Independent Medical Practice Stats: Is Private Practice Dead? (No, It’s Evolving)

Opening and running your own medical practice can feel like juggling five jobs at once, from dealing with payroll and payers to selecting an EHR and fixing the plumbing. Add to that the all-too-common reality of working in a dated, uninspiring office, and it’s easy to see why many doctors feel overwhelmed. But despite the hassles, the rewards of private practice—greater clinical freedom, flexible scheduling, and significantly higher income potential—continue to draw physicians toward independence.

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Independent Medical Practice Stats: The Current State of Independence

It’s no secret that practice consolidation is becoming increasingly common.

·      More than ¾ of US doctors are employed by health insurers, private equity, or other corporate entities

·      2020 was a major turning point as the first year that a majority of physicians worked outside physician-owned practices

·      Between 2012 and 2022, there was a significant drop in the share of physicians working in private practice from 60% to 47%

And, while owning and operating a private medical practice can be immensely rewarding, it’s not without its hassles. From managing administrative burdens to navigating the ever-evolving landscape of healthcare regulations, many physicians find themselves spending more time on paperwork than on patient care.

And outside of patient care, the day-to-day operations and financial management add significant layers of complexity. Independent practitioners are responsible for a wide range of costs, including overhead, staffing, billing systems, lease agreements, compliance, and IT infrastructure…the list goes on.

Recruiting and retaining qualified clinical and administrative staff can also be a significant burden. Without the deep pockets and HR infrastructure of large health systems, private practices often struggle to compete for top talent, especially in competitive markets. These operational and financial demands have driven many providers to seek employment with hospitals, where risk is lower, but autonomy and, in many cases, happiness are sacrificed.

And, of course, there are the increasing complexities of modern healthcare as a whole. Independent practices are facing pressures from declining reimbursement rates and complex payer negotiations. As large hospital systems and corporate healthcare entities gain more market share, they often secure better reimbursement contracts, leaving smaller practices at a disadvantage. This consolidation trend not only intensifies competition but also makes it harder for independent providers to maintain financial viability.

Independent Medical Practice Stats: The Benefits of Independence

On the flip side, owning your own practice can be incredibly rewarding…

93% of independent physicians report feeling that their job holds valuable advantages compared to their employed peers.

Despite the challenges, ownership remains a compelling choice for many clinicians. Independence enables providers to shape the culture of their practice, tailor care delivery to meet patient needs, and make informed strategic decisions without bureaucratic interference.

72% of doctors in private practice cited “autonomy and control over how I practice medicine” as the primary benefit of independence.

Financially, while startup and operational costs can be high, successful independent practices often yield higher earning potential over time. Owners build equity in their businesses, have more control over revenue cycles, and can make strategic investments in service lines, equipment, or real estate. For physicians seeking long-term stability and wealth-building opportunities, ownership can be a smart path, especially when supported by infrastructure that reduces administrative burdens and burnout.

Independent doctors earn approximately 17% more than employed physicians, and this figure can be even higher (up to 38%), depending on other revenue streams.

Patient relationships also thrive in independent settings, where providers have more time, flexibility, and autonomy to focus on personalized care. Unlike larger systems where physicians may be pressured to meet rigid productivity metrics, independent doctors can prioritize quality over quantity. This leads to higher satisfaction scores and greater trust, which are critical to long-term health outcomes.

Patients receiving care in small, physician-owned practices had 33% fewer preventable hospital admissions than those in larger, hospital-owned practices—a powerful indicator of the value of continuity and autonomy in clinical decision-making.

It’s Time for a New Model for Private Practice

While the challenges of running an independent medical practice are real—from administrative overload to navigating complex reimbursement systems—they aren’t insurmountable. And they certainly shouldn’t be a barrier to doing the work you trained for. Many physicians still deeply value the autonomy, flexibility, and long-term financial potential that independence offers. The good news? You’re not the only one looking for a better way—and a new generation of physicians is proving that there are smarter, more sustainable paths forward. A new approach is emerging—one designed to preserve the freedom of private practice while eliminating the inefficiencies that hold many providers back.

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