Running a Private Practice in 2025: Financial Health, Risk Management & the Business of Medicine

Running a private practice in 2025 means wearing more hats than ever—physician, business owner, leader, and strategist. With rising costs, complex regulations, and evolving patient expectations, clinical excellence alone is no longer enough.

To truly thrive—not just survive—private practice owners must prioritize financial health and risk management, and know when to bring in expert support to help navigate the road ahead.

🩺 Financial Health: Running a Stronger Practice

1. Revenue Stability Through Diversification

Reimbursements are increasingly unpredictable. To build long-term financial resilience, successful practices are expanding income streams beyond traditional visits:

• Telehealth and remote monitoring (still reimbursable and growing)

• In-house procedures, labs, or specialty services

• Membership or concierge care models

• Partnerships with wellness, nutrition, or ancillary providers

These models help smooth cash flow and reduce reliance on fluctuating payer reimbursements.

2. Inflation and Staffing Pressures

With operational costs on the rise, and staffing challenges continuing to impact care, practices must take a strategic approach to managing overhead:

• Automate or delegate non-clinical workflows

• Benchmark payroll against specialty-specific standards

• Invest in staff retention through culture and incentives

• Analyze ROI by provider and service line

Management consultants can offer objective assessments, optimize staffing structures, and streamline operations—so you stay focused on patient care, not payroll.

3. Data-Driven Decision Making

Thriving practices in 2025 are using real-time analytics to make smarter business decisions. Key metrics include:

• Days in Accounts Receivable (A/R)

• Patient acquisition cost

• Profitability by service or provider

• Operating margin trends

If you lack clear visibility into these numbers, external support can help you assess systems and implement dashboards that provide actionable insights.

⚖️ Risk Management: A Doctor’s Business Imperative

1. Malpractice: Prevention and Protection

In today’s legal climate, malpractice insurance alone isn’t enough. True protection requires:

• Accurate, timely clinical documentation

• Ongoing staff training on protocols and consent

• Regular review of coverage to match practice size and risk

  
  

Consulting teams with clinical risk expertise can help you identify vulnerabilities and implement safeguards before issues arise.

2. Compliance and Regulatory Risk

From HIPAA and billing audits to the No Surprises Act, compliance is no longer a one-time task—it’s an ongoing pillar of stability.

Ask yourself:

• Are you up to date on E/M coding changes?

• Have documentation standards kept pace with payer expectations?

• Are you prepared for an external audit?

A compliance audit or consulting engagement can help mitigate risk, protect your license, and preserve revenue.

3. Cybersecurity Is Patient Safety

As patient data becomes more vulnerable, cybersecurity is now a form of clinical risk management. Key steps include:

• Encrypting all protected health information (PHI)

• Training staff to recognize phishing and data threats

• Investing in firewalls and endpoint protection

• Maintaining cyber liability insurance

A practice management consultant can guide your IT strategy, vet vendors, and ensure your digital infrastructure meets today’s security standards.

🧠 Strategic Consulting: A Smart Investment

Too often, practice owners seek help only in times of crisis. But forward-thinking physicians are turning to consultants proactively to:

• Benchmark financial and operational performance

• Optimize staffing and workflows

• Enhance patient acquisition and retention

• Design scalable, profitable service models

Consulting isn’t about losing control—it’s about regaining control, with strategy and support tailored to your vision.

Final Takeaway: Medicine Is Your Calling. The Practice Is Your Business.

You trained to heal. But in 2025, you're also leading a business. Financial health and risk management aren’t optional—they’re essential.

With the right systems, strategy, and support in place, your private practice can be more than sustainable—it can grow, thrive, and give you the freedom to practice on your terms.

Now is the time to future-proof your practice. Just like medicine, early intervention makes all the difference.

Shanalee Ackerman, RDH, MBA, is founder and CEO of Ackerman Practice Management, a consulting firm that specializes in medical and dental practice management and compliance. She can be reached at Shana@AckermanMgmt.com or by visiting www.AckermanMgmt.com.