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The Fall of Private Practices

Apr 30 2018

Having a private medical practice is considered to be the definition of freedom for a majority of physicians. Although not every doctor wishes to start and successfully operate an independent practice is considered a great accomplishment for others. However, the numbers of private practices opening have been decreasing.

Alex Kacik over at Modernhealthcare.com reports, “Less than half of practicing physicians in the U.S. owned their medical practice in 2016, marking the first time that the majority of physicians are not practicing owners, according to a new study.” In 2016, an alarming number of 47.1% of physicians owned a private medical practice.

What’s the reasoning behind this decline? A number of aspects play a vital role in the decrease. The cost of medical equipment is a reason why physicians rather stick to their hospital of employment, rather than paying for a multitude of necessary equipment. Ncbi.com claims “The instruments and equipment used in modern eye care have become very sophisticated and expensive.” That’s why it’s best to start with used medical equipment for physicians that want to open his/her own practice.

Another reason is the challenge of setting prices that are low enough to get regular patients and decent enough so that the practice turns a profit. This can be difficult in the beginning. Physicians want their practice to be the primary choice for patients so pricing, especially what type of health insurance would be accepted, plays a major role. This is also a good reason for physicians to welcome whatever financing they can get that doesn’t cause the practice to go into financial troublealong the way.

Although the decrease of independent practices has declined, it’s never the best or the wrong time to start a private practice. There are always ways to overcome obstacles and prepare for the journey that is entrepreneurship.