Collaborative Agreements for NPs & PAs: Compliance Mistakes That Can Cost You Your License

September 26, 2025   |   Nurses

With so many proposed changes to healthcare in 2025, many advanced practice providers are taking matters into their own hands by turning side hustles into full-time businesses. Across the country, nurse practitioners (NPs), physician associates (PAs), registered nurses (RNs) and other allied health professionals are building businesses that start small and scale into full-fledged practices –– even with multiple locations.

While the journey from side hustle to sustainable business looks different for every provider, many entrepreneurs implement some of the same strategies, like spotting unmet needs, taking smart risks and implementing strong systems for long-term growth. Along the way, malpractice insurance and risk management play a quiet but critical role in helping these entrepreneurs build compliant and sustainable businesses.

Why Healthcare Providers Are Choosing Entrepreneurship in 2025

Providers in 2025 and moving into 2026 are pursuing entrepreneurship for reasons that echo across disciplines:

  • Autonomy: The freedom to design how and where they practice.
  • Opportunity: Patient demand for services like IV hydration, aesthetics, wellness or specialty chronic care is growing.
  • Financial sustainability: Owning a business can create income stability in a healthcare landscape of shifting reimbursements and burnout.

Telehealth and technology, especially, have lowered the barrier to entrepreneurship entry, with turnkey platforms, digital health tools and online marketing channels making it easier than ever to test, build and even scale.

How Clinicians Scale Side Hustles Into Healthcare Businesses

Below are three providers dreaming big, while making an impact in their communities and beyond.

PA Entrepreneur Launches Gestational Diabetes Startup: RenewRx

Kari Cao, PA, realized she wanted to launch and scale a business related to her nutrition and PA experience before she knew exactly how. Today, she’s successfully founded and is expanding RenewRx, a platform that combines a patient app, provider dashboard and nutrition coaching to bridge gaps in maternal care. 

Cao invested personal capital, secured over $1 million in venture capital funding and demonstrated how clinicians can translate frontline frustrations into scalable businesses. Besides her big dreams and drive, what’s helped Cao’s business grow is how she managed to align her services with insurance reimbursement pathways. 

Read more about Cao’s startup and scaling story here.

Nurse Entrepreneurs Scaling Businesses Beyond the Bedside

After burning out from hospital work, nurse Catie Harris, PhD, MBA, RN, reinvented herself as the founder of Nursepreneurs, a coaching and community platform that empowers other nurses to start their own businesses. 

Instead of opening a clinic, she scaled through content, group coaching and digital products. Her trajectory shows that not all growth requires investing in a storefront clinic and expensive equipment. Industry knowledge and community can be just as powerful in creating impact and revenue.

Read more about Harris’s story here.

RN Builds Mobile IV Therapy Business in Rural Louisiana

The business story of Amy Green, RN, proves you don’t have to be in a large city to build a successful healthcare business. She launched Hydreight Me Mobile IV after learning her elderly aunt couldn’t access hydration services in her nearby county. 

Green used up most of her savings to invest in a turnkey model for supplies, compliance and documentation. Her gutsy move paid off. Today, she runs a business that supports her family and fills an urgent local care gap. 

Green’s entrepreneurial journey hasn’t always been easy, but bumps along the way haven’t deterred her. For example, when state regulators questioned whether IV therapy required on-site physician oversight, Green proactively engaged the Louisiana state medical board –– proving that entrepreneurship can also require advocacy. Her success highlights how niche services in underserved areas can scale quickly when paired with diligence and regulatory compliance.

Read more about Green’s story here.

Proven Tips to Start and Scale a Healthcare Business in 2025

Across these three examples of successful business owners, a few common strategies that apply to anyone starting or scaling a healthcare business in 2025 and beyond emerge:

Start small: Amy Green began with a single mobile service in a rural area and filled her schedule fast. After only 1.5 years in business, she was ready to hire another nurse.

Solve problems you identify: Every provider sees many holes in the system, but only some have the courage and fortitude to do something about them. Kari Cao’s experience treating gestational diabetes inspired her platform.

Diversify beyond patient care: Catie Harris shows how coaching, content and influence can supplement clinical income.

Stay ahead of risk: Every entrepreneur faces regulatory or liability challenges that require proactive solutions.

How to Scale Your Healthcare Practice with Confidence in 2025

From rural IV therapy to digital health startups, advanced practice providers are proving in one more significant way that they are critical to the next frontier of healthcare.

By combining smart business planning with strong risk management, today’s providers can move from side hustle to full practice with confidence. At CM&F Group, we’re here for you not just to protect your practice but also to provide support that fuels your growth. Reach out on our website to chat with a CM&F Group agent today.

Frequently Asked Questions

  • Why are more nurse practitioners (NPs), physician associates (PAs), and RNs starting healthcare businesses in 2025? Many providers are seeking autonomy, financial stability, and opportunities in growing fields such as IV hydration, aesthetics, and chronic care management. With telehealth and digital tools lowering barriers, NPs, PAs, and RNs are increasingly turning side hustles into full-scale practices.
  • Do I need malpractice insurance when starting a healthcare side hustle or private practice? Yes. Malpractice insurance is essential for protecting your license, finances, and reputation. Even small or part-time ventures carry liability risks, and most state boards and employers require proof of coverage before you can practice independently.
  • What are the biggest challenges healthcare entrepreneurs face when scaling a business? The most common challenges include navigating state regulations, ensuring compliance with collaborative agreements or scope of practice rules, securing funding, and maintaining proper documentation. Addressing these early helps NPs, PAs, and RNs build sustainable and compliant healthcare businesses.
 


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