According to American Medical News (October 2009), fewer physicians are starting up solo practices due to higher start-up costs, their desire for work-life balance and low reimbursement rates. Here’s an excerpt:

Ownership loses its luster: Physicians less likely to go solo

The percentage of physicians who own their own practices varies  anywhere from 30% to 60%. It is widely accepted that the number is going down. The NEJM paper estimated the number of doctors who owns at least part of a practice has declined about 2% annually for the past 25 years.

Many experts suspect this may follow larger economic trends. But the change is also a reflection of the financial realities of practicing medicine. According to a report issued June 23 by the Medical Group Management Assn., median collections for primary care doctors increased 14.7% from 2004 to 2008 but, when adjusted for inflation, the growth was only 0.6%. Average collections went down 4.3% for specialists. When inflation was taken into account, the decline was 16.3%.

The number of doctors who own at least part of a practice has declined about 2% annually for the past 25 years…Continue Reading at amednews.org