This Arizona Healthcare Practice Startup Guide is applicable to physicians, dentists, nurse practitioners, physician assistants, behavioral health professionals, and other licensed healthcare providers.
This Guide is intended solely as a general informational and educational resource regarding certain business considerations for starting a healthcare practice in Arizona, is not legal advice and does not address all business and/or legal issues that may be applicable to a particular provider, specialty, or practice structure. This Checklist and its contents are subject to change, and readers should consult legal counsel and advisors for advice specific to their individual circumstances.
I. Executive Summary and Planning
- Define practice scope, services and target patient population
- Establish a phased timeline from concept to opening
- Consider which legal, financial and operational advisers will be involved (e.g., healthcare attorney, banker, CPA, insurance broker, IT/security vendor)
II. Entity Formation and Governance
- Determine the permitted ownership and entity structure for your license type (e.g., PC, PLLC, Corporation, LLC, partnerships, etc.), including tax classification
- Evaluate internal governance documentation, economics, and control arrangements
- Consider how ownership changes will be handled
III. Regulatory and Compliance Framework
- Confirm licensure, facility requirements, and scope-of-practice limitations
- Develop a compliant operations framework (billing, documentation, privacy, prescribing, compliance policies)
- Evaluate exposure under federal and Arizona regulatory regimes (e.g., fraud and abuse, HIPAA, workplace safety)
IV. Staffing and Workforce Model
- Define the clinical and administrative staffing model
- Evaluate employee vs. independent contractor relationships
- Align compensation structures and incentives with regulatory requirements
- Consider an employee handbook, employee insurance and benefit offerings
V. Facilities and Operations
- Evaluate facility options, including leasing or purchasing clinical space
- Confirm zoning, permitted use, and healthcare-specific requirements
- Establish vendor relationships for clinical, IT, and facility operations
VI. Technology and Data Infrastructure
- Select appropriate EHR and practice management systems
- Evaluate data privacy, cybersecurity, and interoperability considerations
VII. Revenue, Reimbursement and Risk Management
- Develop a payer and reimbursement strategy (Medicare, AHCCCS, commercial plans)
- Implement billing, coding, and collections processes
- Evaluate insurance coverage and risk allocation strategies (e.g., professional liability, general liability, EPLI, cyber, errors and omissions, directors and officers, and property insurance)
VIII. Marketing and Outreach
- Establish a marketing strategy and patient outreach approach
- Ensure compliance with professional advertising and patient communication rules
- Evaluate referral development and community engagement strategies
IX. Ongoing Compliance and Lifecycle Management
- Plan for ongoing regulatory compliance, renewals, and audits
- Monitor evolving payer, regulatory, and operational requirements
X. Growth, Transactions, and Exit Planning
- Plan for practice growth, expansion, or additional ownership
- Consider affiliations, joint ventures, or potential transaction structures
- Evaluate long-term succession and exit strategies
