Here are 10 notes on the growing surge of physicians looking to start or join independent practices:
1. Consulting firm Bain & Co. recently released its “Frontline of Health Survey” in an October blog post, which highlighted that nearly 25% of physicians in health system-led organizations are debating a change in employers, compared to 14% in physician-led practices.
2. Many physicians cite reimbursement declines, regulatory burdens, a lack of leverage with payers and soaring practice costs as reasons for shifting to independent practice. Yet Bain’s survey suggests that physicians are increasingly less satisfied with this tradeoff.
3. Among physicians in physician-led practices, 78% said their organizations have effective processes and workflows, compared to just 59% of those in hospital-led organizations. Those in physician-led practice also reported 81% satisfaction with their involvement in strategic decision-making, compared to just 50% in hospital-led practices.
4. Some practice development and management models prioritize independence, marking a shift away from acquisition-focused models that often result in lower physician satisfaction. Ker Leader Medical, an ASC development company, is one group that offers creative financing solutions for new practices while centering physician leadership and independence.
5. These sorts of models have also begun to thrive in physician specialties, like cardiology, where technological developments have made it possible to transition more procedures into an outpatient setting. Houston-based CardioOne has a similar model to Ker Medical, as they do not acquire, own or employ any of the physician practices they develop and support.
6. Susan Baumgaertel, MD, an internal medicine physician based in Seattle, also encourages physicians to explore their options and think creatively about what a shift in practice setting might look like for them. She left her employed position in 2021 to start her own independent practice, myMDadvocate, a multifaceted telemedicine healthcare navigation hub.
“I feel like many [physicians] are unaware or just feel frozen, and they don’t know what their next steps might be if they want to kind of pivot in their career,” she told Becker’s. “[I]t doesn’t mean abandoning medicine, [it] just means doing it a different way.”
7. Ancillary services are emerging as a key component of private practice revenue. Seventy percent of private practices that introduced ancillary services found them both easy to implement and financially rewarding — with some seeing revenue increases in as little as one month, according to a recent survey from healthcare software company Tebra published Jan. 30.
Tebra surveyed 122 small private practice owners to uncover their biggest cost burdens and where they’re making up for them.
8. According to the report, practices that expanded their offerings are seeing rapid returns, with 28% reporting revenue boosts within 30 to 59 days of launching new services.
Here’s a breakdown of the ancillary services that private practice physicians offer:
- Laboratory services:34%
- Radiology and imaging: 32%
- Nutritional counseling and weight loss programs: 27%
- Electrocardiograms: 19%
- Pain management treatments: 18%
- Addiction medicine: 14%
- Spirometry for lung-function testing: 14%
- In-house pharmacy services: 10%
- Implantable contraceptives: 6%
- Holter monitoring for heart rhythm: 4%
9. Independent physicians are often earning more than their employed peers. According to Medscape’s “Physician Compensation Report 2023,” self-employed physicians reported $374,000 yearly salaries on average, compared with $344,000 for employed physicians.
10. Collaboration and aligned values are also key for developing sustainable partnerships in private practice. Columbia (Mo.) Orthopaedic Group has managed to stay independent despite strong consolidating factors in the industry. Andrew Lovewell, CEO of Columbia Orthopaedic Group, told Becker’s that independent practices can be designed to provide the more personal healthcare experience that patients already desire.
“The nice thing about that is, when the physicians are in control and they have more say in what happens, they actually can deliver better care,” he said. “It’s a tall order, but it can be done if you get the incentives aligned, especially with the physicians and the patients. If patients are getting better outcomes at a lower price, which is a higher value product, patients want to want that.”
