EP440: What Is the Optimal Size for a Medical Practice? With David Muhlestein, PhD, JD

In Episode 440 of 'Relentless Health Value,' host Stacey Richter engages with David Muhlestein to explore the optimal size for a medical practice, concluding that 10 to 20 physicians supported by a capable team provide the best balance of economies of scale and community integration. The conversation transitions into the challenges large healthcare systems face, particularly the Diversification Discount.

This diversification often impedes patient care and operational efficiency by misaligning values with business practices. The episode delves into the paradox of optimizing primary care while still supporting specialty care, reflecting on how organizational values impact healthcare outcomes. Muhlestein suggests implementing business units or decentralized models to realign with patient care values and efficiencies.

To read the full article and show notes with links mentioned as well as a full transcript, click here.

08:12 From a business and patient/better outcomes standpoint, what does an optimal provider practice look like?

11:48 EP412 with Robert Pearl, MD.

13:06 Why isn’t the current landscape what David considers optimal?

14:53 What leads to the “crisis of autonomy”?

15:13 How do medical practices get to the phase of delegation?

17:39 EP438 with John Lee, MD.

18:55 EP437 with Brian Klepper, PhD.

20:53 EP432 with Kate Wolin, ScD.

20:55 EP421 with Jodilyn Owen.

23:48 Medicare Meet-Up podcast with Mai Pham, MD.

24:45 What metrics should boards of directors also be held accountable for?

28:48 Why is an efficiency-focused business not necessarily the best at managing population care?

31:13 What is the “diversification discount”?

32:49 Pivot podcast with Kara Swisher and Scott Galloway, MBA.

35:53 What can primary care doctors do to optimize their practices?

36:48 Why do we need to shift the mindset from “bigger” and “more”?