Why Private Medical Practices Are Failing — And What Smart Leaders Are Doing About It
In today’s healthcare landscape, private medical practices are under siege. From soaring overhead costs to crushing burnout rates, the survival of independent clinics is in jeopardy.
We sat down with Jenna Evola, co-founder of a Seattle-based stem cell therapy clinic and Evolve Systems, a boutique growth agency, to uncover why so many private practices are struggling — and how smart leadership, better systems, and bold operational strategies can reverse the trend.
In Jenna’s words:
“I’m watching many doctors seeing into an early death or sometimes maybe just as bad — they’re forced to retire and walk away with nothing.”
From clinics being hospital owned to a decrease in practice ownership from medical doctors, the healthcare industry is at a cross-roads. Doctors receive a robust medical education but how can that help them deal with the challenges in healthcare? One thing is for sure: there will be a significant effect on patient care.
Let’s break down what’s happening behind closed doors in private medical practices — and more importantly, how leaders and medical professionals can protect their teams, their patients, and their business.
The Dark Side of Private Medical Practice
Burnout Is More Than a Buzzword
Burnout among physicians is often discussed, but few grasp its full weight. Private practice doctors today carry dual roles:
Entrepreneur: Managing operations, staff, and financials.
Physician: Delivering top-notch care, with personal liability hanging over every decision.
Jenna described the compounding stress:
“The stress of both being an entrepreneur and also being the all-knowing doctor that never makes a mistake — it’s enormous. And none of us are really talking about it.”
This toxic cocktail of responsibilities has real consequences:
✅ Failed relationships
✅ Financial instability
✅ Substance abuse or health crises
✅ Early retirement or, tragically, physician suicide
The Extinction of Independent Practices
Jenna didn’t mince words:
“We’re at risk as patients of having all of that go away. There are fewer and fewer doctors willing or able to take on the risk of private practice.”
With fewer practices opening due to financial viability, more being sold to venture capital groups, and large institutions scooping up independents, the healthcare landscape is shifting rapidly. The result? Fewer choices for patients — and a rise in impersonal, corporate-driven care.
Why Private Practices are Failing in Healthcare
Outdated Systems and Skyrocketing Overhead
Many private practices still rely on inefficient systems (yes, including fax machines). Rising labor costs, especially in high-cost-of-living areas, are squeezing margins. Jenna shared a striking example:
“In Bellevue, minimum wage jumped from $17 to $24 an hour in just a few years. Some expect $30 an hour just to answer phones.”
Without adapting, overhead will crush these practices.
The Talent Crisis: Front and Back Office Chaos
Too often, staff are stretched thin, managing everything from insurance calls to social media — with no bandwidth for delivering the patient experience that cash-pay clients expect.
“If you don’t have someone picking up the phone or responding within two minutes, they’ve moved on. The people that win are the fastest with the highest standard of customer service.”
Failing to invest in the right people (or systems) at the front desk can tank patient satisfaction — and revenue.
Smart Solutions for Modern Medical Leaders
Embracing Virtual Talent
In today’s high-cost labor environment, virtual assistants (VAs) offer a smart, scalable solution that many private practices overlook. Instead of overburdening your in-house staff — or paying unsustainable wages for tasks that don’t require local talent — VAs can handle essential, repeatable duties at a fraction of the cost.
Jenna shared:
“This isn’t about replacing American staff — it’s about providing them with leverage. It’s relieving them of duties they shouldn’t be doing anyway.”
👉 What can VAs do for a private practice?
Manage appointment scheduling and confirmations
Handle billing and insurance follow-ups
Respond to patient inquiries (via email, chat, text)
Maintain your CRM or EMR with data entry and updates
Support marketing efforts — social media posts, review responses, newsletter setup
Assist with bookkeeping and reporting tasks
For example, Jenna noted that hiring a skilled VA in the Philippines at ~$8/hour can give practices access to professional-level support without sacrificing their bottom line.
In addition, VAs often bring high levels of loyalty and professionalism because the opportunity is significant for them. As Jenna put it:
“I can’t tell you how often they’re telling me, ‘Thank you so much for my paycheck. I just gave it to my grandma for her birthday.’ You’re changing someone’s life — and stabilizing your business at the same time.”
👉 Key benefits:
✅ Lower costs without compromising quality
✅ Reduce burnout for in-house staff by offloading repetitive tasks
✅ Improve responsiveness and patient experience
✅ Scale operations without massive overhead
Shifting to Cash-Pay and Concierge Models
Insurance reimbursements are shrinking — forcing many practices to pivot to self-pay services. But this shift requires a new mindset:
“Now they have to be real business people. They have to understand sales and marketing. Most doctors don’t want to go there — but they have no choice.”
Forward-thinking leaders invest in learning these skills or partnering with experts who can help.
Building Better Systems Before Marketing
Jenna warns against jumping into expensive marketing campaigns without solid operational foundations.
“Reactivity mode is never a good place to make decisions from. Without systems or strategy, practices waste money on marketing that doesn’t work.”
Strong internal processes — paired with strategic marketing — set the stage for sustainable growth.
The Bigger Picture: Why This Matters for Patients
When private practices fail, patients lose access to doctors who truly care — doctors willing to take personal risks to provide the best care possible.
“If we don’t support private practice doctors, all we’ll have left are box-checker doctors who aren’t invested in us.”
This isn’t just a business issue — it’s a public health issue.
How to Protect Your Practice
If you’re a private practice owner or healthcare leader, here’s where to start:
✅ Audit Your Operations
Where are inefficiencies costing you time and money? Are your staff doing tasks that could be outsourced?
✅ Explore Virtual Talent
Consider virtual assistants for billing, scheduling, and admin work to reduce costs and free up your in-office team.
✅ Strengthen Your Systems
Before investing in ads or patient acquisition, get your internal processes dialed in. Speed, service, and structure come first.
✅ Join Broader Business Communities
Step outside healthcare-only circles. As Jenna put it:
“At general business conferences, people are real about their struggles. There’s none of that when it’s just doctors in the room.”
Final Thoughts
The independent private practice model is at a crossroads. But with bold leadership, a willingness to embrace change, and a focus on operational excellence, it can thrive.
As Jenna said:
“Adapt or die. Practices that don’t figure this out in the next couple of years — they’re goners.”
Now’s the time to choose: struggle in silence, or take the steps to secure your practice’s future.
Ready to stop surviving and start scaling your private practice?
If you’re tired of the burnout, the chaos, and watching your margins shrink while doing everything right on paper — it’s time to lead differently.
🎧 Listen to the full episode to hear exactly how smart leaders are turning struggling practices into sustainable, scalable businesses.
📞 Then book a discovery call with Best Practice Strategies — and find out how we can help you implement the systems, staffing solutions, and strategic shifts that today’s healthcare landscape demands.
➡️ Don’t wait until you’re forced to sell, retire early, or burn out completely.
Take the first step now.
[Book your call] and get your practice back on track.
❓FAQ: Private Medical Practices, Burnout, and Business Sustainability
Q1: Why are private medical practices failing?
Private practices are struggling due to high overhead costs, outdated systems, staffing shortages, and declining insurance reimbursements. Many doctors are overwhelmed by balancing clinical care with business operations, leading to burnout and financial instability.
Q2: What is physician burnout and how does it impact private practices?
Physician burnout is chronic stress caused by overwhelming workloads, administrative burdens, and lack of support. In private practices, this leads to poor work-life balance, failed relationships, early retirement, and even physician suicide—ultimately affecting patient care.
Q3: How can virtual assistants help private medical practices?
Virtual assistants (VAs) can handle tasks like appointment scheduling, billing, data entry, and patient communication at a lower cost. This reduces stress for in-house staff, boosts responsiveness, and helps scale operations without increasing overhead.
Q4: What are cash-pay or concierge models in healthcare?
Cash-pay and concierge models allow patients to pay directly for services, bypassing insurance. This gives practices more control over pricing and service delivery but requires stronger business, sales, and marketing strategies to succeed.
Q5: What are the first steps to stabilize a struggling private practice?
Start by auditing operations, outsourcing repetitive tasks (like admin and billing), strengthening internal systems, and avoiding rushed marketing decisions. Join broader business communities to learn sustainable strategies beyond traditional healthcare norms.
