CHERRY HILL, N.J., Jan. 14, 2019 /PRNewswire/ -- Medical
practitioners are optimistic about their practices' finances but
remain concerned about the impact of politics on the American
healthcare industry, finds a survey released today by TD Bank,
America's Most Convenient Bank®.
According to TD Bank's Healthcare Survey of U.S. doctors in the
medical, dentistry, veterinarian and ophthalmology fields, most
independent medical offices remain small businesses, with 46
percent being solo practices and 78 percent of all practices (solo
and those with partners) operating in just one office location.
Investing in Growth
Medical practitioners are positive
about their growth prospects, with nearly three-quarters expecting
practice revenue to rise over the next two years. Female medical
professionals and practitioners under the age of 50 report the most
optimism, with 81 percent and 89 percent, respectively,
anticipating revenue increases.
Higher revenues will not come without investments that create
efficiencies and expand patient bases. Independent practitioners'
largest anticipated financial expenditure in the next five years is
equipment financing (45 percent), with physical expansion,
relocation or renovation (19 percent) a distant second. The most
popular anticipated method for funding these needs is cash (45
percent), followed by a line of credit (34 percent) and credit
cards (27 percent).
There are obstacles to expansion, however. Medical practitioners
named cost (41 percent) as the leading barrier to growing and
expanding their practice, followed closely by patient demand and
reimbursement levels (both 40 percent).
Future Financial Strategies
When assessing near-term
strategic plans, 74 percent of doctors anticipate purchasing,
buying into, merging or selling their practice, and soon – 34
percent expect this to happen within the next four years, while 29
percent said they will pursue one of these options in the next five
to 10 years.
Independent medical practitioners also are developing long-term
plans, especially for succession and retirement:
- 37 percent of survey participants stated partners or colleagues
will take over their practice or buy out their share when they
retire.
- 29 percent said their practice will be sold through a
transition specialist or broker.
- When thinking about retirement, 42 percent would prefer to cut
back on hours for a slow transition instead of retiring
outright.
Respondents also expressed confidence in their financial
preparedness for retirement. Eighty-six percent of doctors believe
they are financially ready, and nearly all (89 percent) said they
expect sale of their practice to provide at least a portion of
their retirement fund.
"Valuations of practices can vary from year-to-year due to
ever-changing factors such as the economic environment, area
demographics, number of active patient records, and practice
production and profitability," said Dan
Croft, Head of Healthcare Practice Solutions at TD Bank.
"Although it is nice to think about tapering off work before
retirement, that may lower a practice's sales price, as valuations
are typically focused on the last 12 months of production and net
income."
Political Landscape Brings Challenges
When asked to
name their top three obstacles to operating a practice, respondents
reported the following challenges: overhead costs (63 percent);
growth/new patient acquisition (48 percent); and private insurance
reimbursement (45 percent).
The majority (70 percent) also are concerned that the new
Congress will make changes to the healthcare system. This is a
significant jump from the 52 percent of doctors who had such
concerns before the 2016 election. When asked which specific issues
lawmakers should address, respondents named:
- Repealing/overturning the Affordable Care Act (37 percent)
- Increasing regulations on the medical insurance industry (33
percent)
- Enhancing the Affordable Care Act (30 percent)
"Given the uncertainty within the broader U.S. political climate
and continued scrutiny around healthcare policy, it is not
surprising that practitioners have heightened concerns about
healthcare legislation and insurance reimbursement," Croft said.
"Potential changes to both Medicaid eligibility and benefits mean
doctors need to develop a broader base of collection sources,
including fees for service, membership plans and private/commercial
insurance payors, in order to avoid a heavy concentration in public
reimbursement sources."
Survey Methodology
TD Bank conducted an online study
of 360 physicians, dentists, optometrists and veterinarians that
spend any time in an independent solo, group or multi-specialty
practice with five or fewer medical professionals. Respondents were
selected by ENGINE from a volunteer group. The survey was conducted
Oct. 3-14, 2018.
About ENGINE
Engine is a data-driven marketing
solutions company. Powered by data, made by people and driven by
results, Engine helps its clients make connections that
count—leading to bottom line growth, business transformation and an
inspired workplace. With global headquarters in New York and 17 offices across North America, the UK, Europe and Asia-Pacific, Engine offers clients a vast
range of marketing solutions—including insights, content,
distribution, data and technology. Find out more at
enginegroup.com/us or follow @Engine_US.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is
one of the 10 largest banks in the U.S., providing more than 9
million customers with a full range of retail, small business and
commercial banking products and services at more than 1,200
convenient locations throughout the Northeast, Mid-Atlantic, Metro
D.C., the Carolinas and Florida.
In addition, TD Bank and its subsidiaries offer customized private
banking and wealth management services through TD
Wealth®, and vehicle financing and dealer commercial
services through TD Auto Finance. TD Bank is headquartered in
Cherry Hill, N.J. To learn more,
visit www.tdbank.com. Find TD Bank on Facebook at
www.facebook.com/TDBank and on Twitter at
www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more, visit
www.td.com.
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SOURCE TD Bank