One-Quarter of Small Practices Say They Could Close in a Year

More than one-quarter of physicians with ownership in small practices say they could foresee closing their practices in the coming year, data from an MDLinx survey revealed.

In a survey of 254 owners of practices with 10 physicians or fewer, 26.4 percent reported concern over the current financial environment. Physicians reported needing to cut personnel and services (49.1 percent), using personal savings to cover operating expenses (22.8 percent) and taking out loans to cover operating expenses (20.1 percent).

Based on poll data, the size of a physician's work environment appears to have a distinct impact on that physician's financial outlook, said MDLinx chief marketing officer Stephen Smith. Among small practice owners, 31.7 predicted that 2012 would be one of their worst earning years, while only 13 percent of physicians at larger practices or hospitals reported a similar forecast.

According to one physician survey respondent, "The general trend is lower reimbursements and higher overhead costs including payroll, overhead, business and insurance costs. Small practices may become extinct if this trend continues."

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