Independent Practice

The independent healthcare market is shrinking as consolidation climbs, reimbursements fall and inflation remains high. Here are five notes on the state of physician independence:

Nearly 80% of physicians now work in an employed setting. Here are five ways the remaining 20% keep their practices independent: 

Many smaller private or physician-owned practices have found themselves at a critical junction in recent years. Independent physicians are declining in numbers as the reach of consolidation widens, economic pressure intensifies and administrative burdens persist. 

Autonomy is top of mind for many physicians as the workforce migrates to employment over private practice,and some leaders are joining forces to leverage the power of a group.  

On July 10, CMS proposed a 2.8% conversion factor reduction to its physician fee schedule. 

Administrative work is the biggest challenge for many physician practices, according to a recent survey by MedCentral.

Is time running out for private practice physicians? As the number of physicians practicing independently shrinks, the industry is seeing the effects of this trend in 2024.  

Physician-owned practices reported higher levels of productivity in collections encounters and work relative value units in most specialties when compared to hospital-owned counterparts, according to the Medical Group Management Association's "Provider Compensation and Productivity Data Report."

Maryland-based Chesapeake Independent Physician Association has expanded its ranks to offer physician practices in Virginia the opportunity to join the organization.

The presence of independent physician groups in healthcare has been a symbol of independence, clinical autonomy and managerial flexibility to providers, allowing for competition, variation and variety in medicine. However, as more and more of the healthcare workforce moves toward…