Can You Afford to Own Physician Practices?

In this country, physicians have traditionally cared for patients in small, privately-owned clinics. Today, the majority of young physicians are opting for employment at hospitals and health systems as opposed to practicing medicine in a private practice setting. Moreover, a growing number of established physicians have embraced hospital employment to eliminate the burden of healthcare administrative duties. Physician-owned practices are dwindling at an increasing rate due to rising operating costs and reimbursement reductions that are overwhelming many private practices.1 The Medical Group Management Association (MGMA) charted the recent decline in physician-owned practices compared with the rise in hospital-owned physician practices. Hospital ownership of physician practices tripled from 25 percent in 2002 to nearly 75 percent in 2011.





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