Private Practice Or Not: Economic Considerations For The Physician Assistant

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Ronald Needleman



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.  A third practice model to add to the mix is the physician/physician assistant owned practice partnership. This entails consideration of the following:


1)                   Potential salary presently available and its likely growth in the future

2)                   Any investment costs accounting for loss of future interest

3)                   Potential revenue, now and in the future from private practice

4)                   Operating costs attributable to private practice both now and in the future

5)                   Problems related to reimbursement and collection of fees

6)                   Type of practice e.g. size, age, specialty, or  multi-specialty

7)                   Location of practice

8)                   Participation in managed care, HMO’s, etc.

9)                   Income disbursement from the practice or organization


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