Steps to Launch Your Own Private Practice as a Nurse Practitioner

9 preparation steps to starting your own practice.

Starting your own private practice as a Nurse Practitioner (NP) is an exciting journey into professional independence, offering you the chance to shape your practice, focus on your areas of interest, and make decisions that directly impact patient care.

Step 1: Understand Your State’s Legal Requirements

Before you dive into the logistics of setting up your practice, it’s essential to understand the regulatory environment. Nurse Practitioners are regulated at the state level in the U.S., and regulations can vary significantly. More than half of states currently allow full practice authority (1), meaning NPs can evaluate patients, diagnose, interpret diagnostic tests, and prescribe medications independently. Other states require NPs to have a collaborative agreement with a physician. Check with your state's Board of Nursing and a healthcare attorney to understand the scope of practice and the legal requirements in your area.

Step 2: Obtain Necessary Certifications

Ensure that all your certifications are up to date. This includes your registered nurse (RN) and NP licenses, Basic Life Support (BLS), and Advanced Cardiac Life Support (ACLS) certifications, among others. If you're specializing, additional certifications might be necessary. In order to accept health insurance, you will also have to become credentialed with insurance providers (our guide for credentialing).

Step 3: Create a Business Plan

A well-thought-out business plan is crucial. It should include:

• Market Analysis: Understand your target market and the demand for NP services in your desired location.

• Services Offered: Detail the types of services and specialties you will offer.

• Financial Projections: Include startup costs, projected income, and a break-even analysis.

• Marketing Strategy: How will you attract and retain patients? What channels will you use for marketing?

• Operational Plan: Consider your staffing needs, hours of operation, and any partnerships with other healthcare providers.

Step 4: Secure Financing

Depending on your business plan, you may need significant funding to cover your startup costs, which can include leasing a space, purchasing equipment, and hiring staff. Options for funding include small business loans, private investors, or personal savings. Make sure you have a solid plan to manage your finances responsibly.

SBA loans typically offer competitive rates are government-backed and generally lower rates than traditional bank loans. U.S. Small Business Administration guarantees a portion of each loan, which reduces the risk for lenders and facilitates more favorable borrowing terms (2).

Step 5: Find a Suitable Location

Choose a location that is accessible and visible to your target demographic. Consider factors like competition, convenience for patients, proximity to other medical services, and the cost of real estate. Make sure the space complies with the Americans with Disabilities Act (ADA) and has enough room for all necessary equipment and privacy for patient consultations.

If you’re highly concerned about startup cost, consider renting a shared practice space. Shared spaces can be rented at more flexible terms and scale with you as your practice grows.  

Step 6: Obtain Licenses and Insurance

Apart from your medical and business licenses, you will need:

• Employer Identification Number (EIN) from the IRS for tax purposes.

• National Provider Identification (NPI) number required for healthcare providers.

• Liability insurance to protect against legal claims.

• General business insurance including property and workers' compensation.

• DEA License is required to administer, prescribe, or dispense controlled substances.

Step 7: Purchase Equipment and Software

This involves purchasing equipment, software, setting up electronic health records (EHR) systems, and creating patient intake procedures. Consider the workflow of your practice to ensure efficiency and patient privacy.

• Electronic medical record (EMR) software

• Practice management software

• Computers

• Accounting & billing service software

• Medical scribe software (some big AI innovations here!)

• Payments: POS system and credit card charger (like Square)

• Any other necessary medical equipment based on the services you offer

Step 8: Staff your practice

Consider hiring the following staff. It is common for practices to outsource some of these roles as the practice scales in size.

• Office manager

• Medical assistant

• Receptionist / general administrator

• Billing specialist

• IT support (or outsourced service)

• Janitorial staff (or outsourced service)

Step 9: Operate

Setup may be complete, but there’s more to be done.

• Market your practice – our guide to practice marketing coming soon

• Two weeks before launch – our guide to ensure a smooth start coming soon

• Practice management – our guide to running the industry’s most efficient small practice coming soon

Conclusion

Launching your own practice as a Nurse Practitioner is challenging but highly rewarding. It provides an opportunity to deliver personalized care and build close relationships with patients. With careful planning and dedication, your private practice can be both a professional and personal achievement.

Footnotes:

(1)    AANP overview of Full Practice Authority

(2)    SBA Loan resources