PRACTICE POINTERS

July 11, 2024

Dear Sir or Madam:

It can be difficult for physicians entering practice to understand the lifestyle and work-life balance that various practice environments allow. Moreover, changes in legislation, regulations, and insurance requirements cause mid-career physicians to consider alternative practice settings, while late-career physicians who aren’t ready to retire often look at other options before walking away from medicine entirely. 

In the June issue of Practice Pointers, we started a series entitled Pros and Cons of Practice Settings. In the first issue, we examined the various physician-owned practices. 

In this edition of Practice Pointers, we will discuss the pros and cons of employment in various settings, such as a hospital, health-system owned, private-equity owned, or academic practices.

WE WANT TO KNOW

Poll: Are you considering a change in ownership/practice setting in the next year? Why? 

Submit an answer and await the results. Curious about the last poll results?  Find them here and now you can access past newsletter polls, too.  

Wondering what other practices are thinking, planning, or doing? Just ask! Submit a question for an upcoming poll.  

DID YOU KNOW

Key findings from an April 2024 report published by Physicians Advocacy Institute and Avalere Health indicate four out of five physicians (77.6%) across the United States are now employed in a hospital or corporate-owned practice settings.  

NOW YOU KNOW

Let’s review some practice setting considerations to help you decide what you want and need in an employment setting:    

• What is it you are hoping to accomplish by changing your current practice setting?  
• Can you afford to change your practice setting? Do you have debt?   
• Do you have a good reputation in the community? If you are selling your independent practice, a good reputation will attract buyers.   

Now let’s look at various practice settings and their respective pros and cons: 

Employment – Physician-Owned Practice 

Positives

Predictable income and benefits; 

No start-up costs; 

More predictable work hours; 

Work/life balance; 

Access to colleagues for case consults; and

Call coverage can be split. 

Negatives

Limited income growth potential, which means no opportunity for ownership;  

Future is tied to the organization’s success; and

Limited input on strategic and administrative decisions-growth, staffing, and purchases. 

Employment – Hospital or Private Equity  

Positives

Low financial risk; 

Predictable income and benefits; 

Structured environment; 

Relief for administrative responsibilities; and

A built-in referral network. 

Negatives

Organizational politics and policies; 

No independence or decision-making authority;

Limited income growth potential;

No clinical autonomy;

Little control of staff and workload; 

Future tied to the organization’s success; 

Committee work; and 

Looming mergers/acquisitions. 

Academic Practice  

Positives

Time for research;  

Teaching opportunities; 

Flexible clinical responsibilities; and 

Rewarding and prestige. 

Negatives

Limited compensation; and

Often dependent on grant funding. 

Ensure you understand all your contracts by having an attorney review them before signing on the dotted line.    

From there, build a support team to help you through this process. You should have a practice adviser or consultant, an attorney board certified in health care, a certified public accountant with health care experience, and a banker.    

Need More Help? Try These TMA Tools:  

1. American College of Physicians: Practice Settings Information  
2. TMA Webpage: Practice Help  
3. TMA Education: Non-Competes and Restrictive Covenants  

Are you on the staff of a TMA member physician? Create an account for free access to members-only resources.  

KNOW YOUR BENEFITS 

Save the Date: TMA’s Business of Medicine Conference 

TMA's Business of Medicine Conference isn’t just for physicians—practice staff is invited to attend at a discounted rate. Some of the conference highlights and topics include Ask the Expert – Discussion on practice business related responsibilities from a panel of experts; AI in Medicine; Business Communication: How to be Heard; and Practice Advertising: Sending the Right Message. 

Learn more and register today at https://www.texmed.org/BMC/ 

Benefits of Integrated Digital Intake & Electronic Billing

By Health iPASS

Medical practices are facing significant challenges in the current healthcare landscape. With the prevalence of High Deductible Health Plans and a 20% percentage increase in patient responsibility in the last 5 years, physicians are feeling financial strain. Additionally, front office staff are burdened with manual processes that can be overwhelming and time-consuming. To ensure the financial stability of healthcare practices, streamlining intake procedures and automating tasks is crucial. By implementing efficient systems and technology, practices can improve their revenue cycle management and better serve their patients.

Our platform is designed to alleviate financial burdens and enhance operational efficiency with the following:

• Virtual Integrated Check-in: Have patients fill out demographics, forms, eligibility information and payments from their phone before they get in the office- all pushing back to your practice management system.
• In clinic Check-in with Kiosks: Give your staff the tools they need to keep the front desk line low and your patients happy. Utilize our Kiosks or QR codes to give your patients a streamlined airport like experience.
• Cost Estimation: Provide accurate cost estimates based on patient’s insurance and provider rates while Increasing transparency and patient satisfaction.
• E-Billing Solutions: Chase down open patient balances with automation, in a way patients prefer to pay. Text & Email help staff save time, help patients understand their bill and get your practice the money you need.

Health iPASS not only helps physicians increase their collections and reduce administrative work but also ensures patients have a seamless payment experience and better communication.

Unlock a new level of patient engagement with Health iPASS today! Visit us at www.healthipass.com or call (858) 484-4727 to schedule a demo.

Lena Loomis, BA, CCM  

Director, Member Experience and Insights  

Ms. Loomis is director of member experience and special projects with approximately 12 years’ experience in project management and publishing. Her expertise includes process improvement, continuing medical education publications, editing website content, and providing administrative support for the TMA Education Center. Ms. Loomis holds a bachelor’s degree in English from Texas State University.   

What is your favorite place to vacation?  

Disneyland and Japan are tied.  

KNOWLEDGE AT YOUR FINGERTIPS

TMA Practice Services | TMA Knowledge Center | Practice Well Podcast | Billing and Coding Guidance | Payer/Claims Assistance | TMA Education Center

NOTICE:  This publication is intended for general informational purposes only.  The information provided in this publication does not constitute legal, medical, accounting, or tax advice.  This publication is also not intended to establish medical standards of care for the purposes of litigation, including expert testimony. The standard of care is dependent upon the particular facts and circumstances of each individual case and no generalization can be made that would apply to all cases.

The Texas Medical Association (TMA) provide this information with the express understanding that 1) no attorney-client relationship exists, 2) neither TMA nor their attorneys are engaged in providing legal advice and 3) the information is of a general character. This is not a substitute for the advice of an attorney. Although TMA has attempted to present materials that are accurate and useful, some material may be outdated and TMA shall not be liable to anyone for any inaccuracy, error, or omission, regardless of cause, or for any damages resulting therefrom. Any reliance you place on such information is strictly at your own risk. We disclaim all liability and responsibility arising from any reliance placed on such materials. Any forms are only provided for the use of physicians in consultation with their attorneys.  You should not rely on this information when dealing with personal legal matters; rather legal advice from retained legal counsel should be sought. 

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