The Affordable Care Act
The uncertainty of the Affordable Care Act has caused a profound shift in practice management. Many practices seek refuge in hospital/health system-owned arrangements. Others have been absorbed by larger, privately-held medical practices. Cost management and economies of scale are best achieved by increasing the volume of patients visiting a practice. The three ways a practice can increase volume are through: marketing, acquisition, or consolidation.
To support this increased volume, practices must implement sophisticated and specialized management services and techniques. Physicians and group practice managers must understand the complexity of this new healthcare environment, which is now even more highly regulated. Smaller practices must explore business models that include regional group networks, joint ventures, shared office operations, and other arrangements to gain access to the more sophisticated management resources necessary to remain competitive.