Which of the following is least likely to be an advantage of solo practice?

a. Autonomy of decision-making.
b. More direct linkage between effort and reward.
c. Maximized personal compensation.
d. An extra-wide parking space.

The correct answer is (d) unless you drive a very large vehicle. Solo practice can offer you a number of advantages, including the ability to:

• Make your own decisions. As the sole owner, you’re solely in command and can do almost anything you wish, within the bounds of law, ethics, and propriety. Of course, that can be both a good thing and a not-so-good thing, depending on your judgment and skill as a business owner.
• Make quick decisions. Since you’ll have no one to argue with, you’ll be able to respond immediately to issues and opportunities as they arise.
• Tailor the practice to your personal needs and preferences. This allows you to customize processes and schedules to maximize your efficiency and convenience, and create a practice that truly reflects your interests and priorities.
• Enjoy a direct link between effort and reward. Although maximizing your efficiency and production may translate into maximal profitability, establishing a strong and prominent practice can prove quite satisfying too.
• Maximize personal compensation. In most cases, solo practice allows lower overhead and provides a higher level of compensation compared with group practice.
• Avoid much of the contention and dissonance of group practice. Since you’ll be the sole decision-maker, you’ll be able to avoid the interpersonal conflicts, arguments over policies (such as income distribution), and other matters that often intrude in a group practice.

Despite all that, solo practice is not for everyone and is often accompanied by various challenges such as:

• Financial risk. This risk may be manifest in different ways but most will be connected with the practice’s reliance on you as the sole revenue producer. The better you do, the better the practice does. Of course, if bad things happen to your productivity, the practice will be directly affected. As a result, you’ll have greater need for insurance to protect the practice’s value if you die or become disabled.
• Time requirements. In addition to your clinical practice and call coverage burdens, you’ll need additional time to run the business. Sure, you may be able to hire an office manager or bribe your spouse to take care of some of the routine stuff, but you can count on spending much of your evening time on certain things your manager or spouse can’t.
• Changing administrative requirements. In addition to keeping up with your medical education, you’ll also need to stay current regarding tax reporting, labor and workplace regulations, billing and coding requirements, the adequacy of your information systems, the status of your building lease, and other essential matters.
• Larger-scale competitors. If you’re in a competitive market, the larger practices will likely have more facilities, better marketing, more services, and better connections with payer contracts. These advantages can be tough to overcome.
• Succession planning. At some point, you’ll want to redeem the value of your practice, which will require finding a buyer whose finances and timetable match your needs. This issue is one of the more prominent concerns of older solo practitioners.
• Isolation. At times, you may find yourself feeling a bit disconnected from other physicians and struggle to find a peer with whom you can discuss clinical, administrative, or social issues. If you have insecurities about “being out of the loop,” solo practice can be especially difficult. The isolation can become acutely evident if you’re unable to arrange shared call coverage.

As with any practice option, solo practice offers various pluses and minuses. Successful solo practitioners often struggle with the disadvantages but see this model as preferable to the difficulties of practice in a group setting.

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From Future Focus®