BALANCING THE PRACTICE OF MEDICINE AND THE ROLE OF BUSINESS OWNER IS A CHALLENGE FOR PHYSICIANS, ACCORDING TO THE MEDICAL PRACTICE MONITOR BY OPEN FROM AMERICAN EXPRESS(SM)
Physicians Cite Business Management Skills as a Development Need
NEW YORK, November 23, 2004 -- Physicians in private practice are seeking solutions to better balance their role as doctor with that of small business owner, according to the first-ever Medical Practice Monitor by OPEN from American Express, the company's division that focuses exclusively on providing financial products and services for small business owners.
One quarter of physicians overall (26%) describe maintaining the dual role of practicing medicine and running their businesses as “extremely challenging,” and 58% overall describe it as “challenging.” Among the medical specialties surveyed, 32% of oncologists, 26% of rheumatologists, 25% of urologists and 18% of dentists also say managing their roles as physicians and business owners is extremely challenging.
According to the survey, nearly half (43%) of all physicians in private practice report spending the equivalent of at least one full day per week (defined as seven hours) managing their businesses, and 8% say either they or their partners spend the equivalent of at least three business days (21 hours) on practice management. On average, specialists report spending more time on the business of their practices compared to physicians overall. Twenty-four percent of oncologists, 22% of rheumatologists, 20% of urologists and 15% of dentists report that they or their partners spend at least 21 hours per week managing their practices.
According to the survey, many physicians also cite the need to better develop their own business skills, including financial management (74%), business management, including decision-making (68%) and marketing (59%). Nearly all physicians (94%) also agree that it is extremely important for medical students to learn business skills in medical school.
“Physicians in private practice are grappling with the challenge of balancing their roles as physicians and business owners. In fact, nearly one in four say they would not have opened their own medical practice if they fully understood the business challenges of running a practice when they began their careers,” said J. Max Reiboldt, CPA, medical practice management specialist and author of Financial Management of the Medical Practice, a publication written for the American Medical Association. “Cash flow issues are of particular concern to physicians, and they appear to be focused on seeking solutions that will enable them to run their practices more efficiently so they can and ultimately spend more time practicing medicine.”
Managing Practices More Efficiently
Seventy-seven percent of physicians say they aspire to have more time to practice medicine rather than managing the business of their practices. Physicians say they would spend extra time in a variety of ways, including personal recreation (75%), reading more medical literature (60%) increasing their patient load, increasing participation in continuing medical education and medical conferences (tied, 54%) and spending more time with existing patients (51%).
While staffing issues top the list of challenges physicians face in maintaining and growing their practices (66%), they are also particularly concerned about cash flow. Other issues cited as business challenges by physicians include managing malpractice insurance costs and coverage (60%), managing slow third-party reimbursement (57%), and managing accounts receivable (54%). Tactics cited by physicians that would help address these challenges and assist them in running their offices more efficiently include automated medical record keeping (80%), purchasing medical/office supplies online (78%), managing purchases and vendor payments via online accounts (69%) and streamlining vendor payments (67%).
According to the Medical Practice Monitor by OPEN from American Express, credit and charge cards are the most preferred form of payment for medical practice purchases (43% vs. 41% for check and 5% for debit). Among physicians who prefer to use credit or charge cards, 67% say they like the convenience of not having to pay with cash or check; 66% like the to earn rewards (66%) and 35% say plastic enables them to easily manage their accounts online (35%).
Those who prefer credit cards are primarily using them to purchase office supplies (88%), business travel (85%), and continuing medical education (85%). Overall, 72% of physicians report using credit and charge cards for some medical practice purchases.
“Credit and charge cards can be an effective way for any business owner,
including physicians, to help manage cash flow, and the survey found that
many physicians have incorporated them in running their practices,” said
Susan Sobbott, president, OPEN from American Express. “Unlike cash or check,
charge cards offer physicians the spending power they need to make large
purchases for their medical practices, simplified online account management
and the ability to earn rewards for spending on the card.”
To learn more about the benefits of using charge or credit cards for their practices, physicians can visit www.open.americanexpress.com/medical.
Survey Methodology
The Medical Practice Monitor by OPEN from American Express is based on online interviews conducted by Harris Interactive from September 22-October 27, 2004 with a nationally representative sample of 356 medical doctors in private practice (regardless of specialty). Additionally, 106 oncologists, 101 rheumatologists, 100 urologists and 100 dentists in private practice were surveyed. The results have a sampling error of +5% (for the sample of 356) or +10% (for the samples of 100).
About OPEN: The Small Business Network from American Express
OPEN: The Small Business Network is the division of American Express that provides small business owners an enhanced set of products, tools, services and savings designed to meet their evolving needs, including charge and credit cards, convenient access to working capital, robust online account management capabilities and savings on business services from an expanded lineup of partners. To obtain more information about the OPEN Network, visit OPEN.americanexpress.com or call 1-800-NOW-OPEN to apply for a card or loan.
American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking.
