Why Private Practice Is a Smart First Step After Residency

You’re dedicating your life to caring for others. The end of your residency — the culmination of your hard work — is on the horizon. You’re faced with a difficult question.

“What is my next step?”

There are two reasons why that question is hard. With most of your medical education focused on patients, little time is dedicated to career decisions. Secondly, healthcare evolves faster than med-school curricula.

One of those evolutions is the surge of physician employment by hospitals or private equity. Unfortunately, the compromises of these arrangements are seldom discussed, leading physicians to make life-changing decisions without adequate information.

However, another trend is the rise of physician enablement. These partners, including Privia, equip private practitioners with the tools, expertise, and support of a large group, without compromising their autonomy. With this model, you can enjoy the greater flexibility and financial opportunity of private practice.

The Tradeoffs of Three Typical Employment Arrangements

Starting a private practice by “hanging your shingle” was once commonplace for new doctors. In recent years, however, employed physicians have outnumbered their independent counterparts.

In addition to traditional forms of employment — hospitals and academic settings — private equity has increased sixfold between 2012 and 2021. Unlike employment through a private practice, each has its limitations and downsides.

HOSPITALS

• Tight schedules and regulations. You could find your autonomy is hampered in multiple ways. For instance, non-clinical administrators may set patient quotas, limit PTO flexibility, and direct referral patterns.
• Outdated financial incentives. Hospitals’ competitive, stable salaries may appeal to new doctors who are paying off student loan debt. However, as value-based care gains momentum and gives doctors opportunities to earn life-changing bonuses for delivering high-quality care, hospitals may lag behind. Research shows outcome-based incentives account for only five to nine percent of physicians’ payments at health systems.

ACADEMIC INSTITUTIONS

• Research and publication demands. Research and publication demands. Academic physicians tend to earn less on average, although some may see other incentives, such as protected time and tenured tracks. However, advancing your career may be more complex and require time spent on research and publications.
• Career limbo. Caring for patients and managing the responsibilities of a physician while instructing new residents gives you less time to cultivate your unique art of medicine and can make it difficult to find a mentor for your career.

PRIVATE EQUITY

• Competing interests. Investors are looking to maximize their return. Their incentives are financial, not clinical. That often translates to demanding you see more patients for lower pay and with less support from staff.
• New, unproven, and potentially unsustainable. Private equity ownership has skyrocketed in recent years. In these arrangements, doctors may sacrifice autonomy and clash with the profit-driven incentives.

 
At this stage in your career, you need both financial stability as well as the freedom to explore opportunities and exercise the vision of medicine you’ve cultivated over the past several years. In all three scenarios, you’re sacrificing one for the other.

However, there is one arrangement that supports your autonomy and earning potential, and that’s at a private practice partnered with Privia.

The Benefits of Private Practice

That’s not to say private practice — without the support of Privia — isn’t without its challenges. Physicians may struggle to balance patient care, practice operations, administrative work, and value-based care.

Privia’s physician-led model is designed to counter these pitfalls while amplifying the benefits — autonomy, flexibility, uncapped earning potential, tailoring your career — of private practice.

 
Whether you choose to start your own practice or join an established practice with Privia, we support early-career physicians across several key areas.

• Operational. Our expert teams in coding, revenue cycle management, and more are a valuable resource to help you focus on honing your art of medicine.
• Financial. We negotiate fee-for-service and value-based contracts to diversify your revenue streams and ensure you’re fairly reimbursed.
• Flexibility. Privia honors your autonomy, clinically and personally. You can tailor your schedule more easily and take time off to enjoy what you love.
• Mentorship. Privia champions and invests in our community of clinicians. This approach connects you with experienced doctors who have taken — and thrived in — a similar career path.
• Adaptability. Our resources and powerful suite of tools help you navigate the changing landscape, remove the ambiguity of private practice, and chart your journey with confidence.

 
The years after residency are some of the most challenging yet pivotal of your career. If you’re interested in starting your own practice or joining a private practice with Privia, we’re here to help you every step of the way.

Browse our open positions for clinicians and find the practice that’s right for you.