Starting out in private practice is a rewarding yet challenging journey for young doctors. While many physicians pursue private practice to gain autonomy, develop personal patient relationships, and create a practice that reflects their values, it requires a significant commitment to both medical and business responsibilities. Here’s an overview of what young doctors can expect when they choose the path of private practice.
1. Autonomy and Control
One of the biggest draws to private practice is the autonomy it offers. As the owner, you make the major decisions, from the kind of care you want to provide to the environment you create for your patients and staff.
- Patient-Centered Care: Private practice allows you to create a personalized approach to medicine, spending more time with each patient without the productivity metrics that often come with employed positions.
- Practice Philosophy: You can establish your own protocols and treatment approaches. Whether you want to focus on holistic care, concierge medicine, or specialize in certain types of treatment, private practice gives you the control to shape the experience.
With this autonomy comes responsibility, as you’ll be accountable for everything from patient care quality to the daily operations of your practice.
2. Financial Investment and Risk
Starting a private practice requires a considerable financial investment and brings some inherent risks. You’ll need to plan for expenses that typically include office space, equipment, staff salaries, and insurance.
- Initial Costs: Setting up a practice can require significant funds, sometimes upwards of $100,000. Costs can include renting or buying office space, purchasing medical equipment, and investing in software systems for billing and scheduling.
- Revenue Uncertainty: Unlike a salaried role, income in private practice can fluctuate, particularly in the early months as you build your patient base. It’s helpful to have a financial cushion to handle any lean periods, especially at the start.
- Loans and Financing: Many young doctors rely on loans or financing to start their practice. Securing favorable terms and understanding your repayment options is critical to avoid long-term debt burdens.
3. Business Management Skills
In private practice, doctors are not just clinicians—they are also business managers. You’ll need to handle administrative tasks or hire staff to help, and develop skills that may be outside of your medical training.
- Staff Management: As the practice owner, you’re responsible for hiring, training, and managing staff. Your team will play a crucial role in patient satisfaction and the smooth operation of the practice.
- Billing and Collections: Effective billing is critical for cash flow. Many private practices choose to work with third-party billing companies or hire specialized staff to manage this process. Understanding insurance reimbursement processes and coding will help you ensure that your practice remains profitable.
- Financial Oversight: Tracking expenses and revenue is a must. Establishing a budget, monitoring your cash flow, and planning for tax payments are all important tasks that require close attention.
If these tasks seem daunting, consider working with accountants, financial advisors, or business consultants. They can help you set up systems and provide guidance as you develop your business acumen.
4. Building a Patient Base
Unlike an employed position, where patients are typically assigned, private practice physicians need to build their own patient base. This is a gradual process and often takes time.
- Marketing and Networking: Building a steady flow of patients may require a strategic marketing plan. Networking with local hospitals, joining community groups, building an online presence, and engaging with patients on social media can help attract new patients.
- Word of Mouth and Referrals: For many private practices, word-of-mouth referrals are essential. Focus on providing excellent care and patient experiences to encourage satisfied patients to recommend your practice to friends and family.
- Long-Term Relationships: Private practice allows you to develop long-term relationships with patients, which many physicians find rewarding. Over time, you may even treat multiple generations within families, leading to deep patient loyalty.
5. Administrative Responsibilities
Managing a private practice includes handling day-to-day administrative tasks. In addition to medical care, you’ll need to deal with tasks that may be time-consuming and unfamiliar.
- Compliance and Licensing: Private practices must comply with regulations from bodies such as OSHA and HIPAA. You’ll also need to manage license renewals, certifications, and any other professional requirements.
- Insurance Contracts: Deciding which insurance providers to work with is an important consideration. Some doctors choose to only accept certain insurers, while others go “cash-only” or join a concierge model to bypass insurance altogether.
- Continuing Medical Education (CME): Staying updated in your field is crucial for your practice’s success. Private practitioners need to manage their own CME requirements, scheduling time and budget for professional development.
6. Potential for Higher Income
While private practice requires a significant investment, it also offers greater income potential once you’ve established a steady patient base.
- Income Growth: Once you cover initial expenses and build a patient base, private practice can be financially rewarding. Your income will correlate with your productivity, offering more earning potential than many salaried positions.
- Additional Revenue Streams: Some private practitioners supplement their income by offering specialized services such as cosmetic procedures, wellness packages, or telemedicine consultations.
- Long-Term Asset: Over time, your practice can become a valuable asset. When the time comes to retire or shift gears, you may be able to sell the practice, adding to your financial stability.
7. Work-Life Balance Challenges
Private practice can demand a lot of time and energy, especially in the early stages. Many young doctors find the work-life balance more challenging than in employed settings.
- Longer Hours: Running a practice often means extended hours for both clinical work and administrative tasks. However, as your practice becomes more established, you may have greater flexibility in setting your schedule.
- Personal Sacrifice: The first few years in private practice can be demanding, and it’s important to manage your time and energy to avoid burnout.
- Flexibility Over Time: Once your practice is established, you may have more control over your hours. Some private practitioners even hire additional physicians to reduce their own workload or expand services.
Final Thoughts
Starting out in private practice can be both a challenging and fulfilling path for young doctors. While it requires commitment, financial investment, and business acumen, private practice allows for a high degree of autonomy and the potential to create a deeply rewarding career. By focusing on quality patient care, building a supportive team, and seeking guidance in areas outside of medicine, young doctors can develop a successful and impactful private practice.
Written by Pat Brown, MBA