What is Private Practice - and is it right for you? - LAFP | Louisiana Academy of Family Physicians

Is Private Practice Right for You?

Once you’ve narrowed your search to the right geographic location and type of practice you seek, it’s time to find the specific practice that is the best fit for you. As you are exploring options and interviewing, don’t be afraid to ask a lot of questions:

What are the productivity expectations?
How is payment determined?
Will you need hospital privileges?
Are you required to take call?
Will you be required to cover any expenses?
How is the practice structured and what type of clinical support is provided?
How is patient satisfaction and retention?
What is the governance structure?
What sort of marketing will they do to help launch your practice?
Where do they see the practice in one year? three years? five years?

In addition, don’t limit your questions to the people with whom you interview. Also talk to other physicians, the staff and anyone else you meet while you are in that community. What do they see as the practice’s strengths and weaknesses? What is the practice’s reputation in the community? For staff, do they like working there? Why or why not? Are patients generally happy?

Based on all of these conversations, determine if the practice is the right fit and if it provides you with opportunities for growth that align with your professional goals.

What Is Private Practice?

Private practice is defined as a practice that is wholly owned by physicians. A private practice can be an exceptionally fulfilling environment for enterprising physicians seeking greater autonomy in their practice of medicine. Owning your own practice also offers you an option to create a practice environment that allows you to provide personalized care for your patients.

If you are ready to explore establishing a private practice, it’s time to start thinking like a CEO. The path to private practice is not without challenges, but a strong foundation can help you overcome any hurdle.

Take a minute to think about your priorities. Rank your priorities and identify potential deal breakers to you to identify your specific needs and priorities when deciding to enter into private practice. Use the Career Planning Self-Assessment as a guide.

Understanding Practice Settings

There are a variety of private practice models to consider when choosing to enter into private practice. Each has advantages and disadvantages. Flexibility and autonomy are some of the key advantages of private practice.

Figure 4. Forms of Payer Contracting and Payment Models

Focus areas to consider are:

Clinical medicine (seeing patients)
Education (teaching medical students and trainees)
Research
Health system administration or leadership
Patient community engagement (promoting health equity, community and public health, and patient education)
Professional community engagement (participation and leadership in medical societies, organizations, medical staff, and collegial relationships)
Entrepreneurship

Answering the following questions may also help:

How much control do I want over my day?
Am I interested in taking on financial and management responsibilities?
How much financial risk am I (and the people who depend on me) comfortable with?
How much time off do I want? Flexible or part-time schedule; call schedule; coverage?
What is my practice’s mission or affiliation?
How will I earn income? (Compensation, including salary and loan repayment programs)
How innovative and tech-savvy is the practice?

The great variety of private practice options—and their pros and cons—can be broken down in several ways (Table 1). There is no wrong answer; you should base your private practice journey on your individual priorities.

table 1. understanding practice ownership new

Prospective Practice or Partnership

It is important to consider other factors before joining a practice or forming a partnership with other physicians. The new prospective practice/partner and you should have similar ideas, goals, and understanding of how this practice will run. These are a few topics/questions to ask your potential employer, business partner, and yourself. Download Table 2.

table 2. prospective practice or partnership web

Physician Payment and Delivery Models

Even if you don’t want to be involved in day-to-day business decisions, understanding how a practice generates revenue can give you insight into how the business model will affect the way you practice.

Table 3 describes a simplified model for various payment types to help ground your understanding.

Table 3. Considerations for Different Payment Types

Additional Helpful Items

Document Options: View in New Window | Download
Link to external resource: AAFP Practice and Career Guide
Tip: Consider consulting a mentor early.