Practice
size matters
Governments push for larger groups.
It didn't work in the US so why should it here? The
best size is the size you like best
By David Elkins
Whether physicians like it or not,
most provincial governments are moving toward consolidating
practices into larger and larger groups. Before control
slips away from the profession entirely, it makes sense
to try to determine what the ideal practice size is.
Solo? Two or three doctors? Four or five? Big group?
Just what is best for a medical practice?
The answer is simple, say practice
consultants, there is no general 'right' size. The right
size is the one that's right for the individual practitioner.
Doctors in the US have had considerable
experience with groups of various sizes. In the 90s
the prevailing attitude south of the border was that
bigger is better. HMOs were in their hey-day. 'Economies
of scale' were supposed to offer the best possible care
to the largest number of patients at the lowest possible
cost. It didn't work; administration's attempts to squeeze
costs down caused patient and physician revolts. Services
deteriorated and operating costs, initially lower, climbed
as competition among HMOs for patients heated up and
additional services were added. Insurers balked and
sent premiums skyrocketing. Companies slashed healthcare
coverage and workers suffered. Meanwhile, administrators
� especially those at the top � creamed off huge bonuses
and, in the case of publicly traded outfits, rewarded
themselves with stock options that had no relationship
to performance.
When the bottom fell out beginning
in 2000, regulators and shareholders asked the hard
questions to which they discovered, there were no answers
forthcoming. The battles have now moved to the courts
and US physicians who got caught up in the frenzy are
seeking greener pastures once again in smaller practices.
Downsizing is the order of the day.
DO
WHAT YOU LIKE
So what is the right size for your practice? Solo practice
can be lonely and naturally enough solo-physicians often
contemplate taking on a partner. Doctors stressed by
too many patients take on a partner to reduce the workload.
If the volume's truly there, this may be a good idea
but it might make more sense to take a deep breath and
hire what practice management experts like to call mid-level
personnel. Read: nurse practitioner. Another good reason
to go from solo to partnership is to share weekend and
night coverage. This makes sense too. Still, taking
on a partner involves considerable risk. What if your
patients don't respond to the new medic? What happens
when disputes arise? There aren't easy answers. If your
practice has grown too big for one, a better alternative
� if you can manage it � might be stop to taking new
patients and to reduce the current number.
How about going from two doctors
to three? A partnership of two FPs in Regina did just
that in 1997. The patient volume was there and the doctors
were tired of being on call every other weekend. The
new partner, a newly licensed female GP graduate from
the University of Saskatchewan, fit right in. She bought
her way into the practice over five years by gradually
increasing her income share from 60% to 100%. With a
young woman on board, there was some shifting of existing
patients between physicians. New patients liked the
choice of physicians the practice offered. The increase
in practice size could still be handled by one on-call
doc, which meant one weekend on in three instead of
every other week. Last year they considered adding a
fourth doctor but rejected the idea in part because
the increased patient load would likely mean call duties
every other week, once again.
On the positive side, four-doctor
groups say they like the congeniality of having four
on board. For one thing, this often softens the possible
quandaries and difficult decisions that regularly arise
with the familiar old two-against-one confrontations.
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