Economic Considerations

• With an increasing physician shortage in the United States, physicians may choose to practice in any setting. Many physicians choose an equity interest instead of an employee salary. An equity interest allows physicians to maintain a form of ownership and control that has an appreciable interest.
  
  

Single Specialty Groups

• This is the most common and conservative type of business option for physicians. Small single specialty groups may face significant competition from larger groups in the market, requiring physicians in small groups see a larger number of patients.
  
  

Larger Groups

• Physicians who join larger groups typically have more reliable income and less practice management responsibilities. They also may have little control over business decisions. Larger groups are also at greater risk of failure than smaller groups.
  
  

Group Practice Without Walls

• A group practice without walls operates as a single or multi-specialty group, and does not utilize a hospital for support or services. In this type of practice, physician members own the practice and are responsible for practice management decisions. This type of business has been considered attractive because many groups provide ancillary services to generate additional income.
  
  

Physician Hospital Organizations

• A physician hospital organization is a business entity that allows for negotiation with third party payers by the hospital and physician members. In this form, governance decisions may be shared between physician members and hospital administration.