Private Practice Or Not: Economic Considerations For The Physician Assistant
Authors: Needleman Ronald 
Published: February 2016

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.6in 0pt 0.5in; mso-pagination: none;"><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">The purpose of this article is to review the role that economics plays in the decision-making process for the Physician Assistant (PA) in terms of the type of practice to pursue. Critical to the decision of a new Mid-Level Professional whether or not to enter into employment in a private practice or hospital/clinical based assignment, is research into the long term economic consequences.<span style="mso-spacerun: yes;">&nbsp; </span>A third practice model to add to the mix is the physician/physician assistant owned practice partnership. This entails consideration of the following:</span></span></em></p><p class="MsoNormal" style="text-align: justify; margin: 0in 0in 0pt; mso-pagination: none;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">&nbsp;</span></span></p><p class="MsoNormal" style="text-align: justify; text-indent: -0.5in; margin: 0in 0in 0pt 1in; mso-pagination: none; mso-list: l0 level1 lfo1;"><span style="font-family: Times New Roman;"><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><span style="mso-list: Ignore;">1)<span style="font: 7pt &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span></em><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;">Potential salary presently available and its likely growth in the future</span></em></span></p><p class="MsoNormal" style="text-align: justify; text-indent: -0.5in; margin: 0in 0in 0pt 1in; mso-pagination: none; mso-list: l0 level1 lfo1;"><span style="font-family: Times New Roman;"><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><span style="mso-list: Ignore;">2)<span style="font: 7pt &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span></em><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;">Any investment costs accounting for loss of future interest</span></em></span></p><p class="MsoNormal" style="text-align: justify; text-indent: -0.5in; margin: 0in 0in 0pt 1in; mso-pagination: none; mso-list: l0 level1 lfo1;"><span style="font-family: Times New Roman;"><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><span style="mso-list: Ignore;">3)<span style="font: 7pt &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span></em><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;">Potential revenue, now and in the future from private practice</span></em></span></p><p class="MsoNormal" style="text-align: justify; text-indent: -0.5in; margin: 0in 0in 0pt 1in; mso-pagination: none; mso-list: l0 level1 lfo1;"><span style="font-family: Times New Roman;"><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><span style="mso-list: Ignore;">4)<span style="font: 7pt &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span></em><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;">Operating costs attributable to private practice both now and in the future</span></em></span></p><p class="MsoNormal" style="text-align: justify; text-indent: -0.5in; margin: 0in 0in 0pt 1in; mso-pagination: none; mso-list: l0 level1 lfo1;"><span style="font-family: Times New Roman;"><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><span style="mso-list: Ignore;">5)<span style="font: 7pt &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span></em><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;">Problems related to reimbursement and collection of fees</span></em></span></p><p class="MsoNormal" style="text-align: justify; text-indent: -0.5in; margin: 0in 0in 0pt 1in; mso-pagination: none; mso-list: l0 level1 lfo1;"><span style="font-family: Times New Roman;"><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><span style="mso-list: Ignore;">6)<span style="font: 7pt &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span></em><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;">Type of practice e.g. size, age, specialty, or<span style="mso-spacerun: yes;">&nbsp; </span>multi-specialty</span></em></span></p><p class="MsoNormal" style="text-align: justify; text-indent: -0.5in; margin: 0in 0in 0pt 1in; mso-pagination: none; mso-list: l0 level1 lfo1;"><span style="font-family: Times New Roman;"><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><span style="mso-list: Ignore;">7)<span style="font: 7pt &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span></em><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;">Location of practice</span></em></span></p><p class="MsoNormal" style="text-align: justify; text-indent: -0.5in; margin: 0in 0in 0pt 1in; mso-pagination: none; mso-list: l0 level1 lfo1;"><span style="font-family: Times New Roman;"><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><span style="mso-list: Ignore;">8)<span style="font: 7pt &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span></em><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;">Participation in managed care, HMO&rsquo;s, etc.</span></em></span></p><p class="MsoNormal" style="text-align: justify; text-indent: -0.5in; margin: 0in 0in 0pt 1in; mso-pagination: none; mso-list: l0 level1 lfo1;"><span style="font-family: Times New Roman;"><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><span style="mso-list: Ignore;">9)<span style="font: 7pt &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span></em><em style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;">Income disbursement from the practice or organization</span></em></span></p>