I am a new psychiatrist employed by a hospital based practice in and outpatient, I have an opportunity now for a solo private practice in a good size community without a psychiatrist, I am excited about it but at the same time affraid that changing Jobs might mean a pay check cut as I hear about the problem with managed care, other insurances, and the problem with the not collectible billings from other psychiatrist in private practice, how accurate those problems and their affect on the profitability in a private practice and if they acctualy lessen the diffrances between it and the employment job money wise?
I can't really offer too much advice on this question. I think you are going to have a tough time knowing what to expect prior to getting started and doing the work. Is someone recruiting you out to this community? If so, perhaps they want to guarantee you a salary for 2 years.
I am guessing a lot will depend on the payer mix of where you will be practicing. If they are all uninsured people, you are going to have a rough time. As for collections, I would think that you could hire a business manager who has experience in these matters - but then you have to pay the business manager.
The only private practice opportunities I looked at involved me being offered a percentage of collectibles - but they weren't solo practices, so they could estimate about how much work I'd have to do to generate a certain amount of collectibles, etc. They were also willing to guarantee a first year salary to allow time for my collectibles to catch up and support me.
Obviously, on your own will be exactly that. Of course, the upside potential is probably much, much more than someone in a group practice in a bigger city.
Thank you, in fact the hospital in that community is willing to guarantee my salary for one year if I sign a contract with them to stay in the area for three years. There is no inpatient work, it seems to be mostly outpatient, some consult for the small community hospital, and Nursing homes. and I will be the only psychiatrist in the county of 30k.