Picking up where medical training left off ...
No medical school teaches you how to grow and scale a private medical practice.
The curriculum is designed to produce worker bees for hospitals and insurance companies.
- Financial reimbursement has decreased to a critical level, with Inflation-adjusted income down over 60% in the last five years.
- Bounty hunters, known as UPIC auditors, directly impact nearly 40% of independent practices. They use post hoc data analysis to manipulate claim frequency, using a “suspend-and-grab” approach to payment recovery. They can’t be sued for wrongdoing but get a massive chunk of the recovery.
- Mega malpractice blew away every record previously set among high medical malpractice verdicts in 2023, with 57 medical malpractice verdicts of $10 million or more in the United States; more than half reached $25 million or more. Unfortunately, most malpractice carriers only cover the first $1-2 million, leaving the physician to pay the rest.
- Insurance companies are targeting Independent Medical Physicians. They are using AI to review many claims with no physician oversight. This leaves physicians with an expensive administrative burden to advocate for their patients, while the patient believes the physician’s office is responsible for the inadequate care.
- Physicians are burned out and leaving medicine in droves, and the number of new physicians is growing at the same rate as the population, about 2% per year; yet, hospital administrators have grown by 3,800% since 1970.
- The average insurance-based medical practice profits less than 3% per year, and yet inflation adjusted health care insurance has risen over 80%.
It’s time for doctors to stop feeding the broken monster and start building a practice that allows them to have freedom, make money, and do the work they’re passionate about.
Before making any tough decisions about the future of your practice, let's explore how we can help you turn things around.
Independent Physicians: Unmasking the Hidden Threats to Your Practice's SurvivalIn an era where over 77% of U.S. physicians are employed by corporate entities, independent practitioners face unprecedented challenges that threaten their autonomy and financial viability. Discover the concealed forces undermining your practice and learn how to reclaim control before it's too late.Independent medical practices are under siege, facing relentless pressures that threaten their survival and autonomy. Insurance companies, through a series of calculated strategies, are systematically eroding the independence, income, and quality of patient care that these physicians strive to uphold.The Decline of Independent Practices
The landscape of medical practice ownership has shifted dramatically over the past decade. In 2012, 60.1% of physicians operated within private practices. By 2022, this figure plummeted to 46.7%, marking a 13% decline.This trend is not merely a reflection of changing preferences but a direct consequence of systemic pressures.Aggressive Acquisition Tactics
Insurance companies and corporate entities have intensified their acquisition of physician practices. Between 2019 and 2020 alone, 48,400 physicians transitioned from independent practice to employment under hospitals or corporate entities, with nearly half of this shift occurring after the onset of the COVID-19 pandemic.This consolidation is often driven by financial coercion, leaving physicians with little choice but to relinquish their independence.Financial Strangulation
Insurance companies employ reimbursement strategies that disproportionately disadvantage independent practices. Studies have shown that prices at physician practices rise by 14% after being acquired by a health system, without corresponding improvements in care quality.This disparity not only threatens the viability of independent practices but also drives up costs for patients and the healthcare system.Administrative Burdens
The imposition of onerous administrative requirements further hampers independent physicians. The practice of prior authorization, requiring insurer permission for medical procedures, contributes significantly to frustration, as it often leads to delays or denials of necessary care, creating adverse outcomes for patients.These bureaucratic hurdles divert critical time and resources away from patient care, undermining the very essence of medical practice.Erosion of Patient Care Quality
The cumulative effect of these pressures is a degradation in the quality of patient care. Physicians are compelled to make clinical decisions based on insurance constraints rather than patient needs, leading to suboptimal outcomes. The consolidation of medical practices into larger hospital systems has far-reaching implications for patient care, often resulting in higher costs without corresponding improvements in care quality.The Urgent Need for Action
Independent physicians must recognize the existential threat posed by these systemic challenges. Engaging with comprehensive business solutions designed to increase revenue, reduce costs, and improve operational efficiency is no longer optional but imperative. By adopting strategic measures, independent practices can reclaim their autonomy, ensure financial stability, and continue to provide high-quality patient care.Bibliography
1. American Medical Association. "AMA examines decade of change in physician practice ownership and size." 2022.
American Medical Association
2. Healthcare Dive. "More than three-fourths of doctors are employed by corporations, report finds." 2023.
Healthcare Dive
3. Physicians Advocacy Institute. "COVID-19's Impact on Acquisitions of Physician Practices and Physician Employment 2019-2020." 2021.
Healthcare Finance News
4. AAOS Now. "Independent Medical Practices under Threat: Ways and Means Committee Hearing Highlights Challenges." 2024.
American Academy of Orthopaedic Surgeons
5. The Wall Street Journal. "Clues Left by a Killer Echo Widespread Anger at Health Insurers." 2024.
The Wall Street Journal
6. MedCity News. "As independent practices vanish, experts debate the pros & cons of a consolidated market." 2021.
Empowering Independent Medical PracticesTransform your medical practice with comprehensive business solutions designed to increase revenue, reduce costs, and improve operational efficiency.
Benefits
Transform Your Practice
Revenue GrowthOptimize billing processes and increase collection rates to maximize your practice's revenue potential.
Cost ReductionStreamline operations and identify cost-saving opportunities while maintaining quality care.
Operational Efficiency
Implement smart workflows and automation to improve practice productivity and patient care.
Services
Comprehensive Solutions
Practice Management
Streamline administrative tasks and improve patient scheduling efficiency.
Financial Optimization
Maximize revenue cycles and improve billing processes for better returns.
Operational Workflow
Optimize daily operations and improve staff productivity.
Technology Integration
Implement modern healthcare technology solutions for better care delivery.
Maintaining independence as a medical practitioner in today's healthcare environment is challenging but achievable.With the right support and strategies, you can enhance your practice's profitability, improve patient satisfaction, and enjoy a better work-life balance.At WorkMD, we're committed to partnering with you on this journey.
For business brokers, guiding a medical practice to a successful sale can feel like trying to summit Everest—fewer than one in thirteen ever reach the closing table, leaving even seasoned pros questioning if it’s all worth the climb.Selling medical practices presents significant challenges, often leading to closures rather than successful sales. Business brokers face numerous obstacles in this process, resulting in a substantial number of practices shutting down.
Challenges in Selling Medical PracticesRegulatory Complexities:
The healthcare industry is governed by intricate local, state, and federal regulations. Navigating these legal requirements is daunting, and non-compliance can lead to severe penalties, deterring potential buyers.Financial Constraints:
Many medical practices operate on thin profit margins, making them less attractive to investors. The financial instability of these practices often results in closures instead of sales.
Market Saturation:
The increasing trend of physicians selling their practices to hospitals or private equity firms has led to market saturation. This environment makes it difficult for independent practices to find buyers, often leading to closures.Valuation Difficulties:
Determining the fair market value of a medical practice is complex due to factors like patient loyalty, reputation, and future earning potential. Inaccurate valuations can hinder the sale process, resulting in practice closures.
Decline in Private Practices: Between 2012 and 2022, the percentage of physicians in private practices decreased from 60.1% to 46.7%, indicating a trend towards employment by larger entities. By 2024 the decline resulted in less than 25% of physicians remaining in private practice.Practice Closures: A 2020 survey revealed that 8% of physicians had closed their practices due to financial pressures, equating to approximately 16,000 closures.Impact of the COVID-19 Pandemic: The pandemic exacerbated financial strains, leading to thousands of medical practices closing under stress.The convergence of regulatory hurdles, financial instability, market saturation, and valuation challenges creates a formidable environment for selling medical practices. These factors often culminate in closures rather than successful sales, underscoring the need for strategic planning and expert guidance in the process.
How WorkMD Helps Brokers Turn Struggling Medical Practices into Irresistible OpportunitiesIf you’ve ever stood by, heart in your throat, watching yet another promising medical practice deal crumble at the last minute, you know the frustration, the anger, and the helplessness that comes with it. As a business broker, your job is about more than just running numbers—it’s about guiding owners through their biggest life transition, reassuring would-be buyers, and protecting your own professional reputation. But when the deal cards are stacked against you—outdated operations, shaky compliance, and a buyer ready to bolt—it can feel like you’re fighting a losing battle.That’s why it’s time to consider a different approach. Before you let that next practice hit the open market, tap into the expertise of WorkMD. Instead of feeling like you’re setting potential buyers up for disappointment—or wrestling through hours of tense negotiations only to watch them walk away—imagine bringing them a practice so polished, so operationally sound, and so future-proof that they’re practically begging to sign on the dotted line.
From Liability to Desirability
We’ve all seen what happens when medical practices fall short: patient records in disarray, compliance red flags that spook even the most eager buyer, outmoded billing systems that drag negotiations into the gutter. It’s heartbreaking. You spend months teeing up the deal, only to see prospects vanish as soon as they peek behind the curtain. WorkMD steps in to tackle those head-on, turning deal-killers into compelling selling points.Sweat the Details, Reap the Rewards
No buyer wants a fixer-upper when it comes to healthcare. They want a smooth-running machine, a place where patients thrive, staff are well-trained, and the bottom line is both real and reachable. WorkMD dives deep into the dirty work—streamlining workflows, upgrading technology, standardizing financial reporting—so that when the sale sign goes up, you’re offering something far more valuable than just a stack of charts and revenue figures. You’re offering certainty, stability, and the promise of growth. That’s what buyers pay top dollar for.Faster Closes and Bigger Wins
Too often, deals linger in limbo, fraying nerves and eroding trust. Buyers second-guess themselves, lawyers pore over red flags, and before you know it, you’ve sunk weeks or months into a dead end. By partnering with WorkMD beforehand, you slash the time lost to due diligence nightmares and last-minute deal breakers. Instead, you move with confidence, forging a path to a quicker, cleaner close and, more importantly, a payout that leaves everyone smiling.
Your Reputation Is on the Line
Every deal you broker is a reflection of your skill and credibility. When a promising opportunity turns into a dead-end listing, it’s not just the client who loses out—your standing in the industry takes a hit, too. Show your clients you won’t settle for mediocrity. Demonstrate to potential buyers that you bring top-quality listings, not mediocre promises. Partnering with WorkMD proves you’re the kind of broker who invests in the outcome long before signatures hit the page.Turn the Page on Frustration
If you’re tired of the heartbreak and the mounting disappointment that comes with struggling medical practices, now’s the time to rewrite the story. Work with WorkMD to transform those problem-plagued clinics into shining examples of what a buyer truly wants. Take back control. Spark genuine interest. Close deals on your terms—and walk away with not just your commission, but with your head held high, knowing you’ve delivered real value and real hope to everyone involved.
