by Jenn Negley, Vice President, Risk Strategies Company
The pressures on healthcare professionals have never been greater. Whether it’s keeping up with evolving regulations, battling prior authorizations, chasing down reimbursements, or managing rising operational costs, maintaining a private practice has become a balancing act for many. It’s no wonder that fewer physicians are running their own practices. In fact, according to the American Medical Association (AMA) Physician Practice Benchmark Survey, only 46% of physicians now deliver care from a fully physician-owned practice.
The personal decision to stay independent
The choice to stay independent is often a deeply personal one, shaped by a variety of factors, such as autonomy, patient focused care, financial pressures, and stress or burnout. Physicians are trained to put patients at the center of care, and for many, the thought of having their practice dictated by non physicians, especially when it comes to patient care decisions or time management, feels untenable.
Concerns about losing control, particularly the fear that financial implications might overshadow the needs of patients often give pause to the idea of transitioning from a small, physicianowned practice to a larger corporate model. At the same time, however, the struggle to keep the doors open amidst declining reimbursements and rising costs is pushing more practices to the brink. As noted by the Medical Group Management Association (MGMA), recent reimbursement cuts have directly impacted the viability of practices that rely on Medicare and Medicaid, which in turn affects their commercial contracts and ability to keep operating.
The growing burden of business operations
Most physicians didn’t enter private practice to run a business, they entered to practice medicine and serve their community. But the reality of running a practice requires attention to countless business operations. From hiring and training staff to handling insurance claims and ensuring compliance, many physicians are finding that the administrative burden is taking a toll on their well-being and job satisfaction.
So, what can physicians do to stay independent in the face of these pressures?
Mitigating the negative aspects of private practice
One of the keys to success in maintaining a private practice is leveraging available resources and expertise. With increasing complexity and costs, more practices are turning to outsourcing as a way to reduce overhead and free up time for clinical work. Outsourcing areas such as billing, HR compliance, and insurance management can lead to significant savings and help alleviate the burden of administrative tasks.
For example, working with an insurance specialist can reduce the practice’s overall insurance spend without compromising coverage or incurring additional fees for the service. These types of expert partnerships can help maintain a focus on what matters most — patient care — while ensuring the practice remains financially viable.
Advocacy and the need for legislative change
In addition to operational changes, advocacy at the state and federal levels is critical to the future of private practice. The MGMA has pointed out the dire consequences of reimbursement cuts, particularly for communities that rely on local, independent physicians. Without legislative action, more practices will be forced to close, leaving patients without access to care.
On the bright side, there’s hope on the horizon. Recently, a bipartisan bill, the Medicare Patient Access and Practice Stabilization Act of 2025, was announced with the potential to increase Medicare payments by 6.62%. This bill is backed by over 150 healthcare associations, and it’s a direct result of advocacy efforts by those who understand the critical need for policy change.
Private practice isn’t dead — yet
While challenges abound, the demise of private practice isn’t inevitable. It’ll take a concerted effort from healthcare professionals, associations, and lawmakers to ensure that independent practices continue to thrive. By staying informed, leveraging expert resources, and advocating for legislative change, we can work together to safeguard the future of private practice.
Take action
If you’re a healthcare professional facing these challenges, don’t navigate this journey alone. Explore the resources offered by organizations like the AMA and the MGMA and consider partnering with experts who can help streamline the business side of your practice. And most importantly, get involved in advocacy efforts that push for the legislative changes we so desperately need. Your practice, and your patients, depend on it.
For more information, please contact Jenn Negley, Vice President, Risk Strategies Company at 267-251-2233 or JNegley@Risk Strategies.com.
