Group medical practices are a great way for healthcare professionals to increase their financial security by employing the economy of scale and dividing administrative costs amongst themselves.

Introduction

Since the 1990s, group medical practices have been increasing in popularity across the healthcare industry. The sudden popularity of group practice is not hard to understand. With increasing healthcare costs, healthcare providers have taken to practicing in groups to receive favorable rates from third-party payers and insurance network providers.

Cooperation between medical professionals can be within one medical specialty or with multiple specialties in multispeciality clinics and group practices. But joining a group practice is a large commitment as healthcare professionals are unable to take their patients with them when leaving a group practice. It is for that reason that many healthcare professionals need to carefully consider whether group practice is the best idea for them. At the same time by combining forces together, processes such as digital marketing for doctors are more effective for group practices.

Benefits of joining a group medical practice

Joining a group healthcare practice can come with a whole host of benefits. Firstly and foremost, by joining a group practice healthcare professionals are able to negotiate better rates for themselves from third-party payers and insurance networks. With rates often being cut to the lowest common denominator, by having the backing of more professionals better rates can be secured. The larger a group practice is, the higher the leverage they have in negotiating better rates.

When two or more medical professionals combine their practice into one, they are also taking advantage of the economy of scale. As administrative, management and advertising costs are consolidated for the practice, the cost per head in the practice comes out to be much lower even if there is a slight increase in costs for the practice. It is not just costs that are reduced by joining forces together, as administrative tasks are pooled together, each member of the practice reduces their administrative burden.

This combination of interests and talents allows members of a group practice to increase their competitiveness, productivity, and satisfaction in the healthcare setting.

Group practices have a greater opportunity for acquiring new patients as they have wider access to the market. Through additional referrals and chances of additional community outreach, group practices can spread messages about their healthcare brand to a lot of newer audiences. The effectiveness of digital healthcare marketing is also higher for group practices.

Another financial benefit of being in a group practice is access to larger capital reserves through pooled investments. This also translates into reduced risk per head for each member of the group practice.

Finally, group healthcare practices lead to higher improved satisfaction and quality of care for patients while offering a higher quality of life and income for healthcare professionals.

Drawbacks of group practice

However, group practices are not the best choice for every healthcare professional. Individuals who enjoy their independence and wish to make decisions on their own may struggle to gel together with other members of their practice. Without effective conflict management skills, whether that’s for a new member or an existing one, group practices can find it hard to exist over the long term.

In a group practice, healthcare professionals are also not at liberty to change or choose their compensation plans on their own. Since income is shared on a pre-determined basis, healthcare providers are not able to have complete control over setting their own rates for their patients and more.

Joining a group practice also means that healthcare professionals will not be able to take their patients with them. When leaving a group practice, a healthcare professional will most likely not be able to take any patients with them since in a group practice a doctor is prone to consulting on many patients that are not necessarily their own or ones that they are familiar with.

But despite all of the negative drawbacks, there are fewer and fewer solo practitioners in the healthcare field. Most newcomers in the healthcare industry are choosing to join group practices or larger hospitals today, for the simple reason that they have greater financial security in a group practice.

Conclusion

Group medical practice is one of the best ways for healthcare providers to use the economy of scale in their favor. They are also able to compete against larger institutionalized and consolidated healthcare organizations. With the size of group medical practices increasing slowly over time, group practices need to start using effective medical marketing ideas to increase their competitiveness and continue growing.

BraveLabs is helping group medical practices leverage their strengths through digital healthcare marketing and more. Through BraveLabs, group practices are able to grow and thrive. Contact BraveLabs to learn more about how your group practice can benefit from digital healthcare marketing.