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Practice Management
Optometric Practice Options
| SOLO PRACTICE |
|
| · Independence · Clinical autonomy · Immediate rewards for efficiency |
· Risk for practice and clinical management · Must develop own patient base · No financial cushion |
| SMALL INDEPENDENT GROUP PRACTICE |
|
| · Greater role in governance than large group · Shared risk and overhead |
· Responsible for colleagues' performance · Less independence than solo · Shared financial losses |
| LARGE INDEPENDENT GROUP PRACTICE |
|
| · More optometrists to spread overhead costs and financial risk · Clinical synergy · Referral opportunities |
· Reduced independence · Reduced governance role · Liability for group financial and clinical performance |
| GROUP PRACTICE MANAGED BY MANAGEMENT SERVICE ORGANIZATION |
|
| · Relief from administrative burdens · Access to management expertise · Access to capital |
· Less control over practice · Less clinical autonomy |
| INDEPENDENT PRACTICE ASSOCIATION |
|
| · Attracts managed care business · Develops referral relationships · Maintains independence |
· You may not be involved in contract negotiation · Shared cost of operations · Expensive to maintain infrastructure |
| PHYSICIAN HOSPITAL ORGANIZATION |
|
| · Attracts managed care business · Shared risk with hospital |
· Hospital usually has control · Some payers resist negotiating with PHOs · May be tied to inefficient hospital |
| EMPLOYEE STATUS |
|
| · Low financial risk · Guaranteed paycheck · Relief from practice administration |
· Limited income growth potential · Little independence or control · Future tied to organization's success |
| PHYSICIAN-OWNED HMO |
|
| · Clinical control · Self-governance |
· Very expensive · Requires compliance with complex regulations |
| SPECIALTY CARE NETWORK |
|
| · Easily marketed · Long-term potential for growth specialties |
· Only attractive to payers if services are needed. |
| MULTISPECIALTY NETWORK |
|
| · Practitioner controlled · Attracts managed care · Referral opportunities |
· Can be difficult to get primary and specialty practitioners to work closely together |
NOTE: Variations and combinations of these and other structures are possible. A business consultant or attorney can help determine which fits your need.