The Future of Private Practice: How to Compete in an Evolving Healthcare Market
In today’s fast-changing healthcare landscape, private practices—particularly in fields like physical therapy, chiropractic care, and other outpatient specialties—face mounting pressure from larger healthcare systems, shrinking reimbursement rates, and rising operational costs. The path to not just surviving, but thriving, lies in adopting new models of care, embracing technology, and running practices like high-performance businesses.
As someone who built a successful multi-location physical therapy practice, helped scale it to 100 clinics across 15 states, and now advises private practices across the country, I’ve seen firsthand what works and what doesn't. Here’s how small and mid-sized practices can successfully compete in this evolving market.
1. Understanding the Emerging Landscape
a. The Rise of Value-Based Care
Value-based care (VBC) focuses on patient outcomes rather than services rendered. Payers are shifting away from fee-for-service, meaning providers must prove value—not just volume.
What to Do:
Track outcomes and satisfaction scores consistently.
Invest in documentation tools that align with VBC metrics.
Train staff to deliver care that’s both effective and efficient.
b. Direct-to-Consumer Healthcare Models
Patients are acting more like consumers. They expect convenience, transparency, and choice.
What to Do:
Improve online presence—your Google reviews, SEO, and website can make or break you.
Offer transparent pricing and flexible scheduling.
Add services patients value (e.g., wellness programs, telehealth, performance therapy).
c. Telehealth Integration
The pandemic accelerated telehealth adoption. It’s now a permanent fixture in many practices.
What to Do:
Use telehealth for initial consults, follow-ups, and post-discharge check-ins.
Implement Remote Therapeutic Monitoring (RTM) to improve outcomes and bill for remote care—I've helped clinics roll this out with pre-planned workflows to avoid operational chaos.
Integrate with your EMR to streamline documentation and billing.
2. Competing Against Hospital Systems and Corporate Giants
Large hospital systems have scale, but they lack agility. Private equity-backed groups have capital, but often struggle with culture and patient experience. You can win on nimbleness, authenticity, and personalization.
a. Differentiate with Patient Experience
You don’t need a bigger budget—you need a tighter operation. Patients stay when communication is clear, service is personal, and care is consistent.
Tactics that work:
Use a cancellation prevention script to reduce no-shows and reinforce commitment to care.
Survey patients and lean into what they love about your clinic, then push that message in marketing.
Create consistent production standards aligned with clinical excellence, not just volume.
b. Focus on Operational Precision
Big groups may have protocols, but they often lack follow-through. You can create a tighter ship by:
Breaking your practice into key divisions (Front Desk, Financial, Clinical, Marketing, etc.)—assigning each a measurable product.
Tracking KPIs weekly, benchmarking against national standards, and addressing red flags early.
Using systems, not guesswork, to solve problems. No more “winging it.”
3. Strategies for Revenue Growth and Efficiency
a. Maximize Existing Revenue Streams
You don’t need more patients—you need better monetization and retention.
Steps to take:
Audit payer contracts. I’ve negotiated up to 57% rate increases by proving value through outcomes and operational excellence.
Add cash-based services like recovery programs or wellness assessments.
Educate staff on how to generate internal referrals and secure online reviews to grow organically.
b. Streamline Workflows and Reduce Waste
Time is your most valuable resource. Wasted minutes = wasted money.
Use your EMR’s reporting features to eliminate unnecessary admin tasks.
Train staff on cycle completion—a major contributor to clinician burnout is too many “open loops”.
Adopt scheduling strategies that optimize clinician utilization without overloading them.
c. Expand Thoughtfully
If you’re scaling to multiple locations, don’t assume volume will fix your margin problems. Poor systems just get magnified. Build scalable SOPs and train your team before expanding.
4. Enhancing the Patient Experience
Patients return where they feel valued and where progress is measurable.
Key tips:
Standardize communication across all touchpoints: intake, treatment, follow-up, and discharge.
Ensure clinicians understand frequency matters—if patients aren’t coming in regularly, outcomes suffer.
Reinforce the treatment plan with clarity and passion. Your team needs to “sell” recovery, not just deliver it.
5. Leveraging Technology and Innovation
You don’t need to be “tech-savvy,” but you do need to be tech-strategic.
a. EMR Optimization
Run weekly reports to measure clinical productivity, front desk efficiency, and no-show rates.
Identify leading indicators of trouble (e.g., eval-to-follow-up ratios) and address them early.
b. Start Smart With New Services
When implementing something like RTM or new equipment, map out every step before launching. I’ve guided practices through these shifts with step-by-step roadmaps, saving time and minimizing disruption.
6. Building a Practice That Runs Without You
If you’re still “in the trenches” every day, you don’t own a business—you own a job. True business ownership means freedom.
Steps to transition:
Document SOPs for every department.
Set KPIs that align with your personal and financial goals.
Hire and train leadership layers so the business doesn’t rely on you.
The goal is to create a practice that serves you—not one that traps you.
Final Thoughts: Think Like a CEO, Not Just a Clinician
The future of private practice belongs to those who combine clinical excellence with strategic execution.
You can’t compete on cost with hospital networks. You can’t out-market massive PE-backed groups. But you can win by:
Delivering a better patient experience.
Running an operation that’s tighter, more focused, and more personal.
Using your size as an advantage: you’re agile, adaptable, and authentic.
Whether you're in year 2 or year 20, the time to evolve is now.
At AG Management Inc., we help private practice owners—like you—get clear, get organized, and get results. We provide coaching and consulting rooted in real-world success, from single clinics to 100-location expansions.
Ready to compete at a higher level?
Let’s build the practice of your dreams.
