Top 3 Challenges of Running a Medical Practice (And What to Do About Them)

No one goes to med school dreaming about admin forms and insurance codes—but that’s the reality for many doctors today. Running a medical practice in 2024 is a high-wire act that balances patient care, business operations, compliance, and tech headaches—all before lunch.

If you’re a physician, manager, or health professional involved in running a clinic, you know the pressure isn’t just about treating patients. It’s about staying in the black without burning out. Let’s break down the three biggest challenges medical practices face—and what savvy leaders are doing to overcome them.

1. Administrative Overload Is Choking Patient Care

Ask any physician what they spend too much time on, and you’ll hear the same answer: paperwork. Between billing codes, prior authorizations, insurance audits, EHR documentation, and compliance forms, it’s not uncommon for providers to spend more time at their desk than with patients.

Why it matters: This isn’t just frustrating—it’s costly. A 2021 study in the New England Journal of Medicine found that administrative costs account for up to 25% of total U.S. healthcare spending. That’s billions spent not on care—but on bureaucracy.

What helps: Automate where you can. Smart practices are investing in AI-driven EHR tools, automated scheduling, and virtual assistants for patient intake. Delegating tasks to trained medical scribes or outsourcing billing to trusted partners can free up clinical time and improve both physician satisfaction and patient outcomes.

2. Staffing Shortages Are Straining Teams

Let’s be blunt: the healthcare workforce is exhausted. Post-pandemic burnout, rising retirement rates, and a shallow talent pipeline mean that recruiting and retaining qualified staff—from nurses to front-desk coordinators—is harder than ever.

Real-life scenario: One small practice in Ohio reported having to close two days a week—not because of low demand, but because they couldn’t staff the front desk consistently. This isn’t an isolated issue; it’s a national trend.

What helps: Competitive compensation is just the start. Practices that offer flexible scheduling, professional development, mental health support, and clear communication tend to retain staff longer. Also, involving team members in workflow improvements fosters buy-in and reduces turnover.

According to the U.S. Bureau of Labor Statistics, demand for healthcare workers will continue to grow over the next decade—so building a strong, loyal team now is a smart investment for long-term sustainability.

3. Financial Pressures Are Constant—and Often Invisible

Reimbursements are dropping. Overhead is rising. And even with a full schedule, many practices struggle to stay profitable. Why? Because revenue cycles in healthcare are slow, fragmented, and buried in red tape.

Hidden costs: Credentialing delays, claim denials, patient no-shows, and surprise audits all chip away at a clinic’s bottom line. One missed insurance update can delay thousands in reimbursements.

What helps: Data visibility. Practices that regularly review their revenue cycle metrics—like days in A/R (accounts receivable), claim denial rates, and patient collections—can spot trouble before it snowballs. Consider using revenue cycle management (RCM) software or hiring a billing consultant to streamline these processes.

Also, don’t ignore patient payment behaviors. With high-deductible health plans becoming the norm, more revenue is now patient-responsible. Clear communication about costs, flexible payment options, and digital billing can significantly improve collection rates.

Final Thought: Medicine Is a Calling—But It’s Also a Business

There’s no question: doctors want to heal, not hustle. But in today’s landscape, the business side of medicine can’t be ignored. Administrative burdens, staffing issues, and financial complexity aren’t just frustrating—they affect care quality, team morale, and the long-term survival of independent practices.

The good news? With smart systems, strong teams, and a little strategic support, your practice can thrive—without sacrificing your mission.

What challenges are you seeing in your practice? How are you navigating them? Share your insights below or connect with our community of healthcare professionals and enthusiasts at Biomedj.org.