 5k personal into business to keep afloat. Main practice goal is to be Neurstimulation with ECT & TMS, and filled in with some general psychiatry and addiction. Presently needing to pay the bills with general psychiatry and oddly, not exactly getting any Opioid UD patients. Local hospital is dragging its heels with creating the ECT privilege card. Last time I started an ECT practice with in a health system it took a year to get up and running, expecting the same again. But this place is moving so slow its hard to keep the ECT dream alive, but it’s a career passion and I’m not ready to give up yet. Won’t think of looking into TMS machine until business and ECT is stable.
Business income -7.7K, balance 4.7K
 
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LOL you need to relax bud and plot your revenue vs. time and stare at it. Then stare at it a few more times. It's clearly exponential. I would try a few new marketing strategies--that's what I would focus on. You'll fill in 3 months. The main reason that your expense is so high is because you decided to rent full time from the get go. Which is fine, if you want to grow into full size quickly. Even if you have a loss this year it'll be carried over next year to save taxes. Meanwhile it sounds like you have the personality to make it work IMO.

Obviously if you have a cash flow problem at home, you gotta take a part time gig, but the practice overall seems to be doing fine. Your patient flow is low for some reason which is unusual if you are paneled for multiple insurances and especially considering everyone else in town is full (so it seems). Figure that out. Talk to people and get a sense of what's going on. Are they even on insurance panels or do they only do cash? Try different things (i.e. avoid letters, ask for meetings). I suspect your practice is invisible to most patients seeking care--you need better internet marketing.

The one weird thing I figured out is that cash is not necessarily slower to fill compared to insurance in some situations: e.g. in a community where is a large presence of facility taking insurance, then you are competing with a sector of the market that needs insurance taking providers, and they'd rather go to Big System X than your clinic. Meanwhile, there are plenty of local docs who don't take any insurance and get a completely different sector of the market and seem to do fine.
 
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Nice description. I think your revenue will also depend on what codes you are using for billing. In house billing or outside? Which EMR did you go with? Looks like you are pretty comfortable at what you are using since you paid 12 months in advance.
 
Really appreciate the play by play on your experience with this. Its been very insightful even in just the first few months. To the extent you're able and willing, I'd like to hear how this continues for you going forward.
 
Very good work man! Thanks for taking the time to post this for us and hopefully it also serves as some motivation for you as well! Wish you the best of luck and I suspect you will succeed if you continue the grind. Cheers!
 
I intend to keep posting a monthly update in this sort of journal like fashion until things get routine/boring. I've lurked on SDN for years and found it to be a nice resource. I hope this will be a decent contribution for those considering their own journey into private practice.

Went with a larger space (higher overhead) due to goals of being ECT/Neurostim practice. Also difficult to land a small office with a bath room and another room to function as CLIA lab. Found I was also looking at 1200-1600sq foot spaces just to get a bathroom. Doing build out for an office lease is delayed by 4-5 months minimum due to shortage of labor. And those lease contracts were more expensive and for 5 year minimums. This is a long haul plan to insert my presence and get name out there for community at large. Wanting to do ECT, I need to take insurance and be broad paneled for this. If ECT and TMS weren't a goal for long term practice I would have definitely done a different practice set up.

Using outside billing company, but I do all the codes myself and submit super bill to them with demographics. 90792, 96127 (see other thread on that...), 80305-QW, lesser so 99204 or 99205. On occasion 99354. 81025-QW. Company has a rate less than 5% and gets lower with higher billings. Follows ups are heavier on the 99214. Not so much 90833, but its still early for that. I'll also use 99406. At some point I might even get back into and explore the billing related to 90880 - haven't yet. And fingers crossed some day again 90870.
 
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I intend to keep posting a monthly update in this sort of journal like fashion until things get routine/boring. I've lurked on SDN for years and found it to be a nice resource. I hope this will be a decent contribution for those considering their own journey into private practice.

Went with a larger space (higher overhead) due to goals of being ECT/Neurostim practice. Also difficult to land a small office with a bath room and another room to function as CLIA lab. Found I was also looking at 1200-1600sq foot spaces just to get a bathroom. Doing build out for an office lease is delayed by 4-5 months minimum due to shortage of labor. And those lease contracts were more expensive and for 5 year minimums. This is a long haul plan to insert my presence and get name out there for community at large. Wanting to do ECT, I need to take insurance and be broad paneled for this. If ECT and TMS weren't a goal for long term practice I would have definitely done a different practice set up.

Using outside billing company, but I do all the codes myself and submit super bill to them with demographics. 90792, 96127 (see other thread on that...), 80305-QW, lesser so 99204 or 99205. On occasion 99354. 81025-QW. Company has a rate less than 5% and gets lower with higher billings. Follows ups are heavier on the 99214. Not so much 90833, but its still early for that. I'll also use 99406. At some point I might even get back into and explore the billing related to 90880 - haven't yet. And fingers crossed some day again 90870.


My personal suggestion since i am fairly new to starting PP (2017) is really to aim for 1 day a week while keeping a side job. That way there is no pressure to fill your practice. can you get a side hustle for even weekends here and there so at worst you break even per month? Also, i like the monthly updates i am sure given what your describing in the area its just a matter of time that you will get slammed with patients based on the providers filling. Stay positive and know by end of 2019 you will have a roaring full time PP.
 
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Definitely on google and most permutations of google search my practice pops up. Side gigs and other things like AM methadone clinic, or IP weekends are all limited by The Boss. So interestingly, I have in the past, and am fully capable of burning the candle at both ends but for the time being I'm locked into this 100%. No further income or budget to devote to meeting PCPs face to face. ~80% of the PCPs in this area are affiliated with the big box shops. Working in my favor for them referring to me is they have not placed a priority on their psych mental health departments and all their existing people are full.
 
Definitely on google and most permutations of google search my practice pops up. Side gigs and other things like AM methadone clinic, or IP weekends are all limited by The Boss. So interestingly, I have in the past, and am fully capable of burning the candle at both ends but for the time being I'm locked into this 100%. No further income or budget to devote to meeting PCPs face to face. ~80% of the PCPs in this area are affiliated with the big box shops. Working in my favor for them referring to me is they have not placed a priority on their psych mental health departments and all their existing people are full.

I think you should physically show up to their offices.

Also do some SEO. When people look for help in your area online (esp. for some subspecialty), your thing should pop up.
 
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Definitely on google and most permutations of google search my practice pops up. Side gigs and other things like AM methadone clinic, or IP weekends are all limited by The Boss. So interestingly, I have in the past, and am fully capable of burning the candle at both ends but for the time being I'm locked into this 100%. No further income or budget to devote to meeting PCPs face to face. ~80% of the PCPs in this area are affiliated with the big box shops. Working in my favor for them referring to me is they have not placed a priority on their psych mental health departments and all their existing people are full.

Do you have some type of non compete limiting you to work in that area from previous employer? If your mobile look around and you will easily find gigs all over the area i am sure if your limited for a time frame to a certain radius due to some non compete
 
No non-compete. The Boss is spouse who prefers to enforce work/life balance. There are definitely inpatient weekend options, methadone clinic, part time psych in a residential rehab, etc. But for now, I oblige and stay the course with Plan A.

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Month Four:
Start of month, feel positive momentum of previous month is carrying through with getting 4-6 consults per week, and now 3-5 follow ups per week. Weekly potential to meet overhead is looking better. Starting to get more of better paying insurance patients calling in and getting scheduled, and all addresses are now completely updated with insurance companies. Definitely like Electronic Fund Transfer from insurance companies. Only one company is dragging heals on getting me paneled. Troubles with all the numerous online portals and passwords and chasing down EOB forms. Realizing secretary work is about the same or up to 2x the amount spent in face to face encounters. Likely need to hire a secretary /receptionist to allow for greater clinical productivity. But uncertainty exists when only in week three of meeting overhead, when do I pull the trigger on this larger expense? Then there is the time involved with understanding pay roll, interviews, job descriptions, contract, etc. Currently my work flow, I can’t do more than 2 consults in a day. Do I wait until meeting overhead is locked in consistently through the whole month? Or do I aim for digging out of the -7.7K business hole? Still getting people in within 1 business day, or at worst 3 business days.

Using Luminello is fantastic for patient interactions, but some patients are not tech or computer savy. Lost a few potential clients due to apprehension about putting their info online, or not having ease of simply getting an appointment over the phone, others love it. Have learned through some experiences that with no secretarial support I cannot take on people who are unable to navigate this internet platform or don’t want to. Phone call interactions with insurance company is not about NPI number. Its all about Tax ID number. I suspect I’ll be able to recite that in my sleep soon.

Sentiments early in this month: I’m still embracing the big picture. I AM LIVING THE DREAM. Even if this fails, I can say I tried, and I gave it a go. I’m delighted that I am the true boss. No pointless weekly or monthly admin meetings. No need to be concerned about Meaningful Use Criteria, or MIPS, or Med Dir annual reviews, or office politics. My schedule is mine. Personal life things XYZ popped up, and I’ve had flexibility to block time for it, no questions asked. No forms to fill out, no suit to approve it. *done*. No forms for CME expenses or paragraphs to write to justify the reason for CME, or being disgruntled if I use in excess of allotment. *presto* CME is just another business expense at my discretion. I want or need to spend 90-120 minutes on a consult? I can and I do. I’m not playing the wRVU game anymore. Its fulfilling to know the work I do, I get 100% of the fruits, no one is skimming off the top [except contracted insurance rates…]. No inpatient call … don’t get me going on that topic. At times I wish I did this right out of residency, but I can’t discount the things I learned about billing, RVUs, setting up an ECT practice, CPT codes, nuances of state commitment laws, and even the hardening of medical politics related to poor job choices or simply job contracts. Fingers are crossed for viability.

Then week two comes the ouch. Just learned local hospital health system is willing to grant psych privileges at a hospital without a psych unit, but don’t want to proceed with adding ECT to their privilege card. This hurts. My website and grand business plan centers around an ECT anchor for being a neurostimulation practice. What do I do now? I partly don’t believe hospitals can do that… but in this era of health systems they do take great liberty and disregard the essence of what hospital bylaws are/were and do what they want. Can I fight this? Should I? Maybe keeping things really simple as a small med check practice is best. Ouch. ECT cannot be performed at ambulatory surgery centers because CMS didn’t add it to list of approved procedures for these facilities. The ISEN-ECT society has applied pressure with APA, but they aren’t exactly caring. Good options are quite limited for keeping ECT alive right now…

Following week, childcare implodes, and sickness moves thru the whole home. Barely did any work this week, just maintenance of fax, phone reviews, etc. Need the childcare STAT on home front, to get back to work. Because I’m more of the flex person, I’m home. Did review EOB statements of bills not paid, got some answers I kicked back to the billing company to fix and resubmit. Emotions of ECT end are cooling off and able to think more objectively. Decided to proceed with getting the privileges at that hospital (and thankfully the back-up doctor is onboard too) and simply wait out a year to test the waters and push for it again. Paid the hospital fees may as well get our monies worth. Frustrating to have this set back or end, knowing part of my business plan selected this office space in anticipation of the future need and the overall website & practice name, too. So I’m paying for a heavier lease than what I truly need now. Have ~2.25 years to reflect on changing office location, so no rush for better or worse.

Got childcare end of month. Billing company didn’t pay attention to my CLIA lab number I sent them months ago, and now bills for some medicare patients are incomplete without payment for the UDS. Then I noticed randomly some EOB statements had different facility codes. I looked them up, and some have me listed as an inpatient facility! Quickly sent email to billing company, and they are doing a review. And some BC/BS bills were sent to the wrong main servicer and not my local servicer, so I had to point out that error. Hesitant to switch as their rates are good, and with current low volume have even cut me some slack on their fees. They have now resubmitted most of the bills with the corrections. Additional time will now be spent staying on top of all these EOBs. Lovely.

Going to meet with possible secretary early in month 5. Reached out to lone CL doc at the hospital for ECT, learned their was some turn over in admin/suits there. ECT dream might still live. What a roller coaster. Thought its been dead twice before…
Business income -9.7K, balance 2.9K
 
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I'm sorry: can you explain the last line of your post? Bussiness income -9.7k? balance (this assume is the overall cash balance) 2.9k?

What is the actual revenue, expense, net income this month? You are not paying yourself a salary I assume?
 
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That is reflective of overall practice from month 1-4. I've infused personal equity into business to keep it a float, but expenses are outpacing practice income. So, -9.7K, and the bank account reflects a positive balance of 2.9K from those equity infusions.

Last month specifically was 4K income, 6k expenses, no income to myself. Accountant and computer supplies for future receptionist were the atypical expenses for month. I've not paid myself anything for 2019.

I use estimates of $180/hr, and 6 weeks vacation.
~8hrs of traditional clinic time per week should meet current overhead defined as 60min consults, 30min follow ups. (I actually do 90min consults)
~16hrs of traditional clinic time per week should meet business and personal overhead (I start paying myself).
~30hrs of traditional clinic time per week should meet business and personal overhead, and putting spending money in my pocket while also exceeding standard 401k retirement packages but no where near past take home/income (paying all my bills and feeling content).
~30hrs+ means more change in my pocket but at expense of work life balance (The Boss might not let me go here and my career is currently in 2nd tier category for family purposes)
 
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i thought opening a psych practice was supposed to be simple since you’d be flooded with patients and making bank..guess not
 
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This is a sample size of 1. So many variables that dictate the flow. There are things I am doing right, things I am doing wrong. There are others on here with much different experiences.
Perhaps I should have hired a secretary from day one?
Perhaps I should have dropped the ECT dream from day one, and opted for simple small lease else where. I would be in profit if I had.
Did I really need a website? Do I really need an EMR? Perhaps a paper based cash practice would have been wiser?
Perhaps I should be doing more 90833?
Last month relatively wasn't that bad when considering I basically didn't work for 2 weeks, and spent more than a 1k on getting another computer/tech setup for a receptionist. Cheaper lap top, quality scanner, large monitor, USB docking station plug port, printer, key board, mouse, microsoft package, etc
Perhaps I should try to get a partner now rather than later to reduce office overhead?

This is just my journey. Every one else's journey in private practice will be different. Currently I have about ~35 patients following for ongoing care.

In summary like those cheesy credit card commercials, cost of enjoying going to work every day? PRICELESS.
 
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This is a sample size of 1. So many variables that dictate the flow. There are things I am doing right, things I am doing wrong. There are others on here with much different experiences.

How many hours have you filled?


Perhaps I should have hired a secretary from day one?

I doubt it.

Perhaps I should have dropped the ECT dream from day one, and opted for simple small lease else where. I would be in profit if I had.

Did I really need a website? Do I really need an EMR? Perhaps a paper based cash practice would have been wiser?

ABSOLUTELY. Do this now. You should've done this yesterday.

Perhaps I should be doing more 90833?
YES, ALWAYS BILL 90833.

Perhaps I should try to get a partner now rather than later to reduce office overhead?
Still confused. What is the biggest overhead?
 
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Lease
30150​
Lease NNN component
9222.84​
Luminello
1000​
business phones
1560​
after hours on call cell phone
36​
fax
120​
Website upkeep
720​
Online accountant program
260.12​
Credit Card Processing
156​
Billing company
5940​
Liability Insurance
5000​
Business License
29​
CLIA License
150​
Accountant
1080​
Medical license
443​
Building Insurance
637​
Website
15​
UPS mailbox
230​
Med society or Board
175​
Med society or Board
Med society or Board
395​
Med society or Board
Med society or Board
560​
 
Lease
30150​
Lease NNN component
9222.84​
Luminello
1000​
business phones
1560​
after hours on call cell phone
36​
fax
120​
Website upkeep
720​
Online accountant program
260.12​
Credit Card Processing
156​
Billing company
5940​
Liability Insurance
5000​
Business License
29​
CLIA License
150​
Accountant
1080​
Medical license
443​
Building Insurance
637​
Website
15​
UPS mailbox
230​
Med society or Board
175​
Med society or Board
Med society or Board
395​
Med society or Board
Med society or Board
560​

This is a yearly fixed expense sheet, correct? 39k for rent seems really high. Other stuff looks reasonable.
Still, with 45k a year of business expenses, I fail to see how you can get to -9k a MONTH in your accounting...????
 
This is a yearly fixed expense sheet, correct? 39k for rent seems really high. Other stuff looks reasonable.
Still, with 45k a year of business expenses, I fail to see how you can get to -9k a MONTH in your accounting...????

I think he means net revenue to date, not per month.
 
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I think he means net revenue to date, not per month.


The numbers are hard to understand. I want a tally of:

1. top line revenue to date
2. expense to date
3. bottom line income to date (presumably just 1-2, + other fluff) --> This is essentially EBITA
(then there's like income tax/other taxes etc etc) -> "net income"

I want to see the actual top-line revenue growth number. The bottom line number matters less because you might lose money in your first year if you count owners equity. Alternatively, if you can post 1) the number of steady patients as a function of time. This will allow you to estimate how long it'll take to fill the practice. How much are you getting per 99213+90833? If I'm reading your numbers correctly, you grew from 0 to 4k a month in 3 months? This means that you'll get to 16k a month in a year? This means in a year you'll have roughly 20 visits of 99213+90833 per week. Am I doing your math right? 20 visits a week = 10 hours is a half time job (or less than a half time. it's actually technically like 0.3FTE) dude. Rent out your office the other half time if you are planning on filling only 20 visits a week for at least 2 years. If not, your issues are mainly on the growth size. I would figure out how other doctors are marketing themselves in the community.
 
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-From January 1st to today, Total revenue is 7.5k. Total expenses are 17.3k. This is for 2019 and just this outpatient practice. Therefore, no income for me so far.
-There is so much variability in payors ranging from potential of +400/hr to a low of 120/hr. One low paying is ~$110 for 99213+90833. Another could be ~$280 for the combo.
-My conservative estimate I use for projections is the $180/hr (so $90 for follow up, $180 for consult)
-I only document the 90833 if the time and therapy modality were truly spent. Some patients truly just came in for a quick med check and are in remission with 3mo follow ups.
-Yes the overhead is fairly fixed. To sublease the contract has a very laborious process that the landlord is intricately involved with for any possible subleases. Had one doc who was interested, but doesn't want to make the private practice leap unless a solid side gig is in place.
-Yes, I grew from 0K income in month 1 to 4K by month 3.5. There is also the billing delay of insurance submission, to getting EOB, to getting patients to pay for their out of pocket expense.
-Its difficult to count steady patients, when some are more severe with SI concerns warranting closer follow up. Others have stabilized and are on 3 month followup. I won't do longer than 3 months out.
-Yes, 20 follow up visits per week would be equal to 10 hours clinical time (30 min slots) for how I do the math.

I'm not worried about marketing. I am more concerned about converting the calls/inquiries I do get into actual consults, this is my target area. A receptionist will assist in this greatly. I know of one who has years of mental health experience, very personable, and I'm really hoping to make it happen.

-I am quite confident as of today to be at 30hrs of clinical time by the end of 2019.
-I suspect with progressing time my real hourly rate when averaged is probably higher than $180/hr, but for my planning/budgeting I use a very conservative number.
 
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-I am quite confident as of today to be at 30hrs of clinical time by the end of 2019.
-I suspect with progressing time my real hourly rate when averaged is probably higher than $180/hr, but for my planning/budgeting I use a very conservative number.


Ok great this is really helpful. I have one suggestion which is if you don’t need a front desk you can hire a virtual admin from an agency, which cuts down your overhead because it’s pure 1099 and part time. I think you’ll be fine. This is a great thread and I think a lot of people would find it helpful.
 
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You don’t have a secretary? So you are returning all voicemails about scheduling?
Yes, I return phone calls. But more than half of inquiries are actually electronically thru Luminello EMR. Many of those inquiries I don't even contact by phone as scheduling and intake questionnaires are all done electronically. A chunk of my phone calls are more in the Social Work capacity, pointing people in the right direction. Uncompensated time but I feel its the right thing to do, especially when most patients don't know where or how to enter the system - further compounded by not knowing the differences of ARNP/MD/DO or Psychology/Psychiatry/Therapist/Etc.

My residency program back in the day had us 100% manage all the paperwork side of things, and you sink or swim with it and like riding a bicycyle it comes back to you and you just do it. But now it is truly eating into clinical time, and all the other hats I'm wearing.
 
Ok great this is really helpful. I have one suggestion which is if you don’t need a front desk you can hire a virtual admin from an agency, which cuts down your overhead because it’s pure 1099 and part time. I think you’ll be fine. This is a great thread and I think a lot of people would find it helpful.
You are absolutely right the virtual admin and 1099 is the superior choice for the bottom line. If I can't land this receptionist who I know who has the experience and proven skill set I may consider this route. Con's of virtual admin is they can't scan in documents or get real time signatures on consents - and that means I'm still doing more clerical work than I prefer. With current EMR I do have electronic consents, electronic bill payment, but for various reasons things end up back in the analog paper world sometimes, and having a real time secretary can expedite the digitization of everything.
 
You don’t have a secretary? So you are returning all voicemails about scheduling?
My psychologist (not psychiatrist) has this really nice web service called SimplePractice. It just shows all available appointments. I just pick which one I want. There's no secretary. Well, I guess maybe I'm the secretary. But it's so much nicer than the regular way of doing it. He phone number that you could call to leave a message, but there's no need to. The web-site also has a private messaging service which he used once to write me that an appointment I booked wasn't actually available. But it's actually very frictionless compared to calling. Probably more complicated for a psychiatrist since some appointments would be longer than others. With this they're all one hour blocks. I can't imagine it's a very expensive service because he's the frugal type.
 
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You are absolutely right the virtual admin and 1099 is the superior choice for the bottom line. If I can't land this receptionist who I know who has the experience and proven skill set I may consider this route. Con's of virtual admin is they can't scan in documents or get real time signatures on consents - and that means I'm still doing more clerical work than I prefer. With current EMR I do have electronic consents, electronic bill payment, but for various reasons things end up back in the analog paper world sometimes, and having a real time secretary can expedite the digitization of everything.
How much are you looking to pay the receptionist and how much value do you expect to get from having one? How many hours of your time per week will the receptionist be saving once they're properly trained? How much supervision will you put into the receptionist's role until you're really confident they're doing everything right? Hrs/week you're currently doing clerical work? Will the receptionist be able to handle the SW questions?
 
Yes, I return phone calls. But more than half of inquiries are actually electronically thru Luminello EMR. Many of those inquiries I don't even contact by phone as scheduling and intake questionnaires are all done electronically. A chunk of my phone calls are more in the Social Work capacity, pointing people in the right direction. Uncompensated time but I feel its the right thing to do, especially when most patients don't know where or how to enter the system - further compounded by not knowing the differences of ARNP/MD/DO or Psychology/Psychiatry/Therapist/Etc.

My residency program back in the day had us 100% manage all the paperwork side of things, and you sink or swim with it and like riding a bicycyle it comes back to you and you just do it. But now it is truly eating into clinical time, and all the other hats I'm wearing.

I’d hire a good admin yesterday. A good admin will make your life more enjoyable and will pull in more patients through initially answering calls and returning calls faster. They’ll also “sell” the practice, often better than we would.

I’m relatively young, and I don’t particularly like scheduling online. I want to talk to someone and ask a few questions. If I don’t have a specific referral, I’ll start calling everyone in the region. The first doc with reasonable availability, polite staff, and understandable web presence will get my business. Once I’m happy with an appointment, odds are other doctors have lost me as I won’t return calls to re-evaluate my decision.
 
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You are absolutely right the virtual admin and 1099 is the superior choice for the bottom line. If I can't land this receptionist who I know who has the experience and proven skill set I may consider this route. Con's of virtual admin is they can't scan in documents or get real time signatures on consents - and that means I'm still doing more clerical work than I prefer. With current EMR I do have electronic consents, electronic bill payment, but for various reasons things end up back in the analog paper world sometimes, and having a real time secretary can expedite the digitization of everything.

To cut down on my admin burden (I don't have a secretary), I use an auto-attendant feature set up the following way.

Welcome to the office of Dr. ....If emergency...Listen carefuly to following options. (press)

1. Existing patients
i. Schedule change appt >> VM
ii. Medication refills >> VM
iii. Urgent matter >>>> PHONE WILL RING
iv. Non-urgent matter >> VM
2. If you'd like to become a new patient of the practice
i. Due to high call volume, new appointment requests are only accepted online.
3. Other inquiries >> VM
4. Hear this menu again

Basically, after each prompt, there are relevant directions for what info to leave a message with. However, when the phone DOES ring, I know it's important.

I get 2 phone #s (mainline and extension) and virtual HIPAA-compliant electronic fax for about $50/month through 8x8.
 
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My psychologist (not psychiatrist) has this really nice web service called SimplePractice. It just shows all available appointments. I just pick which one I want. There's no secretary. Well, I guess maybe I'm the secretary. But it's so much nicer than the regular way of doing it. He phone number that you could call to leave a message, but there's no need to. The web-site also has a private messaging service which he used once to write me that an appointment I booked wasn't actually available. But it's actually very frictionless compared to calling. Probably more complicated for a psychiatrist since some appointments would be longer than others. With this they're all one hour blocks. I can't imagine it's a very expensive service because he's the frugal type.
The Luminello EMR has the option also. But I ran into an issue with one person who scheduled immediately that wasn't appropriate. So rather than having to cancel/disappointment I have it a bit more controlled on my end where I offer a few options. I'm waiting for a feature they have in their R&D that will allow new accounts to start with a default of no scheduling, but then can be released later. Currently it defaults to on - so I have the whole feature off to avoid this. This system has ability to designate certain appointments as follow up, consults, or whatever and only the time slots you choose to be available for online booking will be seen. Has great potential.
 
I’d hire a good admin yesterday. A good admin will make your life more enjoyable and will pull in more patients through initially answering calls and returning calls faster. They’ll also “sell” the practice, often better than we would.
Agreed, this was my realization, and further reinforced by excess clerical duties consuming time.
 
How much are you looking to pay the receptionist and how much value do you expect to get from having one? How many hours of your time per week will the receptionist be saving once they're properly trained? How much supervision will you put into the receptionist's role until you're really confident they're doing everything right? Hrs/week you're currently doing clerical work? Will the receptionist be able to handle the SW questions?
Not sure, this one I'm hoping to match current wages and that's all this person wants, too - I expect to have substantial value from this person. Benefits will be the SEP-IRA only. Presently this person only wants 20 hours. Will barely need any training. Probably 1-2 hours of supervision or less, this person will know enough to ask how certain things should be done. Will be quite confident this person knows what they are doing. This person will be able to handle SW questions as coming from a neighboring area with less psych/addiction resources and is used to telling people where their alternative options are.

If I'm currently doing 8 hrs clinical, I'm doing ~4-6 hrs extra documentation. Mostly because I document to excess compared to some, and most of my work is new consults, so I value having a quality intake note to start with. I spend at least another 20 hours doing scanning, faxing, phone calls, insurance calls, Supply runs (rarely now), cleaning toilet for UDS bathroom, chasing down EOBs, inputting EOBs for billing statements to patients for out of pocket costs, responding to electronic messages (existing patient surrogate to traditional phone call).
 
To cut down on my admin burden (I don't have a secretary), I use an auto-attendant feature set up the following way.

Welcome to the office of Dr. ....If emergency...Listen carefuly to following options. (press)

1. Existing patients
i. Schedule change appt >> VM
ii. Medication refills >> VM
iii. Urgent matter >>>> PHONE WILL RING
iv. Non-urgent matter >> VM
2. If you'd like to become a new patient of the practice
i. Due to high call volume, new appointment requests are only accepted online.
3. Other inquiries >> VM
4. Hear this menu again

Basically, after each prompt, there are relevant directions for what info to leave a message with. However, when the phone DOES ring, I know it's important.

I get 2 phone #s (mainline and extension) and virtual HIPAA-compliant electronic fax for about $50/month through 8x8.
I like 2i. I might use that, thank you.
Currently most communications for existing patients are online with the messaging system in the EMR, refills, meds, misc questions, appointment changes. I have a separate cell phone for 'on call' purposes after hours. Plan is if another doc I've somewhat talked to opened a practice, we would both give the number out to patients, and simply alternate weeks of who holds it. I've been called twice. Once for geriatric patient who didn't check with pharmacy first to see that Rx were already sent days ago, and another who got the flu but wondered if serotonin syndrome.
 
I think by the end of 2019 you will be full and doing fine. Your rent hurts me though. For example, I am in talks with a hospital system who is offering me a room to rent in an office full of PCPs with all utilities, phone line, and internet for 200 bucks a month 1 day a week. They do require you to be on medstaff and meet the docs through meetings.

Are you on any med staffs or attending lunches at the hospital?
 
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I think by the end of 2019 you will be full and doing fine. Your rent hurts me though. For example, I am in talks with a hospital system who is offering me a room to rent in an office full of PCPs with all utilities, phone line, and internet for 200 bucks a month 1 day a week. They do require you to be on medstaff and meet the docs through meetings.

Are you on any med staffs or attending lunches at the hospital?
Yeah, the lease rate is painful. Positively though it does convey professional feel, and is nice. Also is a prime central location for this local area. And I have got patients from the full reaches of the geography I intended. I had attempted to get a lease in a hospital medical building with this one local hospital but those talks went no where. The building managers said they would love to set me up, but the local hospital is domineering and doesn't really want to give up leases to outside medical groups. The lease manager actually said he unofficially needed their permission... I'm starting to see the effects of these large medical groups and hospitals have. Its disheartening the impact it has on health care as a whole in my opinion.

Prior to this office, I was on staff at for profit psych hospital. Dropped that as fast as I could. I am in process of picking up privileges at that same local hospital that doesn't have a psych unit. Only reason I'm doing that is to keep the hope alive for doing outpatient ECT at that facility. No desire to use it for C/L or ED work at all. That hospital locally doesn't have any outpatient psych providers, and I've already networked with their SW in their primary care clinic. She essentially already sends me their patients. I talk with her about once a week for various reasons. I'm getting a blend of health system referrals these days, therapist referrals, google/online self referrals, insurance referrals, and a pinch of 'word of mouth.' I figure in future posts in coming months I'll look back over my intakes and give a percentage post for folks.

You got a nice setup, that's for sure!
 
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Month 5

Random thoughts stray at times, was this the right time to do this? Perhaps grinding away at a local ‘big box’ entity is wiser. Maybe I should just anchor in 1-2 side gigs and make that be the practice? And many more of these ‘what if thoughts’… are actually occurring so much less. This practice is settling into my reality and a pinch of identity. More now when I have these thoughts, I pair it with feeling of “I can’t go back… never again” to traditional employment. I am living the dream and the sensation of freedom and independence is liberating. I enjoy seeing small things and thinking maybe I should do that? Or add this? Or buy this?’ and smiling knowing that it could happen and I CAN make it happen. It won’t get lost in a sea of bureaucracy or take 10 months for a work order just to be added to the list of work orders to be completed in 6 months. My building has heat that works (a previous job didn’t…). My building has AC that works (a previous job didn’t…). The office has a professional ambience (a previous job didn’t). I can buy a printer/scanner with snap of my finger (and not listen to a CEO tell me how I should feel privileged and excited as a kid at Christmas that I dared to request an additional tool to make me more efficient). The belief that I can do this job for the next 30 years is starting to return.

Positively the receptionist I reached out to is interested, and with past working history we have been quite open of pros/cons for each. Made an offer for 20hrs/week, she’ll be getting a pay raise from previous job and is on upper end of clerical work pay. However, she is a proven individual and knowing that is worth the cost. The last thing I need is poor performance or work place drama in a set up this small, or even staff turnover. Reached out to state LAI to get the check list of what I need to do for hiring. Reaching out to lawyer to field questions with them about how I do the official offer letter. Clerical work is consuming me and detracting from patient volume – I need this position filled last month! Signed the letter with plans to start July 1. (MISTAKE: Should have hired clerical staff much, much sooner. I suggest those reading this to do things yourself for first 3 months, but already have ball in motion to have some one start by month 3-4 at the very latest)

Have 1 insurance denial from medicare advantage and 1 from a lower payor – both are ridiculous and infuriating. I want to drop these insurance panels, but as long as the ECT dream lives I won’t. Privileges application goes to committee at end of Month 6 – we’ll see what happens. (Medicare advantage denial did eventually pay.) (After third phone call, finally discovered this is another Inpatient vs outpatient facility code error, so they are resubmitting it, so hopefully will get paid in coming weeks)

Definitely starting to see the rise in follow ups, like the tide at the ocean, you look away and then your feet are wet. Reassuring feeling to get the continuity and see results (or lack of) in treatment plans for patients. This is what outpatient is about! Have had a few patients end services for various reasons. Also, had my first no show for a follow up. Even had first angry “I won’t pay message” from patient feeling disappointed at end of consult I wouldn’t continue a certain controlled prescription. Picking up a few patients from local psychiatrists who have narrower insurance panels, so patients are excited to have an in-network doc.

Previous accountant dropped the ball on several things, and fees were in excess of what was originally discussed and other fees are more than double what competitors are charging. Positively have now reduced my long-term overhead by going with an experienced CPA who is transitioning from larger firm for solo operation. Continue to review my overhead and ways to reduce it. Connected to mobile check deposits now with bank, so that will hopefully save time on clerical errands. Eventually will circle back to handful of payors that are still sending paper EOB and checks, to see if possible, for EFT and electronic EOBs.

Discussed with medical liability insurance carrier with how they define part time. Positively, not by posted office hours, but by actual clinical work. So I have dropped down to part time, and reduced my liability insurance costs. (MISTAKE: for those reading this, I should have done this from the start, but didn’t down grade after I left the inpatient independent contractor gig. Overly optimistic in assuming things would be past 20hr part time mark by month 3-4).

Long story shortened a bit… my land lord didn’t pay attention to need of having office space certified with local government, as precondition to having the USPS give you keys for an actual mail box. I’ve been using a separate mailbox for some time. As such, Google won’t truly certify this address until I verify through their post card in the mail process, but oops, landlord is still jumpy through regs to get this place certified, and is paying all sorts of fees for their screw up. I had a simple Google Ad going, which anchored my web presence with all sorts of web search permutations. But when I stopped 2-3 weeks back my searchability also tanked. So I reinstated it, until this address fiasco is solved.

Clinical volume this final week tanked. Same time I extend offer to secretary. Uneasiness of knowing a week without hitting overhead bench mark has pulled down the enthusiasm of feeling like I truly hit the overhead bench mark. Billing resubmits seemed to have mostly worked their way thru with the repeat EOBs and a couple positive changes for both patient and myself, but good to know that headache is resolving. Medicare isn’t paying on my UDS claims. Confusing as can be when I have a certified CLIA lab certificate, and billing company hasn’t got me much of answer yet as to what the issue is. Might have to write off those few unpaid UDS bills from Medicare.

Luminello EMR had some updates at end of month I’ve been waiting for. So excited! Never felt this way about Epic updates in previous jobs, but the small, simple quaint feel of this EMR, I’m actually excited. One of which is new charts, however they are created, can now have a customized setting for access. In other words I can wait to send a message to patients that online scheduling is available to them once appropriate, and now I’m fully integrated with the online schedule feature.

I’ve done ketamine infusions during residency. Re-considering this service line. Liability insurance company will cover this additional service, too. Exploring discussions of a joint venture with an anesthesiologist next month, or may just go solo with this, or leave it for something to consider another day.

Year-to-date Business Income -7.9K, balance 4.5K
 
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Month 5

Random thoughts stray at times, was this the right time to do this? Perhaps grinding away at a local ‘big box’ entity is wiser. Maybe I should just anchor in 1-2 side gigs and make that be the practice? And many more of these ‘what if thoughts’… are actually occurring so much less. This practice is settling into my reality and a pinch of identity. More now when I have these thoughts, I pair it with feeling of “I can’t go back… never again” to traditional employment. I am living the dream and the sensation of freedom and independence is liberating. I enjoy seeing small things and thinking maybe I should do that? Or add this? Or buy this?’ and smiling knowing that it could happen and I CAN make it happen. It won’t get lost in a sea of bureaucracy or take 10 months for a work order just to be added to the list of work orders to be completed in 6 months. My building has heat that works (a previous job didn’t…). My building has AC that works (a previous job didn’t…). The office has a professional ambience (a previous job didn’t). I can buy a printer/scanner with snap of my finger (and not listen to a CEO tell me how I should feel privileged and excited as a kid at Christmas that I dared to request an additional tool to make me more efficient). The belief that I can do this job for the next 30 years is starting to return.

Positively the receptionist I reached out to is interested, and with past working history we have been quite open of pros/cons for each. Made an offer for 20hrs/week, she’ll be getting a pay raise from previous job and is on upper end of clerical work pay. However, she is a proven individual and knowing that is worth the cost. The last thing I need is poor performance or work place drama in a set up this small, or even staff turnover. Reached out to state LAI to get the check list of what I need to do for hiring. Reaching out to lawyer to field questions with them about how I do the official offer letter. Clerical work is consuming me and detracting from patient volume – I need this position filled last month! Signed the letter with plans to start July 1. (MISTAKE: Should have hired clerical staff much, much sooner. I suggest those reading this to do things yourself for first 3 months, but already have ball in motion to have some one start by month 3-4 at the very latest)

Have 1 insurance denial from medicare advantage and 1 from a lower payor – both are ridiculous and infuriating. I want to drop these insurance panels, but as long as the ECT dream lives I won’t. Privileges application goes to committee at end of Month 6 – we’ll see what happens. (Medicare advantage denial did eventually pay.) (After third phone call, finally discovered this is another Inpatient vs outpatient facility code error, so they are resubmitting it, so hopefully will get paid in coming weeks)

Definitely starting to see the rise in follow ups, like the tide at the ocean, you look away and then your feet are wet. Reassuring feeling to get the continuity and see results (or lack of) in treatment plans for patients. This is what outpatient is about! Have had a few patients end services for various reasons. Also, had my first no show for a follow up. Even had first angry “I won’t pay message” from patient feeling disappointed at end of consult I wouldn’t continue a certain controlled prescription. Picking up a few patients from local psychiatrists who have narrower insurance panels, so patients are excited to have an in-network doc.

Previous accountant dropped the ball on several things, and fees were in excess of what was originally discussed and other fees are more than double what competitors are charging. Positively have now reduced my long-term overhead by going with an experienced CPA who is transitioning from larger firm for solo operation. Continue to review my overhead and ways to reduce it. Connected to mobile check deposits now with bank, so that will hopefully save time on clerical errands. Eventually will circle back to handful of payors that are still sending paper EOB and checks, to see if possible, for EFT and electronic EOBs.

Discussed with medical liability insurance carrier with how they define part time. Positively, not by posted office hours, but by actual clinical work. So I have dropped down to part time, and reduced my liability insurance costs. (MISTAKE: for those reading this, I should have done this from the start, but didn’t down grade after I left the inpatient independent contractor gig. Overly optimistic in assuming things would be past 20hr part time mark by month 3-4).

Long story shortened a bit… my land lord didn’t pay attention to need of having office space certified with local government, as precondition to having the USPS give you keys for an actual mail box. I’ve been using a separate mailbox for some time. As such, Google won’t truly certify this address until I verify through their post card in the mail process, but oops, landlord is still jumpy through regs to get this place certified, and is paying all sorts of fees for their screw up. I had a simple Google Ad going, which anchored my web presence with all sorts of web search permutations. But when I stopped 2-3 weeks back my searchability also tanked. So I reinstated it, until this address fiasco is solved.

Clinical volume this final week tanked. Same time I extend offer to secretary. Uneasiness of knowing a week without hitting overhead bench mark has pulled down the enthusiasm of feeling like I truly hit the overhead bench mark. Billing resubmits seemed to have mostly worked their way thru with the repeat EOBs and a couple positive changes for both patient and myself, but good to know that headache is resolving. Medicare isn’t paying on my UDS claims. Confusing as can be when I have a certified CLIA lab certificate, and billing company hasn’t got me much of answer yet as to what the issue is. Might have to write off those few unpaid UDS bills from Medicare.

Luminello EMR had some updates at end of month I’ve been waiting for. So excited! Never felt this way about Epic updates in previous jobs, but the small, simple quaint feel of this EMR, I’m actually excited. One of which is new charts, however they are created, can now have a customized setting for access. In other words I can wait to send a message to patients that online scheduling is available to them once appropriate, and now I’m fully integrated with the online schedule feature.

I’ve done ketamine infusions during residency. Re-considering this service line. Liability insurance company will cover this additional service, too. Exploring discussions of a joint venture with an anesthesiologist next month, or may just go solo with this, or leave it for something to consider another day.

Year-to-date Business Income -7.9K, balance 4.5K


I think you are doing an awesome job. You just started with the bigger picture in mind. On your overhead breakdown what is lease NNN? Anyways, if you were thinking small picture and just rented a room 1 day a week instantly your cash flow would be a plus +2000 just on rent alone per month and that might make the "short term" numbers look better but you have just thought about big picture. I agree there is nothing like autonomy. I would rather make 100k and be my own boss then 2x-3x and be "told" what to do. There is value in autonomy far beyond $$ and the only ones who get it are people like you who have been employed or under someone and you can truly value what you have and are creating.

Lease30150
Lease NNN component9222.84
 
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NNN stands for triple net. There are many different lease structures out there. In short, triple net means I pay for more, and the land lord pays for less. The bigger medical office buildings, and nicer places in my local area are more likely to use this lease contract structure. It also means their initial contract is heavily skewed towards making you pay for anything that breaks. So glad I had the lawyer review it and do the haggling with their lawyer, and I got a more favorable contract in terms of if big things break who pays for it.

I did have a larger space, with cheaper lease, and better lease terms available in a slightly less professional building, with a less desirable location. The Boss encouraged me to pick this place for location, professional ambiance, and big picture goal of a ECT/TMS/Ketamine neurstimulation type practice. So, even though I kick myself at times with 20/20 hindsight The Boss reminds me the same decision would have been made and to keep focus on the future.

I also considered considered buying an old building, possibly in biking distance from my residence, but geographically would have limited myself to a much smaller patient coverage area, and not been conducive to the Neurostimulation practice dream. Perfect for simple general psych set up, and if this Plan A fails, I'm relocating for the lower lease costs and convenience of possible bicycle commute.
 
Even had first angry “I won’t pay message” from patient feeling disappointed at end of consult I wouldn’t continue a certain controlled prescription.
Considered payment before service as a rule for new consults?
Positively, not by posted office hours, but by actual clinical work. So I have dropped down to part time, and reduced my liability insurance costs.
Of course anything saved is good but how much are you really saving? I thought psych liability insurance was pretty cheap.
Have had a few patients end services for various reasons.
If you don't mind, why? I've lost a few to follow-up from my resident clinic but rarely find out why. Did they tell you?
 
Wishing you the best of luck, Sushirolls. Your dreams for autonomy and freedom resonate with me.

You got this!
 
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Considered payment before service as a rule for new consults?

Of course anything saved is good but how much are you really saving? I thought psych liability insurance was pretty cheap.

If you don't mind, why? I've lost a few to follow-up from my resident clinic but rarely find out why. Did they tell you?
I believe in the contracts with insurance I can't require pre payment for whole service in advance. I am getting better at collecting co-pays ahead of time, but some insurance flavors its difficult to ascertain what it is, and some it varies within the same company! This particular patient was medicare advantage, and until the EOB comes back its difficult to know what the out of pocket it is, unless they are still in a deductible window where you can estimate a 100% cost. What medicare pays, and how they pay can be somewhat predictable, but the medicare advantage is so much trickier, and some of them don't pay for 96127 when straight medicare does. But with it being now May/June, most people are past their deductible windows for medicare. Positively, I'm only shorted ~$30 for this scenario.

Saving ~$2400 for year, so yeah big picture compared to OB/GYN its nothing, but where I'm still climbing out of overhead and into maybe even being able to pay myself some income, every dollar counts. And the business imperative means counting every dollar. I won't be the perfect business person, and healthcare doesn't really lend to supporting that culture, but I will at least try to pursue it some.

One was heavily in the cannabis industry (and culture) and didn't like my no cannabis recommendations I suspect. Another opted not pursue ADHD treatment at this time after discussing with spouse, being shy to wanting to start meds I suspect, and probably realized couldn't quit the cannabis as easily as thought or just didn't want to quit the cannabis as required before starting a stimulant. Another was low acuity depression in 'young' person with first/second episode that could be manged by PCP, I suspect pt opted to take the treatment plan back to PCP to save money. I offer this to patients at time of consult, and suspect this patient realized it just before the follow up instead of at time of consult. It may be bad business to refer some patients back to PCP or do one time consults for some, but I intend to practice with philosophy "what would I want for my own family?" Makes it very easy to sleep at night when I keep it simple and practice that way. Another pt didn't like that I don't do disability paper work and wanted to hunt for anther psychiatrist for when their renewal paperwork came due (patient was capable of employment).
 
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Excellent read and I wish you much continued happiness and success. Forgive me if I missed it but I'm wondering why you didn't do an out of network practice. Am I wrong to think many of your struggles and the admin overload would be reduced if not dealing with insurance?
 
Great read and information about starting your own practice OP, thanks. Would love to see you keep it updated.
 
Excellent read and I wish you much continued happiness and success. Forgive me if I missed it but I'm wondering why you didn't do an out of network practice. Am I wrong to think many of your struggles and the admin overload would be reduced if not dealing with insurance?
Definitely considered an out of network practice. But an out-of-network cash practice is incompatible with my primary dream of a Neurostimulation practice. Full complement of ECT / TMS / Ketamine. I'm getting hit with bureaucracy, and politics on the ECT piece, but until I've exhausted all possibilities I won't give up the dream. I have had years of ECT clinical practice, and previously started a solo ECT service at a different hospital, so I know the ropes. Sadly there are just things outside of my control that may kill the ECT dream which is a shame for patients, the community, and my career fulfillment. This means I have the continue with broad insurance paneling, including Medicare should the ECT piece come together.

My original plans were to get ECT first, then TMS, then lastly add the ketamine service line. As of today, It may be going in reverse order to my dismay.
 
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