Dental Practice start-up checklist

Resources for starting up a dental practice

LHPS – resources for dental professionals

1. Selecting Your “Team” Members

Interview and select dental supplier

  • Determine level of services needed/offered
  • Meet with your potential sales rep as well as equipment rep
  • Obtain and check references. Ask for 5 most recent projects.

Meet and interview at least 10 general dentists in desired area

  • Discuss practice philosophy & treatment styles
  • Ask for advice/assistance. "Don't make the same mistakes"
  • Discuss potential for referrals (Both ways)
  • What patients do they refer out, or desire?
  • Get references for contractors, labs, suppliers, vendors, advisers.

Meet and interview area specialists

  • Assess compatibility of practice philosophy & treatment styles
  • Ask for advice/assistance. "Don't make the same mistakes"
  • Discuss potential for referrals (Both ways)
  • Get references for contractors, labs, suppliers, vendors, advisers.

Meet and interview other area health providers

  • Physicians, Veterinarians, Optometrists, Pharmacists, etc.
  • Ask for advice/assistance. "Don't make the same mistakes"
  • Discuss potential for referrals (Both ways)
  • Have your resume available or a brief bio with picture

Interview and select accountant

  • Determine level of services offered
  • Obtain estimate of fees
  • Consider self-accounting (Quickbooks, etc)

Choose form of practice

  • Sole Proprietorship
  • Professional Limited Liability Company (PLLC) is most common
  • "C" Corporation
  • Professional Association (PA)
  • Subchapter S corporation?

Interview and select attorney

  • Determine level of services needed
  • Loan documentation review
  • Office lease review
  • Creation of business entity (Coordinate with CPA for choice)
  • Obtain estimate of fees

Apply for Tax ID # (Employer Identification Number)

  • Either call (800) 829-4933 or
  • Internet Application http://www.irs.gov

Determine need for real estate professional

  • Inquire about experience with dental offices
  • Obtain and check references

Interview and select contractor

  • Determine level of services offered
  • Obtain and check references
  • Determine dental office experience
  • Complete office design and obtain construction cost estimate

2. Securing the Startup Practice Loan

Interview potential loan sources/banks

  • Ask colleagues and advisers for bank referrals
  • Determine need for co-signer/ outside collateral
  • Is a down payment or a certain amount of savings required?
  • Understand prepayment penalties/restrictions
  • Consider multiple applications to multiple sources

Gather the necessary documentation for your loan request

  • Prepare cover letter describing opportunity (Sales Letter)
    • Why should the bank loan you the money?
  • Prepare summary of loan request
    • Dental and Office equipment
    • Construction costs
    • Office furnishings
    • Working Capital
  • Prepare Personal Financial Statement
  • Prepare Personal Living Expenses Budget
  • Provide past 3 years personal tax returns
  • Prepare 1-2 year Cash flow projections for your business

3. Preparing for the Opening (Construction Phase)

Secure insurance coverage(s) for loan securement

  • Life insurance in the amount of the loan
  • Personal Disability policy (Optional but recommended)
  • Business Overhead policy (Optional)
  • Obtain Contents Insurance for your office equipment
  • Obtain Workmen's compensation policy
  • Obtain Malpractice insurance

Make application with 3rd party providers

  • PPO providers (Delta, Met-life, Aetna, etc.)
  • Capitation & Medicaid providers (approval may take 45-60 days)

Interview and select bank for business accounts

  • Set up accounts
  • Order checks, deposit slips and bank deposit stamp
  • Assess check capture option and related fees

Set up merchant services (credit card) account

Determine need for outside payroll company

Set up internal bookkeeping software (Quickbooks or similar)

Obtain DEA number or change address

  • Order prescription pads

Establish electronic tax filing account (EFTPS)

Design and create website and marketing materials

  • Interview and select professionals for:
    • Website design
    • Marketing materials and social media presence
    • Creation of brand, logo and practice trade name
    • Printing
      • Business card, letterhead & envelopes
      • Brochures
      • Announcements to colleagues, friends, family

4. Establish Practice Policies

Obtain/revise/write Office Policy manual

Determine initial employee needs, salaries, benefits, bonus

Interview and hire initial employees

Meet with new staff to discuss:

  • Phone greeting
  • Appointment scheduling preferences & time allotments
  • Credit policy

Establish fee schedule

Determine policy for warranty of dental work

Determine policy for pro bono or discounted work

Establish guidelines for new patient integration

Determine procedure for case presentation(s)

Set up Texas Workforce Commission account

  • This must be done AFTER your first payroll is made
  • Online at www.twc.state.tx.us/customers/bemp/bempsub3.html