TD Bank Survey of Medical Professionals Reveals Financial Concerns are Changing the Way Doctors Do Business
According to
Another change: More women are becoming practice owners. While respondents have been in practice for an average of 16 years, 36 percent of women reported owning their practices for less than five years, while 47 percent of men have been in practice for more than 20 years.
When assessing the future, 50 percent of doctors surveyed either have or would consider purchasing, buying into, merging or selling their practice. Among these medical professionals, 73 percent expected to do so within the next four years. Why make such a change? Forty-six percent of respondents explained that it's simply too expensive to run a practice today.
"We are seeing a growing trend of more healthcare providers buying into practices with a partnership or purchasing an existing practice because they are seeking added financial security and well-established businesses," said
Financial Trends and Practice Management Concerns
In general, medical practices are growing, with 43 percent of respondents expecting to increase revenue over the next two years. Of those surveyed, women (56 percent) and Millennials (75 percent) are most optimistic about expected revenue growth. The most popular methods for financing the needs of a practice — including new equipment, computers, practice management software, practice acquisitions and practice buy-ins — are lines of credit (41 percent) and cash (36 percent). While Millennials (53 percent) are most likely to prefer using a line of credit, Baby Boomers (40 percent) use cash to finance their needs and Gen Xers are more likely to use credit cards (31 percent).
When asked about investing in the next few years, medical practitioners noted the following as priority areas to which they anticipate committing capital spending:
- Buying or leasing new technology – 48 percent
- Hiring more staff – 33 percent
- Training and education – 26 percent
Among their current biggest challenges, physicians named receiving timely reimbursements from insurance providers (52 percent); managing overhead costs such as supplies and rent (51 percent); and keeping up with technology (35 percent). Generationally, Millennial medical practitioners stated one of their greatest concerns is staffing and hiring as they build their practices, while Baby Boomers named new technology (41 percent). Others are concerned about the approaching national elections, with 56 percent of medical professionals very or extremely concerned about the election's implications on the healthcare industry.
Retirement Plans
As with most
A majority (56 percent) of medical professionals expect partners or colleagues to take over the business when they retire, while 19 percent will sell their practice and 14 percent anticipate simply shutting their doors. Fifty-five percent of physicians also expect retirement to be a gradual transition during which they will cut back on hours. When asked about their financial future:
- Forty-nine percent of physicians report they are extremely or very financially prepared for retirement.
- Forty-eight percent are extremely or very confident that their practice sale, combined with their savings/ investments, will provide them with enough funds for retirement.
- Male (54 percent) practitioners are more confident than females (37 percent) when it comes to believing that they have enough cash to support their retirement years.
"It is understandable why many near-retirement age physicians plan to cut back on time in the office, but this is not the best strategy," Croft said. "Decreasing hours or patient load can negatively impact practice or partnership value, thereby affecting retirement plans. While most physicians said they are confident they will have enough money to retire, that's not always the reality, and often it is due to the fact that they made changes in their schedule or practice that derailed their plans."
Survey Methodology
About MARU
MARU/VCR&C, formerly the Research & Consulting division of Vision Critical, is a professional services firm dedicated to improving its clients' business outcomes. It delivers its services through teams of sector-specific research consultants that have technology in their DNA, specializing in the use of
About
Photo - http://photos.prnewswire.com/prnh/20160916/408813-INFO
Logo - http://photos.prnewswire.com/prnh/20131120/MM21057LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/td-bank-survey-of-medical-professionals-reveals-financial-concerns-are-changing-the-way-doctors-do-business-300329831.html
SOURCE
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News