Starting a new dental practice can offer practitioners an exciting professional and financial opportunity. However, opening a new practice comes with risks that owners should recognize and understand how to manage. Risk management for new dental practices should involve more than reacting when issues arise. Instead, risk management should also include proactively identifying and mitigating potential problems to protect the hard work you’ve put into opening a new dental practice. An experienced dental attorney can help you develop the following effective risk management strategies for your new dental practice.
Understanding and Complying with Legal and Regulatory Requirements
Before opening a new dental practice, you must familiarize yourself with legal and regulatory requirements applicable to dental practices, including state and local licensure requirements, OSHA workplace safety standards, and HIPAA compliance rules for protecting patient information. In particular, you should be sure your new practice’s documentation, such as treatment consent forms and patient records, meets the standards imposed by laws and regulations. Working with legal advisors can help you understand and comply with regulatory requirements in dental practice.
Investing in Insurance Coverage
Mitigating risk from operating a dental practice may include obtaining insurance coverage that protects from financial liability. Types of insurance you should consider procuring include:
- Dental malpractice/professional liability insurance
- Workers’ compensation insurance
- Commercial property insurance
- General liability insurance
- Equipment insurance
- Umbrella insurance
Developing a comprehensive insurance coverage scheme can help mitigate losses from lawsuits or regulatory actions.
Implementing Robust Patient Data Practices
Federal and state laws obligate healthcare providers to adopt data security practices that meet specific standards. As patient records increasingly become electronic, dental practices should invest in cutting-edge secure electronic health records systems that meet HIPAA requirements. Furthermore, practices should conduct regular staff training on HIPAA requirements and data security practices, including how to avoid phishing schemes or other malicious attacks on the practice’s computer systems. Finally, practices should create a plan for responding to data breaches or ransomware attacks, rather than trying to develop a response if a breach occurs.
Training Effective Staff
A qualified, trustworthy staff can mitigate legal risks for a new dental practice. Poor hiring choices could expose your practice to liability, such as malpractice or assault claims from patients, insurance/Medicare/Medicaid fraud, or theft/embezzlement. When setting up a new dental practice, you should develop a hiring protocol that includes thorough background checks and verification of professional credentials. Hiring practices should also include a comprehensive onboarding program to instruct new hires on your practice’s standards. Finally, practices should invest in ongoing training for staff in matters such as patient care, safety protocols, and regulatory compliance.
Developing Financial Oversight and Internal Controls
New dental practices will need billing and financial management systems to keep track of money and avoid potential legal risks. For example, billing and collection software can help practices ensure payment while avoiding errors that could lead to problems with insurers or public health programs. Practices can also conduct financial and billing audits with CPAs and financial advisors. Advisors can also help practices develop internal procedures that reduce the risk of fraud, theft, or embezzlement.
Creating and Following a Comprehensive Risk Management Plan
A dental practice’s comprehensive risk management plan can incorporate other features, such as office safety plans to respond to safety threats, infection control protocols, emergency procedures to address patient health complications during procedures, and programs for responding to patient complaints. Practices can schedule periodic audits and team reviews to update risk management plans, including when dental regulations and best practices change.
Contact Our Firm Today for Help Setting Up Your Practice
Before you open a new dental practice, you can best protect your efforts and interests by working with a seasoned dental attorney to understand how to manage the risks of starting a practice. Contact Mahan Law today for an initial consultation to discuss how our firm can assist you with setting up your new dental practice.
