How to Maintain Autonomy as a Private Practice

August 10, 2014

In the Medical Economics article published 8/7/2014, Elaine Pofeldt reviews different ways for private practices to survive and excel especially in light of the many burdens faced by private practices. More and more private practices are facing reduced margins despite working very lean. Thus, many physicians are selling to hospitals and becoming employees as a way out of the increasing burdens and costs of running a private practice. However, many physicians are looking for other ways to survive as an independent practice, and Elaine lists the following as options:

  • Independent Physician Association (IPA)
    • Joining an IPA helps physicians remain independent and reduce burden of administering practice while gaining the strength in numbers
  • Improve Service by Sharing Data
    • By joining with other practices, the patient data can be shared more easily thus streamlining and improving patient care
  • Professional Service Agreement (PSA)
    • In this approach, the physicians contract with the hospital, yet retain ownership of their practice
  • High-Impact Savings
    • For most practices, the biggest costs include the occupancy costs and personnel costs. Many practices are making sure that they operate as productive as possible. Additionally consultants can help with finding best solution.
  • Improve Billing
    • Many practices do not bill for all of the work that they do, thus practices should review how billing processes to improve billing practices.
  • Patient Collections
    • Prior to treatment, perform insurance authorizations and request payment before or after the office visit.
  • Re-examine Fee Schedules
    • Review your fee schedule to make sure that reimbursement is profitable.
  • Join a Private Practice Association
    • By becoming a member of practice management groups, physicians can focus on patient care instead of administering the practice.

View the entire article at Medical Economics:
http://medicaleconomics.modernmedicine.com/medical-economics/news/how-survive-independent-practice