Opening a Second, Cash-Only Practice

March 1, 2008

I have a standard practice that contracts with commercial payers and Medicare. I’d like to open a cash-only practice in a second location but don’t want to violate any contracts. If I set up the new practice as new corporation with its own tax ID, is this a safe idea?

Question: I have a standard practice that contracts with commercial payers and Medicare. I’d like to open a cash-only practice in a second location but don’t want to violate any contracts. If I set up the new practice as new corporation with its own tax ID, is this a safe idea?

Answer: It would be nice to be able to do both at once, but the consensus among the experts we spoke with is that it can’t be done.

This is an area of healthcare management that is still being fleshed out, though, so it might be worth getting your own attorney to look into the specifics of your plan. What is possible is to keep your regular practice but charge for noncovered services as is done in the more standard concierge-style practices.