What Is the Definition of Private Practice?

Private practice is a term used by professionals who have started their own business in the area of their specialty rather than being employees of a larger company. The types of professionals who pursue a private practice are as varied as reasons for doing so.

Types of Practices

Most individuals who pursue a private practice have attained some sort of professional license. For instance, the Bureau of Labor Statistics claims that most lawyers work in private practices. Other private practices may be made up of certified public accountants, dentists, chiropractors or medical doctors, among other professions.

Advantages

The business reasons for operating a private practice are similar to those of most entrepreneurs. Most often, private practices give the owners more control and better returns for their skills and investment.

Trends

Gardiner Harris recently reported in the New York Times that more and more doctors are moving toward salaried jobs at larger companies, rather than private practices. For younger doctors, this decision is linked to high education debt and the desire for fewer "on-call" hours. For older doctors, the decision is linked to concerns over the costs of converting to electronic health records.

References

• Bureau of Labor Statistics: Lawyers
• The New York Times: More Doctors Taking Salaried Jobs