Private Practice

[Dmayor22]

I was wondering if anyone could answer this question for me. How does the whole business of being in a multi-doctor private practice work? People say you always make more in private practice, why is that? Do all the doctors put their money in a big pot and divide it up among themselves or how does that work? And if you were to work in a hosipital setting, how does that work? Thanks for any help.

 

[diabeticfootdr]

I was wondering if anyone could answer this question for me. How does the whole business of being in a multi-doctor private practice work? People say you always make more in private practice, why is that? Do all the doctors put their money in a big pot and divide it up among themselves or how does that work? And if you were to work in a hosipital setting, how does that work? Thanks for any help.

I think the ACFAS practice survey from a couple years back found that doctors in small groups (2-5) made more money than doctors in large groups or private practices.

 

[Dmayor22]

Why is that? How do they manage the practice fininacially that allows them to make more money? Do they all pool their money together or how just how does it typically work?

 

[LaMigra]

Why is that? How do they manage the practice fininacially that allows them to make more money? Do they all pool their money together or how just how does it typically work?

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[LaMigra]

Why is that? How do they manage the practice fininacially that allows them to make more money? Do they all pool their money together or how just how does it typically work?

I could be totally wrong, but I suspect they have the potential of making more money because they refer their patients to eachother. So it's convenient for the patient to only have to go to one place, and convenient for the doctors to not have to work as hard to get referrals from other doctors.
As far as dividing the money up, I suspect they would split the bills, but whatever money they generated would be kept by them. For example, if you had a general dentist and an oral surgeon working together, the oral surgeon will more likely than not make more money, just because his procedures cost more and are more difficult. It wouldn't be fair to the oral surgeon to just split the money 50/50.

 

[scpod]

I could be totally wrong, but I suspect they have the potential of making more money because they refer their patients to eachother. So it's convenient for the patient to only have to go to one place, and convenient for the doctors to not have to work as hard to get referrals from other doctors.
As far as dividing the money up, I suspect they would split the bills, but whatever money they generated would be kept by them. For example, if you had a general dentist and an oral surgeon working together, the oral surgeon will more likely than not make more money, just because his procedures cost more and are more difficult. It wouldn't be fair to the oral surgeon to just split the money 50/50.

I think you also have to take into account the elimination of a lot of overhead nad duplication of services in a partnership. Imagine the costs of running three separate stand-alone offices-- each with it's own staff and operating costs. Then, imagine having a building just a little bigger that shares the same common areas (waiting room, file room, x-ray, lab) and staff. With just the same number of patients you'd come out way ahead.