Starting your own clinic as a physician assistant is becoming increasingly popular. The job outlook for PAs is projected to grow 27% from 2022 to 2032, much faster than average. With this growth, many are exploring physician assistant practice ownership as a real career move.
So, can a PA own a medical practice? What are the legal and business steps involved? What licenses do you need? How do you set up the structure and handle daily tasks like billing, staffing, and compliance?
This blog breaks it all down. Whether you’re curious about PA practice ownership laws or looking for tips on starting a clinic as a physician assistant, this guide is designed to help you make informed, confident decisions.
Can a Physician Assistant Own Their Own Practice?
The short answer: it depends on where you live.
The question “Can a PA own a medical practice?” is common, but the answer varies based on state laws and the type of services you plan to offer. In some states, PAs can co-own practices with physicians.
In other words, laws are more flexible and allow full ownership with the right agreements and structures in place.
Setting Up Your PA Practice – A Comprehensive Guide
Here are some steps to guide you through the process:
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Obtain a Business License
Once you’ve laid the groundwork, your next step is securing a business license. This is a legal requirement in nearly every state if you’re opening any kind of clinic or office. Your local county clerk’s office or state business portal can guide you on how to apply.
You may need multiple business licenses if you plan to sell medical supplies or offer lab testing. Be sure to apply for a federal Employer Identification Number (EIN) through the IRS, which is necessary for taxes and hiring employees.
You’ll also need to register your business name. This is often called a “Doing Business As” (DBA) name if it differs from your legal name.
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Choose Your Business Structure
How you legally set up your business is crucial. It affects your taxes, liability, and future decision-making. Common structures include:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Corporation (S-Corp or C-Corp)
- Partnership (if you’re co-owning)
Most PAs choose an LLC or S-Corp because it protects personal assets and offers tax advantages. LLCs are easy to manage and provide flexibility in profit distribution. However, ensure the structure you choose complies with your state’s PA practice ownership laws.
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Maintain an Active PA License
To operate a legal and reputable practice, you must keep your PA license active and in good standing. This means completing Continuing Medical Education (CME) credits, renewing your license on time, and complying with all medical board requirements.
Your state medical board will provide the specific renewal schedule and education hours needed. Letting your license lapse can result in penalties or prevent you from treating patients, possibly shutting down your clinic.
Many professionals overlook this ongoing requirement. An expired license can cost you money, credibility, and even your dream business. Don’t take it lightly.
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Acquire a DEA License
If you plan to prescribe controlled substances, such as pain medications, ADHD drugs, or anxiety treatments, you’ll need a DEA license. Not all PAs require one, but if it applies to your services, you must obtain it before treating patients.
First, you’ll need a valid state PA license. Then you can complete the DEA application online. There are fees involved, but the license is valid for three years and legally authorizes you to prescribe within your scope of practice. Review your state’s PA practice ownership laws to avoid legal issues.
Once approved, your DEA number will be used on all prescriptions, insurance documents, and electronic medical systems.
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Establish a Supervision Agreement
In most states, physician assistants must work under a supervising physician. That’s why setting up a supervision agreement is essential. It’s a legal document that outlines the relationship between you and your supervising doctor.
The agreement should define your responsibilities, decision-making limits, hours of supervision, and methods of communication. Some states allow virtual supervision, while others require in-person oversight.
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Implement Billing Systems
Once you’re credentialed, you’ll need an effective billing system. This includes coding services, submitting insurance claims, following up on denials, and collecting payments. Even if your clinical care is excellent, poor billing can hurt your business.
Choose billing software that integrates with your electronic medical records (EMR) system. Some PAs outsource billing to third-party companies to save time and reduce errors.
Ensure your coding aligns with current ICD-10 and CPT guidelines. Incorrect billing can lead to insurance denials or even legal trouble.
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Marketing Your Practice
A strong marketing plan is key to growing your clinic. Use tools like Google Business Profile, social media, and local health directories. Consider partnering with local businesses and community centers.
Host open houses, free screenings, or educational events to attract new patients. Word of mouth is also powerful—encourage happy patients to leave reviews online.
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Electronic Medical Records
Your EMR system is the digital brain of your clinic. It stores patient records, tracks appointments, and supports billing and compliance.
Choose a user-friendly system that meets HIPAA regulations. Look for features like patient portals, e-prescribing, and integration with billing software.
A quality EMR saves time, reduces errors, and improves patient care. It also comes in handy during audits or insurance reviews.
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State Laws and Scope of Practice
Each state has different rules for PAs. Your scope of practice defines what services you’re legally allowed to provide, including your authority to prescribe, supervision requirements, and procedural limits.
Stay updated with your state’s medical board. Joining PA associations can help you receive updates on changes in the law. Joining PA associations is a great way to stay informed about legal and regulatory updates
Understanding your state’s laws and scope of practice protects your license and business. It ensures compliance and provides peace of mind.
Final Thoughts
Owning a practice as a physician assistant is becoming more common. By understanding PA practice ownership laws, maintaining the proper licenses, and working with medical practice business brokers like Strategic Medical Brokers, you can build a clinic that serves your community and supports your career.
From applying for licenses to implementing billing systems and choosing the right EMR, each step plays a vital role. The process requires effort, but the reward is freedom, impact, and long-term success.
