While 40 percent of physicians are in practice with less than five physicians, this model may not sustain as healthcare undergoes transformations to value-based care. Additionally, the number of physicians in practice with 25 or more providers increased from 5 percent to 20 percent between 1983 and 2014, according to HuffPost.
Here are four factors driving physicians to larger practices:
1. Younger physicians tend to choose large practices as they more strongly desire predictable income and work-life balance, which also may deter them from pursing business and entrepreneurial responsibilities that solo practice requires.
2. Consolidation is fueling the healthcare market as physicians feel steep pressure to bring in more patients. To meet healthcare's demands, many providers choose to work in larger health systems.
3. Administrative burdens often deter physicians from going into small practices as such practices do not have the sufficient infrastructure to collect and report the data CMS will require.
4. Care coordination is also becoming crucial and requires a higher level of organization and personnel. Small practices often cannot afford a large staff.
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