The 10 Types of Medical Practices

Choosing the right type of medical practice model can shape your career satisfaction and work-life balance. With the healthcare landscape evolving, physicians now have multiple practice models available to fit their professional goals.

This guide provides a comprehensive, people-first overview of all types of medical practices, helping you make informed decisions for your future.

Understanding medical practice types: setting the foundation

It’s critical to thoroughly understand the various medical practice types to determine the best fit for your unique needs, preferences, and work-life balance goals. 

What defines a medical practice model?

A medical practice model defines how your organization operates, including its role, structure, and processes for delivering coordinated patient care. 

It may take medical professionals working together to help patients effectively achieve their health and wellness goals. 

Importance of choosing the right practice type

Choosing the type of medical practice that matches your lifestyle, preferences, specialty, area, and work-life balance requirements is vital. 

Complete an assessment before you open a new practice to establish your local population’s most pressing healthcare needs. 

Exploring types of medical practice models: your career, your choice

Explore the various medical practice models before deciding which is best for your individualized needs. 

1. Private practice

A private practice is a type of medical practice that accounts for nearly half of the physicians delivering patient care. Physician-owned practices are entirely owned by physicians, rather than health systems, physician groups, or hospitals. 

2. Group practice

A group medical practice is owned by two or more physicians who may specialize in different or the same fields. They often share facilities, profits, personnel, liabilities, and legal entities. 

Group practices are often cost-effective and may offer a broader range of expertise and optimal patient care, but you may have less autonomy compared to a private practice.

3. Hospital-based practice

A hospital-based medical practice is owned and operated by a hospital. The hospital employs physicians and other healthcare members who provide patient care in hospital (inpatient or outpatient) settings. 

Hospital-based practices may also employ independent contractors. The work is steady, often offering more financial stability. 

4. Health maintenance organizations (HMOs)

HMOs are managed healthcare insurance plans featuring a specific network of contracted providers that treat patients at fixed, pre-paid fees. They focus on preventive, coordinated care provided at agreed-upon rates for services. 

As a provider, you can contract with an HMO or be employed by them, but you may have more restrictions to abide by and less autonomy. 

5. Direct primary care and concierge medicine

Direct primary care/concierge medicine medical practices use alternative medical practice models and non-traditional payment systems. 

These practices do not submit medical claims to insurance companies; rather, they charge a flat membership fee for a specific set of services. 

Direct care and concierge medicine practices often have a smaller number of patients, allowing more time to spend with patients who have easier access to their medical providers. 

6. Locum tenens practice

Locum tenens often refers to physicians hired to carry on a practice or service for an absent colleague or fill temporary clinical coverage needs until a permanent healthcare provider is hired. 

These positions are typically short-term, independent contract jobs. Locum tenens opportunities may offer higher hourly compensation compared to some salaried roles, though benefits and long-term stability can vary.

7. Integrated delivery systems

An integrated delivery system is a network of organizations and healthcare providers offering a coordinated service continuum to a defined population. 

These networks may include hospitals, physician groups, post-acute services, surgery centers, and sometimes health insurance support. Integrated delivery systems provide a broad spectrum of coordinated care within an organization. 

8. Independent contractor model

As an independent contractor, you work for yourself and contract your services to various healthcare organizations. 

You set your rate and terms, reaping the benefits of high autonomy, but you’ll need to find your own insurance. Taxes aren’t deducted from your paychecks, so you’re responsible for reporting your earnings and paying taxes. 

9. Academic medical practice

An academic medical practice treats patients and partners with academic institutions to train future physicians and other medical providers or conduct new research. Your practice must be accredited to be an official academic medical practice. 

10. Partnership and association models

Medical partnerships and associations are business arrangements between at least two parties with contractual obligations to share profits, liabilities, resources, and responsibilities. 

This arrangement allows partners to serve patients with mutual dependence. Physicians can partner with other physicians, professional corporations, physician groups, or other organizations. 

Medical practice type vs. medical specialty

Medical practice models are distinctly different from medical specialties.

Understanding the distinction

While a medical practice type refers to the characteristics of the practice you establish (private practice, group practice, etc.), including how it’s run, a medical specialty describes the type of medical services you offer. 

Common medical specialties explained

Below is a list of common medical specialties and what they entail:

• Immunology: medical care and prevention of immune system disorders
• Cardiology: diagnosis and treatment of heart and blood vessel disorders
• Dermatology: a specialty focused on diagnosing and treating skin conditions
• Family Medicine: general medical care for babies, children, teenagers, and adults
• Internal medicine: care focused on conditions affecting the internal organs
• Obstetrics and gynecology: practice focused on pregnancy and women’s health
• Oncology: a specialty dealing with cancer diagnoses and treatments
• Anesthesiology: a specialty that uses anesthesia to prevent pain and help patients feel more relaxed or fall asleep before surgery
• Hematology: diagnosis and treatment of blood disorders
• Hospice and palliative medicine: supported, comfortable care for individuals at the end of their life (especially those with severe illnesses)
• Nephrology: diagnosis and treatment of kidney problems
• Neurology: care tailored to individuals with diseases involving the nervous system (brain, spinal cord, and nerves)
• Ophthalmology: diagnosis and treatment of eye diseases and vision problems
• Osteopathic medicine: emphasizes a holistic, patient-centered approach with a focus on the musculoskeletal system and preventive care
• Orthopedics: a medical specialty that diagnoses and treats conditions affecting the musculoskeletal system (bones, muscles, tendons, ligaments, and joints)
• Surgery: encompasses general surgery and specific types of surgeries (plastic surgery, heart surgery, orthopedic surgery, etc.)

The specialty you choose depends on your medical credentials, certifications, interests, and the needs of your local community.  

Why this distinction matters for career planning

Determining which specialty you’re interested in and have the most training in helps guide you toward the most suitable career path. Knowing which healthcare specialties are lacking the most (but needed) in the area near you is also helpful.  

Choosing the right practice model: key factors to consider

Factors to consider when choosing the right medical practice to own or become employed by include:

Financial stability vs. autonomy

Some practice models offer more stability than others regarding financial security. You must determine which goal is the most important when deciding which type of medical practice best matches your unique situation. 

For example, a private practice or independent contractor position offers utmost autonomy but may not always be the most financially secure.

Work-life balance across models

Regardless of your medical practice model, work-life balance is vital to support your mental well-being and professional performance.

Take time for yourself to prevent burnout and spend time with those you love to optimize your overall well-being. 

Career longevity and satisfaction

Choose a practice or career path you enjoy, ensuring workplace satisfaction and career longevity. 

Do you love having a stable salary with a regular schedule and good benefits, or prefer the flexibility of being an independent contractor or having a private practice? These are essential questions to address before deciding on your career path.

Financial risk, insurance, and reimbursement structures

Before determining which medical practice is right for you, consider financial risks, reimbursement structures, and the opportunity for insurance. 

Are you willing to take financial risks to have autonomy and flexibility, or do you prefer stability and a set salary? Do you want to bill insurance companies or receive a set monthly fee for your services?

Emerging trends in medical practice models (2025 and beyond)

Emerging trends in medical practice models include patient-centered approaches, remote care, holistic treatments, and new technologies like telehealth and AI that streamline operations and help practitioners enhance patient outcomes. 

Other trends focus on high-quality patient outcomes vs. volume, and paying monthly fees for services rather than billing insurance companies (concierge medicine). 

FAQ 

Consider the following frequently asked questions about the different types of medical practices.

What is the most financially stable type of medical practice?

While it can be difficult to predict financial stability, hospital-based practices, academic medical practices, group practices, and HMOs often provide more financial stability.

These models may offer structured salary and benefit packages, though income potential may differ from independent practice arrangements.

How does a solo practice differ from a group practice?

If you own a solo practice, you assume all liability, reap all the financial benefits, and have utmost autonomy vs. working in a group practice. 

However, working in a group practice often allows for a broader range of specialty care, with an established patient base and shared liabilities. 

What are the benefits of working in a hospital-based practice?

The benefits of working in a hospital-based practice often include a steady patient base, predictable income, job security, built-in referral networks, career growth opportunities, a stimulating, fast-paced environment, regular schedules, and usually a good benefits package. 

Is direct primary care financially viable for new physicians?

Yes, it can be. However, it may take time for your practice to mature and build a steady patient base large enough to be financially lucrative. 

What should I consider before choosing a locum tenens career?

While locum tenens careers have the potential for high income and flexibility, you may need to travel, work long hours (affecting work-life balance), and be okay with taking on short-term roles. 

How do HMOs impact physician autonomy?

Working with or for an HMO might constrain your decision-making and overall autonomy, requiring you to adhere to specific treatment guidelines.

What are the risks associated with integrated delivery systems?

Risks associated with integrated delivery systems include a potential lack of synchronization among systems, the intense need for effective collaboration and communication across various healthcare settings, financial risk sharing, less autonomy, and a more complex regulatory environment.

How does independent contractor work differ from employment?

Being an independent contractor means you work for yourself with utmost autonomy and have control over how much you charge for services (often a per-hour or per-service fee).

However, you won’t receive a benefits package or salary, and your take-home pay may vary based on the amount of work you receive monthly. Taxes aren’t deducted from your paycheck. 

What is the difference between a medical practice type and a medical specialty?

A medical practice model is the type of practice you run (solo practice, group practice, concierge medicine, etc.). In contrast, a medical specialty is the type of medical care you offer (rheumatology, cardiology, orthopedic medicine, etc.). 

Can I practice multiple specialties within one practice model?

Yes, but it depends on your specific medical credentials (do you possess more than one certification or are you willing to obtain more?) and if you partner with other providers who offer different specialities than you.

What are the risks and benefits of joining an academic medical practice?

There are risks and benefits associated with joining an academic medical practice. Academic institutions provide opportunities to complete research, possess cutting-edge knowledge and skills, have job satisfaction, and receive top-notch benefits (retirement plans, paid time off, etc.).

However, your salary may not be as high, you must be comfortable instructing medical school students, and you might need to fill in patient-care gaps due to resident duty-hour limits. 

How are new practice trends like telemedicine impacting practice choice?

New medical model trends (especially telemedicine and AI) may impact your decision about the type of medical practice you choose. Opportunities to work from home and expand a practice beyond the local community are appealing to many physicians and other providers.

Key takeaways

• There is a wide array of specialties and medical practices, including private practice, group practice, hospital-based practice, HMO, direct primary care and concierge medicine, locum tenens, integrated delivery systems, independent contractors, academic medical practice, and partnership and association models. 
• Choosing the right practice model is a deeply personal decision that should align with your professional ambitions and lifestyle goals.