Business Models Large Vs Small Primary Care Practices
Triple Aim, innovation, regulation, certification, cost cutting, and other changes have widened the gap between small primary care practices and large practices for the past 37 years. The treatment of small practices and those that they serve will some day be recognized as discrimination by design. Revenue and Collections The financial design for primary care has been an issue since the 1980s. Stagnant payments, increasing costs of delivery, and increasing complexity represent the Triple Threat to primary care. This threat is most prevalent in the smaller practices. 15% higher payment are common in large vs small practices for the same office codes (Medicare Data 2011). This translates to about $65,000 less payment per primary care doctor. This is shaped by a number of different factors such as being small or rural, not being associated with a hospital, being in the wrong state, and being less organized. Large systems and practices often have 5% annual escalati...