Common Pitfalls in Medical Practices #6: Overlooking Tax and Legal Expertise
By Dr. Ugochi Okoroafor, Board-Certified Orthopedic Surgeon | Owner, Niche Hand Surgery and Orthopedics
Doing It Yourself Is Not Always Cheaper
When you’re starting a practice and trying to limit expenses, handling your own taxes and legal matters can feel like a smart way to save money. You’re used to figuring things out. How hard can it be?
But here's what I've seen happen to a lot of new practices: tax and legal matters in healthcare get complicated fast, and a small mistake early can turn into a large expense. Missed filings, the wrong business structure, or a contract you didn’t fully understand can cost far more than the help you skipped.
Saving a little now is not worth a costly problem you could have avoided.
How to Get the Right Tax and Legal Help
The goal is not to spend on everything. It's to get the right help in the right places. Here's how I think about it as the owner of Niche Hand Surgery and Orthopedics:
1. Hire Experts Who Know Healthcare
A general accountant or attorney is not enough. Look for professionals who work with medical practices and know the rules in your state. Healthcare has its own tax, billing, and compliance issues, and you want someone who has experience with these.
2. Get Help Before You Need It, Not After
The best time to talk to an accountant and an attorney is while you are setting up, not after you have a problem. They can help you choose the right business structure, assist with the necessary filings, and review contracts before you sign them.
3. Keep Experts On Board for Ongoing Guidance
This is not a one-time task at startup. Tax rules change, your practice grows, and new contracts come up. A short check-in a few times a year keeps you compliant and helps you catch small issues before they grow.
4. Treat It as an Investment, Not an Expense
A few hundred dollars in good advice can save you thousands in penalties, back taxes, or a agreement. When you see expert help as protection for everything you are building, the cost is much easier to justify.
The Right Help Protects the Practice You Built
When I was starting Niche Hand Surgery and Orthopedics, I wanted to have the right people in my corner for accounting and legal matters. I would rather pay for expert advice up front than clean up an expensive mistake later.
Getting tax and legal assistance lets you focus on what you do best, which is caring for patients, while knowing the foundation of your practice is sound. Partner with the right experts early, and you protect everything you worked so hard to build.
If you’re setting up a practice, or you have been handling the tax and legal side on your own and you’re not sure if you’re doing it right, now is the time to bring in people who do this every day.
This is the last pitfall in the series. Next, we will pull all six together in a short recap you can use as a checklist when starting your own practice.
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