Factors Threatening Private Practice

Sophie Baldwin, 6/3/24

When doctors finish their residency, they are faced with an important choice: whether to take a hospital employed job or to go into private practice. While private practices can boast greater potential earnings and more lifestyle control, there are many drawbacks new physicians must consider.

Administrative Burdens

Private practice physicians must take on all administrative tasks that are usually handled by hospitals. This includes billing, coding, maintaining patient charts, and administering staff certificates. Some physicians will even go back to school and obtain their MBA in order to better manage administrative tasks. These tasks are not only tedious and monotonous, but they take valuable time away from treating patients. According to the National Library of Medicine, doctors spend an average of 8.7 hours a week on administrative duties, constituting about a sixth of their total work hours. The tedious administrative work of private practice physicians can lead to frustration and burnout.

Insurance

Along with administrative tasks, private practice physicians can be burdened by insurance policies. Private practice physicians must utilize prior authorization if a patient’s care plan is not covered by insurance. Not all insurance plans in the US will cover all healthcare services, so dealing with insurance issues can be another burden to private practice doctors.

Onboarding

In most cases, doctors cannot run a private practice by themselves. They need secretaries, nurses, and other doctors to ensure that the practice runs smoothly. However, the time and money that must go into onboarding new staff can be burdensome for physicians. It is very expensive to recruit other staff, especially if they are physicians. This serves as a threat to private practices because it is difficult for new physicians to invest this time and money.

Isolation

Since private practice physicians are not a part of hospital communities, they can experience feelings of isolation. Many doctors in private practice may feel that they are on their own and do not have the support system that hospital-employed physicians would have. This feeling of isolation drives many away from private practice.

Burnout

All of the factors mentioned above can contribute to physician burnout in private practices. In addition, since private practice physicians may not be able to take the same amount of sick or vacation days, they may feel burned out from working so much. It is important to consider all of these factors when deciding whether to enter private practice. This lifestyle may not be for everyone, and it is important for young doctors to weigh all their options before beginning a job.

Sources

1. Beacon Live

https://www.beaconlive.com/blog/how-to-address-the-top-5-threats-facing-private-practices-beaconlive

2. American Medical Association

https://www.ama-assn.org/practice-management/private-practices/8-threats-facing-physician-private-practices 

3. National Library of Medicine

https://pubmed.ncbi.nlm.nih.gov/25626223/#:~:text=The%20average%20doctor%20spent%208.7,%2Fgeneral%20practitioners%20(17.3%25).