Medical Journal Houston Vol. 10, Issue 10, January 2014 | Page 9

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January 2014

Benefits of group practice continue to grow
The third in a series on employment
opportunities for physicians.
Faced with a wide range of social, economic
and political challenges in the marketplace,
a growing number of doctors and healthcare
professionals are deciding there is strength
– and professional advantages – in numbers.
In the modern era, most physicians earn
their living by practicing medicine in one
of three primary employment disciplines:
solo practice, hospital employment or
participation in a group practice. All have
advantages and challenges, but the benefits
of an efficiently coordinated group are
attracting interest and advocates in the
healthcare industry.
“Group practice offers the best of all
possible options at present,” said Dr. Angela
Nunnery, a veteran of family medicine
for 28 years. “Doctors in a group have the
ability to have control over their clinical
practice, but benefit from the support and
shared responsibility of other physicians.”
Medical group practices are typically
alliances of physicians engaged in a
particular medical discipline or a multispecialty group that works together for the
common good. Members can be equity
owners or employees of the group depending
on the organizational structure.
The benefits of a cooperative group effort
are numerous, particularly the financial
benefits. Members can share the cost
burden of administrative expenses, such
as accounting, administration, office

equipment and support staff. Group
practices are also in a better bargaining
position than individuals when it comes
to negotiating contracts and managed care
rates.

Being in a group also provides the potential
for a referral network. Competition exists
in every industry and the medical field
is no exception. Members in a group

treatment options.”
Group practices also provide physicians
with the ability to share the expense of
new technology and medical equipment,
allowing the practice to offer state-of-theart medical devices rather than hold onto
older, outdated equipment until it is paid off
by a single doctor in solo practice. Group
practices can also invest in ancillary services
that can be a source of additional revenue.
Dealing with expenses is important,
especially for new doctors. After completing
medical school and a residency program,
most physicians are deeply in debt and don’t
have the resources to launch and develop an
independent practice.

Group affiliation