After decades of consolidation, private medical practices face a new kind of challenge: sustaining independence in a competitive labor and financial market. The hospital buyouts that once defined the healthcare landscape have slowed, but maintaining autonomy still takes intention and effort.
“That’s where experience comes in,” said Jim Kerns, a management consultant at Scroggins who has spent 35 years advising physicians on the business side of medicine. “Doctors who choose independence tend to be entrepreneurial,” he said. “They want to control how they practice and how they care for their patients.”
Over those decades, Kerns has watched the pendulum swing between consolidation and independence. Hospitals that once acquired practices at a rapid pace, he said, are now feeling financial strain. “They’ve reached a point where they can’t afford to sustain the compensation and support new doctors expect,” Kerns said. “That may push some providers back into private practice—but many aren’t prepared for it.”
Kerns said practices that remain independent tend to share the same foundation—strong fundamentals in a few critical areas.
- Prioritize staffing and culture. “You’ve got to have a great office manager and staff who truly want to be there,” Kerns “Money matters, but loyalty and environment count just as much. People stay where they feel valued.”
- Stay financially sharp. Practices should understand their margins, billing efficiency, and provider- to-patient ratios. “You can’t control reimbursement rates, but you can control operations,” he said.
- Embrace technology. Though costly, technology upgrades are no longer optional. “Patients expect it—online scheduling, reminders, electronic charts,” Kerns said. “If you’re not doing those things, patients may assume your medical skills are out of date.”
- Plan for succession. Recruiting and retaining new providers remains the toughest challenge. “You’ve got to be aggressive about recruitment,” he said. “If you can’t replace those who retire or leave, independence gets harder to maintain.”
Despite the challenges, Kerns said many physicians remain committed to autonomy, and Scroggins’s mission is to help them preserve it. “Our role is to take as much off their shoulders as possible,” he said. “That’s what keeps them independent.”
To learn more about how Scroggins supports independent practices, visit www.scroggins.com or contact our consulting team.
Jim Kerns, Management Consultant
