What Do Physician Business Owners Think About the Business of Healthcare?

Araliya Valuation Consulting (AVC) surveyed over 1,000 physician business owners to find out their perspective on current healthcare environment, in business context. Based on responses from more than 450 healthcare business owners, about 32 percent of physicians say their overall outlook on healthcare environment in business context is optimistic or somewhat positive, while the majority, approximately 55 percent, have a negative outlook. According to First Research publication (Healthcare Sector, NAICS Code: 62XXX), revenues for the US healthcare are forecasted to grow at an annual compounded rate of 6 percent[1].

[1] Dun & Bradstreet First Research Industry Profile: Healthcare Sector NAICS Code: 62 as of 10.22.2018 (most current data available)

Most survey respondents, 57 percent, indicated they believe their practice significantly outperforms or performs somewhat above average in comparison to other practices within the same specialty. About 26 percent of the participants said they believe their practice is average and 9 percent of practice owners believe their practice is performing below or significantly below average.

On business value, majority physician business owners feel confident they have a good idea what their practice is worth. Also, responders pointed out that the primary value drivers for their practice are the following: strong relationships with their patients and employees, followed by high growth potential and strong financial results.

The most important and primary concerns for physicians as they relate to their practice are: growing their revenues, reducing operating costs and paying down debt. Survey results show that only 2 percent of physician practices focus on investing in new technologies and innovation. Lastly, the survey indicated most physician practices are sole practitioners and do not have a business partner.

Nataliya KalavaNovember 13, 2018