Orthopedic practice startup guide

How to Start an
Orthopedic Practice

A roadmap for building a compliant orthopedic practice with appropriate privileges, imaging, DME, therapy, billing, and surgical operations.

What this page coversStarting an orthopedic practice requires a defined surgical or non-surgical scope, facility and payer credentialing, durable clinical workflows, and substantial capital planning for equipment, imaging, staff, and revenue-cycle operations. Surgical, ancillary, and referral arrangements need careful Stark Law and state-law review.
Who this is for: Orthopedic surgeons, sports medicine physicians, MSO founders, and orthopedic groups opening or expanding an independent practice.
Disclaimer: This guide is educational and not legal, medical, billing, or tax advice. Orthopedic ownership, imaging, ASC, DME, therapy, scope-of-practice, payer, and referral rules vary by state and facts. Consult qualified counsel and clinical advisors.

Define the Orthopedic Care Model

Quick answer: Choose whether the practice focuses on orthopedic surgery, non-surgical sports medicine, or an integrated model with a clear clinical scope.

Orthopedic surgery practices manage operative care and commonly need hospital or ASC privileges, case scheduling, implant relationships, preoperative processes, and postoperative follow-up. Non-surgical sports medicine models may emphasize diagnostics, injections, rehabilitation coordination, and return-to-activity care.

Define what can be safely delivered at launch and build referral, escalation, and continuity protocols around that scope.

Orthopedic surgerySports medicineClinical scope

Privileges and Surgical Operations

Quick answer: Hospital and ASC privileges are facility-specific and should be secured before a surgical service line is marketed.

Facilities review education, licensure, training, case experience, peer references, and quality history. Keep credentialing files current and confirm call coverage, emergency transfer, infection control, implant, and postoperative requirements.

An ASC can improve workflow, but ownership and referrals require a detailed Stark Law, Anti-Kickback Statute, state licensure, and transaction analysis.

  • Verify facility privilege criteria and renewal requirements.
  • Document training, case logs, references, and quality data.
  • Review ASC ownership with healthcare counsel.
  • Align perioperative and emergency protocols with facility rules.

Imaging, Fluoroscopy, and Diagnostic Workflow

In-office X-ray can support efficient evaluation when the practice complies with radiation registration, safety, personnel, supervision, maintenance, and payer rules. Fluoroscopy may add further operational and safety requirements.

Build processes for ordering, image acquisition, interpretation, reporting, quality assurance, and transfer to outside facilities. Equipment selection should follow anticipated patient volume and clinical need, not only a financing offer.

X-rayFluoroscopyRadiation safety

Schedule a Healthcare Strategy Session

Get Started

DME Dispensing and DMEPOS Compliance

Braces, boots, supports, and other DME can improve patient convenience, but dispensing creates inventory, documentation, fitting, training, supplier, and billing responsibilities. Medicare DMEPOS enrollment has its own compliance requirements for eligible suppliers.

Do not assume every item is billable or that a clinical order alone supports a claim. Verify medical necessity, coverage, supplier requirements, patient responsibility, and recordkeeping.

DME discipline: Product inventory and billing controls should be reconciled regularly with orders, fittings, claims, and patient acknowledgments.

Physical Therapy and Ancillary Services

Physical therapy integration may improve coordinated care, but ownership, referral, supervision, location, and billing arrangements need Stark Law and state-law analysis. The in-office ancillary services exception is fact-specific and should not be assumed to apply.

Create meaningful clinical choice and clear referral documentation. Care coordination should serve the patient rather than channel referrals based on financial pressure.

Physical therapyStark LawAncillary services

Coding, Billing, and Specialty Claims

Quick answer: Orthopedic billing needs specialty coding controls for visits, procedures, implants, global periods, and payer-specific documentation.

Common code families include 99213 through 99215 for visits, 27447 for total knee arthroplasty, and 29881 for certain knee arthroscopy services, subject to current coding rules and supporting documentation. Establish charge capture, modifier, global-period, implant, and denial workflows with qualified billing leadership.

Workers compensation and auto injury claims have distinct authorization, billing, documentation, lien, and payment processes. Staff them separately from ordinary commercial claims where possible.

  • Use specialty-specific coding edits and claim review.
  • Track global periods and postoperative billing rules.
  • Build separate workers compensation and auto-injury workflows.
  • Audit denials and documentation patterns monthly.

Need a Medical Director?

Get Started

PRP and Regenerative Injections

PRP and other regenerative services may be clinically considered in appropriate circumstances, but payer coverage is variable and marketing scrutiny is high. Many practices use cash-pay models.

Use evidence-aware protocols, informed consent, truthful marketing, product traceability, and documentation of medical rationale. Avoid promising regeneration or guaranteed recovery.

PRPRegenerative medicineCash-pay

Technology and EMR Selection

Orthopedic EMRs such as Modernizing Medicine and Nextech may offer specialty templates, imaging workflows, procedure documentation, and reporting. Evaluate usability, interoperability, billing tools, patient communication, implant support, and implementation capacity.

Templates should improve documentation without creating copy-forward records that obscure the patient-specific assessment.

Financial Plan and Startup Costs

Quick answer: Orthopedic startup costs often range from $300,000 to $1 million or more because imaging, buildout, staff, surgical planning, and working capital are capital-intensive.

Model leasehold improvements, imaging, equipment, implants and supplies, IT, malpractice, staffing, legal work, credentialing, and months of working capital. Large purchases should have a volume, utilization, maintenance, and reimbursement case.

Track provider capacity, surgical conversion, collection rate, days in accounts receivable, imaging utilization, DME margin, no-shows, and referral-source performance.

  • Plan for credentialing and reimbursement delays.
  • Separate surgery, clinic, imaging, and DME economics.
  • Evaluate leasing versus buying capital equipment.
  • Maintain conservative working-capital assumptions.

Starting a New Clinic?

Get Started

Compliance, Referrals, and Quality

An orthopedic compliance program should cover privacy, billing, referrals, imaging safety, DME, therapy, conflicts, informed consent, infection control, incident response, and professional liability. Regular chart and claims audits help identify patterns early.

Build referral relationships through clinical communication, access, and quality rather than inducements. Give clinical leaders authority to correct unsafe or noncompliant practices.

  • Audit charts, procedure documentation, and coding.
  • Review referral and financial relationships with counsel.
  • Train staff on privacy, safety, escalation, and complaints.
  • Maintain quality review and corrective-action records.

Build the infrastructure behind your clinic.

AJ Pakpour advises physicians, NPs, PAs, clinic owners, and healthcare entrepreneurs on compliance, operations, and growth.

Frequently Asked Questions

How much does it cost to start an orthopedic practice?

An orthopedic startup may require approximately $300,000 to more than $1 million depending on buildout, imaging, equipment, staffing, working capital, and whether it includes surgery or ASC investments.

Do orthopedic surgeons need hospital privileges?

Surgeons generally need appropriate facility privileges for hospital surgical cases. Requirements vary by facility and can include training, case logs, peer references, credentialing, and ongoing quality review.

Can an orthopedic practice own an ASC?

Potentially, but ASC ownership and referrals require careful analysis of Stark Law, Anti-Kickback Statute, state law, licensure, ownership, and transaction structure with healthcare counsel.

Can an orthopedic office provide X-rays?

Yes, subject to applicable state radiation rules, equipment registration, qualified personnel, safety protocols, payer requirements, and supervision. Fluoroscopy may have additional obligations.

What is a DMEPOS supplier number?

A Medicare DMEPOS supplier number is part of the enrollment and compliance process for suppliers seeking to bill eligible durable medical equipment, prosthetics, orthotics, and supplies.

Can orthopedics integrate physical therapy?

Some practices integrate physical therapy using a structure that meets the Stark Law in-office ancillary services exception and applicable state rules. Counsel should review ownership, supervision, location, and referral facts.

Which codes are common in orthopedic billing?

Examples include 99213 through 99215 for visits, 27447 for total knee arthroplasty, and 29881 for certain knee arthroscopy services when documentation and payer rules support billing.

Are PRP and regenerative injections covered?

Coverage varies and many regenerative services are cash-pay. Practices should avoid unsupported claims, use appropriate consent, document clinical rationale, and verify payer and state requirements.

Recommended Professional References

The following authoritative resources are recommended for healthcare professionals, clinic owners, compliance officers, and entrepreneurs working in this area. Links open official external websites.

American Academy of Orthopaedic Surgeons

AAOS provides professional education, practice resources, and clinical guidance for orthopaedic surgeons. It supports specialty practice planning and continuous learning.

Orthopaedic practiceFree + Paid

Best for: Orthopaedic surgeons and practice leaders

American Board of Orthopaedic Surgery

ABOS provides official information about orthopaedic board certification. It supports credentialing and specialty qualification research.

Board certificationFree

Best for: Surgeon credentialing and verification

CMS: Physician Self-Referral

CMS provides official Stark Law information. It is relevant to ancillary services and financial relationships in orthopedic practice models.

Stark LawFree

Best for: Therapy, imaging, and referral arrangement review

HHS Office of Inspector General

HHS OIG offers compliance guidance and enforcement information. It helps organizations assess Anti-Kickback and program-integrity risks.

Program integrityFree

Best for: ASC, referral, and compensation compliance

OSHA: Healthcare

OSHA provides workplace safety resources for healthcare employers. It supports exposure prevention and safety planning in clinic and procedure settings.

Workplace safetyFree

Best for: Orthopedic clinic and procedure safety

FDA: Medical Devices

FDA provides information on medical device regulation and safety. It supports diligence for implants, equipment, and other orthopedic devices.

Device regulationFree

Best for: Implant and device compliance planning

CMS: Clinical Laboratory Improvement Amendments

CMS administers CLIA standards for laboratory testing. It supports planning for qualifying in-office testing.

Laboratory complianceFree

Best for: Practices adding point-of-care testing

American Orthopaedic Society for Sports Medicine

AOSSM provides education and professional resources for sports medicine. It supports practices with athletic, injury, and return-to-play service lines.

Sports medicineFree + Paid

Best for: Sports medicine and orthopedic teams

Book a Healthcare Strategy Session Medical Director Services