Benefit offerings can help your practice safeguard its autonomy
Many physicians enjoy the autonomy provided by private practices. A 2019 McKinsey survey reported that 79% of small independent practitioners and 67% of large independent practitioners cited autonomy as a major factor in their choice to remain self-employed at a time when physician employment is on the rise.
Autonomy in jeopardy
Unfortunately, safeguarding that autonomy is becoming more and more of a challenge. Independent practices were already fighting for survival before the outbreak of COVID-19, and the pandemic has only made matters worse. In August, the Larry A. Green Center and Primary Care Collaborative reported that, in the past month, 2% of primary care practices had closed and another 2% had begun to consider bankruptcy. The same survey found that 1 in 10 practices in the country were not certain that they would still be viable in four week’s time.
Most agree that one of the keys to keeping independent practices viable is to lessen the administrative burden on medical professionals. A recent MedCity News article stated that, “Regardless of specialty, in today’s world, there is simply no sustainable way for an individual to practice medicine and run their own business while also serving as facility manager, head of procurement, accountant, IT support, EHR administrator, regulatory compliance expert, marketing professional, HR and payroll specialist, coding and billing expert, and the man or woman who fixes the fax machine. Yet most independent practice requires some or all of those roles to be filled by medical doctors, and the proportion of a doctor’s time devoted to the simple joy of practicing medicine is increasingly encroached upon.” This situation often contributes to burnout, increasing the odds that physicians will leave their practices and turn to employment arrangements in order to be able to focus on practicing medicine.
Retirement benefits: A hidden opportunity
It’s also key for independent organizations to seek out ways to reduce costs. Examining your retirement benefit offerings may reveal cost-saving opportunities while also decreasing the administrative burden on your physicians.
Cost of administration
In the past few years, innovations and market forces have decreased the cost of administration for retirement plans. Plans that are more than 5 years old should be reviewed given that their associated costs could be unnecessarily high.
The time it takes to administer retirement benefit plans is one of the largest administrative burdens practices face. Unnecessarily complex plan designs can weigh down practices and add undue stress. Finding the right partnership can help reduce complexity and minimize administration time for practices and practice managers.
How we can help
MaxWorth can help practices by reviewing their existing retirement plans for cost-saving opportunities. We can also identify opportunities for improvement in efficiency, compliance, participation, and performance. Our experience in the healthcare industry gives us a unique understanding of the retirement planning needs of healthcare professionals as well as the needs of their organizations. We believe the best benefit programs are the ones that can satisfy the needs of all stakeholders.
If you’re interested in learning more about how we can help you review your retirement benefit offerings, feel free to reach out to one of our consultants.
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