Growing Demise of the small private medical practices

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• Category Medical Practice

• Mar 30, 2018 23:36

Doctors have been bemoaning changes in the practice of medicine for years and with good reason. It’s harder and harder to make a go of it in a small private practice. In recent years our country has lost thousands of small practices either by retirement or being swallowed up by large regional groups.

Unfortunately, young, freshly trained physicians are not arriving here in enough numbers to take their places. Most of the recent graduates take positions with large organizations that can offer student loan repayment, regular hours and a consistant salary. Thus, it's easy to understand why new physicians want to be employees with reasonable pay and limited hours. If you are not working for yourself, then why be overworked.

The days when a doctor could come to a small town, rent an office and hang a shingle, unfortunately, is pretty much over. The knowledge base necessary to run a small business is not part of medical school education, and very few new graduates want to tackle such a task. In addition to the basics of business, running a medical office requires a lot more. A doctor must navigate a myriad of regulations surrounding everything from patient confidentiality to the inclusion of specific features in your electronic health record in order to successfully navigating the myriad of medical billing. Large organizations have departments that specialize in human resources, bookkeeping, medical billing and so forth. In a small practice, one person has to learn so many different duties which is often too daunting of a prospect. Employment law is another complicated and detailed aspect to understand. 

The computerization of medicine and medical records has added another layer of expense and complexity. In addition to purchasing the electronic health software, you likely must pay an IT company to maintain it and provide repairs and upgrades. Don't forget your website...

Medical billing alone has become complex and difficult. Most offices have over 12+ different payors who all have different rules and reimbursement rates. Many have full-time billers who work on claims, submissions and collections. while others have more who handle medical records and referrals.

 Hopefully, the care and service we are used to wont be a causlty in this transformation from small doctor to big business.