While it’s unclear why the dinosaurs disappeared from the earth, it’s easier to explain why the number of private physician practices is shrinking at an alarming rate.
Economic pressures, long hours and pending Medicare pay cut all weigh heavily on physician-owned practices. It’s becoming increasingly difficult for private practice physicians to run a profitable practice, spend time with patients and have a life outside of the office.
It’s no surprise that about half of physicians hired out of residency and 65% of established physicians were placed in hospital-owned practices during a recent one-year period, according to a physician placement report by the Medical Group Management Association (MGMA).
While the number of physicians and surgeons is expected to increase by 22% from 2008 to 2018, according to the Bureau of Labor Statistics, it appears less and less of them are headed into private practice.
The management-consulting firm Accenture reported that a growing number of physicians will be opting out of private practice, with the percentage of self-employed physicians dropping to 33% over the next three years.
With the American Medical Association reporting that almost 80% of medical students are graduating with at least $100,000 in debt, and 30% owe more than $200,000, it’s no surprise new doctors are gravitating toward guaranteed, stable salaries.
However, for the brave souls that go into private practice, there are several advantages. Whether fresh out of residency or making a shift later in their career, here are several reasons private practice doctors say they are happy with the decision.
Benefits of Private Practice
Run the show. Private practice physicians enjoy the autonomy of running their own practice. Setting their own schedule, developing their own philosophy of care, deciding how much time to spend with each patient and even choosing how to decorate the office are some of the freedoms of private practice.
Be the boss. When a physician owns their own practice, they have job security. When employed by a hospital or group, they can be let go for any number of reasons.
Avoid politics. The same hierarchies and politics of the corporate world can be found in hospitals. Physicians who own their own practices are able to steer clear of these headaches.
Choose the staff. When physicians run their own practice, they can build a loyal staff and even hire family members to help run the business. Developing a trustworthy team is important, and much more difficult when new hires are done through human resources with little input from the doctors.
Create a legacy. Building a practice from the ground up allows physicians to develop a practice that reflects their own personality. It allows them to build long-term relationships with patients and leave their mark on the community they serve.
Ultimately, it’s up to the doctor to decide what is best for his or her career and life, but private practices often provide under-served communities and can create more substantial relationships with patients.
Private practices are an important part of the healthcare landscape, so here’s to hoping they don’t go the way of the dinosaur.
What are the challenges and benefits you see in private practice medicine? Share below.
