Understanding The Allure Of A Multispecialty Group Practice
As I was channel surfing the other night, something caught my eye. It was the Discovery channel and I was looking at a huge herd of some hoofed animal. They looked pleasant enough and at peace with the world. Then a lioness came out of nowhere and whacked one of the older animals. Indeed, this particular life and death struggle on the Serengeti reminds me of why a group practice makes so much sense today. That lioness could just as easily have been an insurance company executive and the herd could have been the group practice. In this case, the herd, while homogenous from a species context, also surely contained significant heterogeneity as it relates to the individuals in that group. What was the lesson here? The group, if like-minded, will provide the individuals of that group many benefits including safety in numbers, stability and longevity. After practicing in a multidisciplinary group practice environment in Roanoke, Va., I recently moved back to my home state of California and joined Kaiser Permanente, the largest and most successful non-profit HMO group in the country. In 2002, the California Healthcare Foundation commissioned the California Physicians Survey, which was conducted by researchers at the University of California, San Francisco (UCSF) Center for the Health Professions. The survey found that in California about 20 percent of the primary care physicians and about 15 percent of the specialists worked in the Kaiser Permanente System. They found that these physicians consistently expressed more positive opinions about their medical practice as compared to other independent practitioners. As I noted before, there is safety in numbers. While the Kaiser system is a non-profit, it is regularly discussed among those in the know that if it were in fact a publicly held corporation, it would hold a spot in the top tiers of the Fortune 500. This kind of financial stability can only exist in larger, well-managed practices. When you are a member of one of these entities, you have the benefit of concentrating your energies into patient care with much less time and worry devoted to the actual nuts and bolts of practice management.
What About Compensation?
In general, you will be compensated quite fairly. In fact, most large multidisciplinary groups set up their pay scales based on Medical Group Management Association (MGMA) surveys and other similar compensation surveys. Additionally, most of these group practices offer rich retirement packages, time off without the need to worry about opportunity costs, reimbursement for CME conferences, etc. It becomes clear that joining one of these groups can make solid financial sense. You should also know that many group practices and HMOs now employ some sort of “pay for performance” incentive into your contract. In fact, the New England Journal of Medicine just published a report that found up to 90 percent of physicians in a survey of 252 HMO-based physicians had a pay for performance clause in their contracts.1