Industry Reports

State of Small Clinics 2026: Costs, Staff, Rules and Software

State of small clinics 2026: how many there are, who owns them, costs, staffing, Medicare and telehealth rules, software prices and cyber risk.

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In a June 2026 poll, 84% of surveyed medical groups said costs had risen. The Centers for Medicare & Medicaid Services (CMS), the agency that runs Medicare, proposes to cut its 2027 rates. Jobs are hard to fill, and ownership is shifting to hospitals and corporations.

This state of small clinics 2026 report gathers numbers on size, finances, rules, software prices and cyber risk, with a 90-day plan. Here a clinic means a practice with 15 or fewer eligible clinicians (the clinicians Medicare counts), the Medicare definition we chose. One limit: no single count of small clinics exists, and sources define small differently.

Quick Answer

Small clinics face pressure from four sides: costs, payment rules, staffing and ownership shifts. In a June 2026 poll by the Medical Group Management Association (MGMA), 84% of medical groups said operating costs were higher than a year earlier (MGMA, 2026). CMS proposes 1.68% lower fee-schedule rates for 2027 for clinicians outside advanced payment models (1.19% lower for qualifying participants) in Medicare, the federal health plan mainly for people 65 and older (CMS, 2026).

So for the next 90 days, protect cash and close gaps. Check which rules apply to you, and fix billing errors. Make sure two people can do each front-desk and billing task. Get an all-in monthly price for your software.

Key numbers

  • 86.7% of U.S. physician offices with payroll (offices that pay wages) had fewer than 20 employees in 2023. So did 95.1% of dental offices and 99.2% of chiropractor offices (Census Bureau, 2023). The shares are our arithmetic.
  • 63.9% of physician practices were owned by hospitals or corporate entities on January 1, 2026. Also, 82.0% of physicians were employed by them (Physicians Advocacy Institute and Avalere Health, 2026).
  • 84% of medical groups said operating costs were higher than a year earlier, by about 11% on average among those groups. Revenue was higher for 47% and lower for 36% (June 2026 polls by MGMA: costs, revenue).
  • 56% of medical groups said hiring medical assistants got harder. For staff turnover, 28% said it was higher and 30% said it was lower (MGMA polls, May 2026: hiring, turnover).
  • 41% of providers face claim denial rates of 10% or higher, meaning insurers refuse to pay at least 1 in 10 bills. That is from Experian Health's own 2025 survey of 250 professionals (Experian Health, 2025). In Medicare Advantage, the private-plan version of Medicare, only 11.5% of denied prior authorizations (insurer approvals before a service) were appealed in 2024. That is from KFF, a health policy research group. Of those appeals, 80.7% were overturned in full or in part (KFF, 2024).
  • CMS proposes to cut the 2027 Medicare base rate, called the conversion factor, by 1.68% to $32.84 for clinicians outside advanced payment models, and by 1.19% to $33.17 for qualifying participants (CMS, 2026).
  • Two temporary telehealth rules run to set dates. The Drug Enforcement Administration (DEA) rule that lets clinicians prescribe controlled medicines after a video visit runs through December 31, 2026 (DEA and HHS, 2025). Many of Medicare's temporary telehealth rules run through December 31, 2027, says the U.S. Department of Health and Human Services (HHS) (HHS, 2026).
  • OCR, the Office for Civil Rights at HHS, listed a settlement in May 2025 with a one-facility imaging center: $25,000 in the resolution agreement, $5,000 in OCR's press release. OCR's finding was that the center had never done an accurate and thorough risk analysis. That is a written review of how patient data could be lost or stolen and what protects it (HHS OCR, 2025). HHS says its data suggest smaller outpatient (ambulatory) practices are also targeted (HHS 405(d), 2023).
  • $86 a month is the median price of an EHR (electronic health record, the software that holds patient charts) for a solo therapist. A median is the middle price: half of the vendors charge less and half charge more. The $86 covers 7 vendors in our calculator with published prices and nothing missing, unpriced or unlisted on their pricing pages for the features we picked. ClinikEHR is left out of the $86; with it, the median is $87 across 8. Only 44 of the 107 full EHRs publish a price (prices read September 26, 2026) (EHR cost calculator, 2026).

At a glance

Most offices are small, ownership is shifting and costs are rising

Small by headcount, higher costs, harder hiring and a software price you can check.

  • 86.7%

    Offices with fewer than 20 employees

    Physician offices, Census Bureau, 2023, our arithmetic

  • 63.9%

    Practices owned by hospitals or companies

    Physician practices, January 2026, Physicians Advocacy Institute and Avalere Health

  • 84%

    Groups saw operating costs rise

    MGMA poll, June 2026, 251 medical groups

  • 56%

    Medical assistant hiring got harder

    MGMA poll, May 2026, 297 medical groups

  • $32.84

    2027 Medicare base rate (conversion factor)

    Proposed, down 1.68% from $33.40 outside advanced payment models; CMS, July 2026

  • $86

    Monthly software, solo therapist

    Median of 7 vendors with published prices, without ClinikEHR; $87 across 8 with it; September 2026

Each tile carries its own data year in the detail line. The software price is a median of vendors with published prices, read September 26, 2026.

2023 to 2026Sources: Census County Business Patterns 2023 · Physicians Advocacy Institute and Avalere Health · MGMA operating cost poll · MGMA medical assistant hiring poll · CMS 2027 physician fee schedule proposal · ClinikEHR EHR cost calculator

How We Gathered This Data

We read government data and rules, surveys from professional bodies and trade groups, peer-reviewed studies and vendors' own pricing pages, in September and October 2026. Every number carries its data year, the year it describes. We left out news-only figures, with one exception: HIPAA Journal's split of breaches by type of entity, built on its own private, preliminary count of 710, which we label the weakest source where it appears. Where a page could not be opened directly in a browser, the list near the end says so.

The report covers the United States, because the public sources we found cover it best, plus a short section on four other countries. Three definitions of small appear, and we do not convert one into another. Medicare uses 15 or fewer eligible clinicians per tax ID, our working choice. We count offices with fewer than 20 employees from the Census Bureau's size classes. The American Medical Association (AMA) reports the share of physicians in practices of 10 or fewer.

MGMA Stat polls are quick polls of members, with 178 to 344 answers each. They are not random samples and do not report practice size, so they may lean toward groups larger than 15 clinicians. In the tables, n means the number of answers or vendors counted.

Our EHR cost calculator holds 123 products: 107 full EHRs, 9 other tools and 7 free software projects a practice installs itself. We leave the tools and projects out of every share and median. We read each price on the vendor's own page on September 26, 2026, and the three list-price anchors on October 6, 2026. We build ClinikEHR, one of the 107, so where it changes an answer we show results with and without it. Rule statuses are as of October 6, 2026.

How many small clinics are there, and who owns them?

No single count of small clinics exists, and the answer changes with the definition. Short answer: by headcount, clinics are tiny, and ownership has shifted toward hospitals and corporations.

What counts as a small clinic?

MIPS, Medicare's quality payment program, adjusts Medicare pay by a score. Its rules call a practice small if it is a group billing under one tax ID with 15 or fewer eligible clinicians (42 CFR 414.1305). The AMA reports the share of physicians in practices of 10 or fewer (AMA, 2024). We count Census Bureau offices with fewer than 20 employees from its published size classes (Census Bureau, 2023). We do not convert one yardstick into another, because employees include front-desk and billing staff, not only clinicians.

How many small clinics does the United States have?

Short answer: by headcount, these offices are tiny, as the table shows.

These numbers come from two Census Bureau tables, and each was the newest on October 6, 2026. County Business Patterns 2023 counts establishments with payroll, meaning single locations that pay wages. Nonemployer Statistics 2024 counts businesses with no paid employees, such as a solo owner.

Practice typeEstablishments with payroll, 2023With fewer than 20 employeesShareNonemployer firms, 2024
Offices of physicians218,066189,00086.7%245,987
Offices of dentists135,665129,00895.1%57,079
Outpatient care centers61,95845,72573.8%19,630
Offices of chiropractors39,91339,57999.2%25,668
Offices of mental health practitioners (not physicians)46,51343,54293.6%249,151 (Census nonemployer file; the same source as our behavioral health report)
Offices of physical, occupational and speech therapists and audiologists52,05847,98192.2%116,639
All offices of other health practitioners (includes the three rows above)204,615195,16495.4%665,002

The shares and sums are our arithmetic. For physician offices, 118,597 have fewer than 5 employees, 39,568 have 5 to 9 and 30,835 have 10 to 19. That totals 189,000, and 189,000 divided by 218,066 is 86.7%. Nonemployer figures count business tax returns, including part-time work. They are for a later year and use a different industry code edition, so we do not add them to payroll counts.

The Bureau of Labor Statistics (BLS) counted 61,700 chiropractor jobs in 2025, and 36% were self-employed (BLS, 2025). Why it matters: these offices are small by headcount, so check which yardstick a source uses before comparing it with your own clinic. What a clinic can do: write down your own headcount and clinician count first, then compare with the matching source.

Are small clinics still independent?

Short answer: every measure points toward less independence, though the measures differ. The Physicians Advocacy Institute (PAI), an advocacy group, and Avalere Health, which did the analysis, counted ownership on January 1, 2026. Hospitals (59.7%) or corporate entities (22.3%) employed 82.0% of physicians, and 59.7 plus 22.3 is 82.0. Corporate entities include insurers, private equity firms and large pharmacy chains. They also owned 63.9% of practices (PAI and Avalere Health, 2026).

From 2018 to 2026, there were 152,200 fewer independent physicians and 81,100 fewer physician-owned practices. The AMA found 42.2% of physicians in private practice in 2024, down from 60.1% in 2012 (AMA, 2024).

The data

By one count, 82% of physicians work for hospitals or companies; by another, 42% are in private practice

Three measures from two surveys, each shown out of 100

  • 82.0%

    Employed by hospital or company

    Physicians, January 1, 2026, Physicians Advocacy Institute and Avalere

  • 63.9%

    Hospital or company owned practices

    Practices, January 1, 2026, Physicians Advocacy Institute and Avalere

  • 42.2%

    Physicians in private practice

    2024, AMA's own definition

Three different measures from two surveys; do not compare the tiles. The Physicians Advocacy Institute and Avalere cover physicians only, and the AMA uses its own meaning of private practice.

2024 and 2026Sources: Physicians Advocacy Institute and Avalere Health · American Medical Association

The table adds more then-and-now measures, including two other professions.

MeasureEarlierLatestSource
Physicians in practices of 10 or fewer61.4% (2012)47.4% (2024)AMA, 2024
Physicians in private-equity-owned practices4.5% (2022)6.5% (2024)AMA, 2024
Dentists who own their practice85% (2005)73% (2023)American Dental Association (ADA), 2023
Dentists under 10 years out of school who work with a DSO, a group company that runs dental offices (9% of those more than 25 years out)24% (2023)27% (2024)ADA, 2024
Licensed doctoral psychologists naming private practice as their main setting77% (2020)64% (2025)American Psychological Association (APA), 2025

PAI and the AMA are advocacy bodies, and the AMA's private practice is its own classification. The ADA says the dental fall is mostly early-career dentists delaying ownership. The APA says its 2025 sample had more early-career psychologists. None of these measures what owners gain by staying independent.

Why it matters: every measure above points toward fewer independent practices, so owners who stay independent are in a shrinking group. What a clinic can do: if you get a buy-out offer, compare it with your own costs and revenue, using the table in the next section.

How are small clinics doing financially in 2026?

Short answer: operating costs rose for 84% of surveyed groups in June 2026, and revenue growth narrowed. No source here shows margin levels for clinics with 15 or fewer clinicians, and we cannot say what causes the changes. The table sets out the evidence.

MeasureResultPoll or period
Operating costs against a year earlier (MGMA)Higher 84%, about the same 8%, lower 8%; average rise about 11% where costs rose, with answers clustered between 5% and 20%June 23, 2026; n 251 groups
Revenue against a year earlier (MGMA)Higher 47%, about the same 14%, lower 36%, unsure 2%June 30, 2026; n 221 groups
Operating margin per full-time physician (MGMA)Worse 48%, same 32%, better 15%, unsure 5%October 14, 2025; n 248 groups
Operating cost per full-time physician, physician-owned multispecialty groups (MGMA)Up 71.6% against consumer prices up 39.5%2011 to 2024
Prices physician offices receive, except mental health (BLS)Index 162.600 (preliminary) against 160.649 a year earlier and 157.940 two years earlierAugust 2026
General dentists' revenue and expenses per dentist, inflation-adjusted (ADA)Revenue up 1.4%, expenses up 4.9%; net income per general dentist $266,400 to $244,7292016-20 against 2021-25

Here is the reasoning. For costs, 84 plus 8 plus 8 is 100. The share with higher costs has eased from 95% in 2023 to 92% in 2024 and 90% in 2025. Yet the average rise has stayed between about 10% and 12.5%. For revenue, the gap between higher and lower fell from 26 points a year earlier (56 minus 30) to 11 (47 minus 36).

Benchmark costs grew 32.1 percentage points faster than consumer prices (71.6 minus 39.5), though these are multispecialty groups, not small clinics. The price index rose about 1.2% (162.600 divided by 160.649, minus 1) after about 1.7% (160.649 divided by 157.940, minus 1). Those percentages are our arithmetic, and the index covers all payers, so it answers a different question than the cost poll. For dentists, net income fell $21,671 (266,400 minus 244,729), about 8.1% of $266,400.

Why it matters: costs rose for 84% of groups and revenue growth narrowed. These sources do not show what clinics with 15 or fewer clinicians keep after costs. We cannot say what causes the changes. What a clinic can do: compare your own monthly costs and revenue with last year, to see whether you are in the 84%.

What are the biggest cost and staffing pressures on small clinics?

Seven MGMA quick polls in 2026 show pressure on several fronts. Results are mixed on revenue (47% higher, 36% lower) and turnover (28% higher, 30% lower). The polls ask about costs, revenue, hiring, turnover, burnout, prior authorization and payment speed. Each is a separate quick poll of MGMA members, so compare the bars with care. The chart below puts the 2026 polls side by side.

The data

Costs rose for 84% of groups; revenue and turnover answers were mixed

Share of groups giving each answer in an MGMA poll

  • Operating costs higher than a year agoJune 2026, 251 groups84%
  • Hiring medical assistants got harderMay 2026, 297 groups56%
  • Revenue higher than a year agoJune 2026, 221 groups47%
  • Prior authorization got slowerSeptember 2026, 178 groups44%
  • Revenue lower than a year agoJune 2026, 221 groups36%
  • Lost a physician to burnout, past yearApril 2026, 344 groups33%
  • Days waiting to be paid went upJuly 2026, 203 groups32%
  • Staff turnover higher than last yearMay 2026, 303 groups28%

Each bar comes from one of seven MGMA quick polls of its members; practice size is not reported. Revenue higher and lower come from the same poll. Turnover was lower for 30% of groups and about the same for 39%.

2026Sources: MGMA operating cost poll · MGMA medical assistant hiring poll · MGMA revenue poll · MGMA prior authorization poll · MGMA physician burnout poll · MGMA days in accounts receivable poll · MGMA staff turnover poll

How hard is it to hire and keep staff?

Short answer: hiring medical assistants got harder, and turnover was about even (28% higher, 30% lower, 39% the same). In MGMA's May 2026 polls, 56% of 297 groups said medical assistant hiring was harder over the past year (MGMA, 2026). Among 303 groups, turnover was higher for 28%, lower for 30% and about the same for 39% (MGMA, 2026). That compares with last year and is not a turnover rate. MGMA says:

Each departure can slow rooming, age claims work, lengthen call queues, increase overtime and drain institutional knowledge.

MGMA, Stabilized but not solved: Staff turnover in medical practices looking no better, no worse in 2026, May 28, 2026.

In April 2026, 33% of 344 groups said a physician had retired or left in the past year because of burnout (MGMA, 2026). Group leaders gave that answer, so it is not a count of burned-out clinicians. Dentists report a staffing strain of their own: only 60% say they have enough hygienists (ADA, 2026). That page gives no sample size, so treat the 60% as a rough guide.

One person leaving a team of 5 removes 20% of the team (1 divided by 5). In a team of 50 it removes 2%. A small team has fewer spare people, so teach two people each front-desk and billing task, and write the steps down.

What do clinic staff earn?

These are BLS Occupational Outlook medians for May 2025, across all industries and the whole country. A median is the middle value. Job counts are for 2025.

Role (BLS page)Median per yearPer hourJobsNote
Medical assistants$45,690$21.97833,900Projected growth of 13% from 2025 to 2035
Receptionists and information clerks$38,010$18.27947,500$19.00 an hour in healthcare and social assistance, which employs 42% of them
Substance abuse, behavioral disorder and mental health counselors$59,350$28.53533,400Projected growth of 18% from 2025 to 2035; psychologists are a separate row
Psychologists$99,110$47.65209,40023% are self-employed
Dental hygienists$98,100$47.16225,30094% work in dentist offices
Dental assistants$48,070$23.11388,60091% work in dentist offices
Chiropractors$79,200$38.0861,70036% are self-employed; 57% work in chiropractor offices

BLS wages leave out self-employed workers and owners of unincorporated businesses, so the psychologist and chiropractor figures understate owner earnings. The medians are national, not by clinic size, and we do not claim pay causes the hiring strain. Why it matters: in MGMA's June 2026 cost poll, groups named labor-related costs as the main factors behind higher costs (MGMA, 2026). What a clinic can do: compare your own pay with local rates, because national medians hide local differences.

Why do denials and prior authorization matter?

A denial is an insurer's refusal to pay a claim, the bill sent to the insurer. Prior authorization is approval before a service. Short answer: three things stand out. Missing or wrong data is the top reported cause of denials, prior authorization got slower for more groups than it sped up for, and few Medicare Advantage prior authorization denials are appealed. None of these sources measures staff hours.

In 2025, Experian Health, a claims-software company, surveyed 250 healthcare professionals. It found 41% of providers face denial rates of 10% or higher. The top cause was missing or inaccurate data (50%), then authorizations (35%) and patient registration data (32%) (Experian Health, 2025). The survey is self-reported, and the release does not say how large the respondents' organizations are. In September 2026, 44% of 178 MGMA groups said prior authorization got slower, and 7% said faster (MGMA, 2026).

Since January 1, 2026, Medicare Advantage, Medicaid and the Children's Health Insurance Program (CHIP) payers must decide urgent requests within 72 hours. Standard requests get 7 calendar days. Medicaid is the joint federal and state program for people with low incomes. These payers must also give a specific denial reason. The rule excludes drug prior authorization decisions from most of its requirements (CMS, 2024).

The two clocks do not apply to plans sold on the federal health exchanges, and the rule does not name employer plans. Payers' electronic prior authorization connections, called APIs, are due January 1, 2027 (CMS, 2024). An API is a way for two computer systems to swap information. We found no data on whether payers meet the clocks.

In Medicare Advantage in 2024, insurers denied 4.1 million of 52.8 million requests in full or in part, which KFF reports as 7.7%, or about 1 in 13 (4.1 divided by 52.8 gives 7.8% because 4.1 million is rounded). Only 11.5% of denials were appealed (KFF, 2024). From those rounded figures, 4.1 million denials times 11.5% is about 470,000 appeals. Then 470,000 times 80.7% is about 380,000 appeals overturned in full or in part. KFF says:

In each year from 2019 through 2024, more than eight in ten denied prior authorization requests that were appealed were overturned.

KFF, Medicare Advantage Insurers Made Nearly 53 Million Prior Authorization Determinations in 2024, January 28, 2026.

The chart follows the decisions to the appeals that overturned a denial.

The appeal funnel

Only 11.5% of Medicare Advantage denials were appealed, and 80.7% of appeals were overturned in full or in part

What happened to 2024 prior authorization decisions in Medicare Advantage

  1. Medicare Advantage

    Prior authorization decisions

    52.8 million decisions in 2024

    decided
  2. Denied

    Denied in full or in part

    4.1 million, or 7.7%

    appealed
  3. Appealed

    Appealed

    11.5% of denials

    won
  4. Overturned

    Overturned on appeal

    80.7% of appealed denials, in full or in part

Medicare Advantage only; commercial plans and Medicaid may differ.

2024Source: KFF analysis of 2024 Medicare Advantage prior authorization data

Why it matters: only 11.5% of denials were appealed, yet more than eight in ten appealed denials were overturned, so appeals may be worth the staff time. These figures cover Medicare Advantage only, not commercial plans or Medicaid.

Insurance is also a hurdle in behavioral health. In APA's 2025 survey of 1,742 doctoral psychologists, 38% accepted no health insurance (APA, 2025). That is not a denial rate, but it shows strain between clinics and payers. What a clinic can do: fix registration data at check-in, ask payers for the denial reason in writing, and appeal.

How much is lost to slow payment and missed visits?

Accounts receivable, or A/R, is money owed to the clinic. In July 2026, days in A/R rose for 32% of 203 MGMA groups and fell for 22%, a 10-point net rise (MGMA, 2026). MGMA names payer delays and initial denials as the main reasons.

A 2026 review covered 27 studies in eight countries. Across the studies, the median share of primary care appointments missed was 14.2%, and the range was 5.2% to 38.0% (Jad et al., 2026). At 14.2%, 100 booked visits a week means about 14 missed (100 times 0.142). The review covers primary care in eight countries, not only the United States, and not dental care or therapy.

Why it matters: slow payment and missed visits both delay cash. What a clinic can do: measure both this month. Run an A/R aging report, a list of unpaid bills sorted by how old they are, and count missed visits.

How do small clinics use technology?

Nearly every office-based physician uses an EHR (95% in 2024, as shown below). So the useful question is how well it connects to patients, billing and security. What software costs comes next.

How many have an EHR, and how do patients use it?

In 2024, 95% of office-based physicians used an EHR, per ASTP/ONC, the federal health information technology office within HHS. The table shows certified EHR use, meaning it meets federal technical rules, by practice size (ASTP/ONC, 2024).

Physicians in the practiceCertified EHR, 2024
1 (solo)79.9%
2 to 390.2%
4 to 1092.9%
11 to 5095.1%
51 or more98.5%

The smallest practices lag. Solo physicians had any EHR at 86.1%, and only 32% used an EHR from one of the five market-leading developers, against 90% in practices of 51 or more physicians. The certified gap is 18.6 points (98.5 minus 79.9). The survey covers physicians only. ONC calls this June 2026 brief its final formal reporting.

Why it matters: almost every physician uses an EHR, so the real question is how well yours connects to patients, billing and security. What a clinic can do: ask your vendor in writing which of those it handles.

Patients who were encouraged used portals more often. In 2024, 65% of U.S. adults were offered a portal and used it. Of those offered, 89% were encouraged by a provider, and 87% of the encouraged used it, against 57% of the rest (ASTP/ONC, 2024). That 30-point gap (87 minus 57) shows an association, not proof of cause. Asking patients is a step a clinic controls, so have staff tell every patient about the portal.

Where do telehealth and AI tools fit?

Telehealth is still widely used, but below its 2021 level. In 2024, 80.0% of office-based physicians used telemedicine, down from 86.5% in 2021, per the National Center for Health Statistics (NCHS) (NCHS, 2024). NCHS is part of the federal Centers for Disease Control and Prevention. Audio-only calls count.

Practice group20212024
All office-based physicians86.5%80.0%
Solo practice76.3%70.6%
2 to 10 physicians86.8%78.7%
11 or more physicians96.8%89.6%
Non-metropolitan areas83.3%60.9%

NCHS flags the drops for practices of 2 to 10 physicians, 11 or more physicians and non-metropolitan areas as statistically significant. NCHS does not flag the solo-practice drop as statistically significant.

Tools vary. In 2024, 34.7% of all physicians surveyed used a platform integrated with the EHR, and 25.7% used one not integrated with it, such as Doxy.me (NCHS, 2024). Among the 81.2% of surveyed physicians whose practice used telemedicine (also a share of physicians, taken from the full survey file, so it differs slightly from the NCHS brief's 80.0%), the integrated share is about 43% (34.7 divided by 81.2). A standalone tool still needs a business associate agreement (BAA), a contract with a vendor that handles patient data. HIPAA, the federal health privacy law, requires it.

AI is spreading, with mixed proof. An AI scribe is software that listens to a visit and drafts the note. The table lists three surveys. None is a small-clinic sample, and Doximity is a company survey, not a random sample.

SurveyWho answeredResultPeriod
MGMA poll257 medical group leaders46% said AI tools made providers more productive, 27% saw no gains, 14% were unsure, 13% do not use AI; where gains appeared, ambient AI scribes were the main driverMay 12, 2026
Doximity survey3,151 member physicians across two waves29% used voice-based documentation or AI scribes (20% in the first wave); 63% used AI in clinical practice (47% in the first wave)March to April 2025 and November 2025 to January 2026
APA survey1,742 doctoral psychologistsNever used AI at work 44% (71% in 2024); use it at least monthly 29%; top concern data breaches, 67%2025

None of these surveys shows that AI scribes pay off for small clinics. Before you buy one, check three things: that it connects to the patient chart, that the vendor signs a BAA, and what it costs for your team size.

What does clinic software cost, based on published prices?

What software costs depends on what vendors publish. Every table here comes from our calculator unless it says otherwise, with prices read on vendors' own pages on September 26, 2026. Claims equal sessions times the share billed to insurance. We count one reminder or note per session (per client where the vendor's file says so). Monthly is the steady price after first-year discounts end and before card fees.

First year adds set-up fees. SimplePractice claim rates are those from October 1, 2026. ClinikEHR's figures include features our team confirmed that its pricing page does not list.

The calculator counts ClinikEHR's AI notes as included in the price shown. Its AI note-taker has a pooled allowance. Essential includes the first 3 clinicians and 300 minutes of audio a month for the whole clinic; Team includes the first 5 and 900 minutes. Each clinician beyond those included adds $20 a month for the AI note-taker. The calculator does not test whether a busy clinic would pass the allowance.

We quote a median only when 5 or more vendors remain without ClinikEHR. We give n, the number of vendors, each time, and say "of vendors with published prices in our calculator". Quote-only vendors, which publish no price, sit outside every median, so the true middle price may be higher, though our data do not show that. Middle half is the range that holds the middle half of vendors. A quarter charge less than its low end, and a quarter charge more than its high end.

ScenarioTeamPatients and visitsBilled to insuranceFeatures priced
Solo therapist1 clinician40 clients, about 110 sessions a month70% (77 claims a month)Video visits, claims, client portal, online booking, text reminders, e-signature, intake forms; "plus AI" adds an AI note-taker; "essentials" keeps video visits, claims, portal and booking
Solo doctor1 prescriber and 1 admin400 patients seen a month80% (320 claims)E-prescribing, video visits, claims, portal, online booking, text reminders, e-signature
Primary care, essentials2 prescribers and 1 admin600 patients seen a month80% (480 claims)E-prescribing, claims, patient portal
Primary care, 3 clinicians3 prescribers and 2 admin900 patients seen a month80% (720 claims)The solo doctor list plus lab ordering
Therapy group of 55 clinicians and 1 admin200 clients, about 550 sessions a month70% (385 claims)Video visits, claims, portal, online booking, text reminders, e-signature, intake forms, outcome measures, group sessions

Do vendors publish their prices?

Short answer: fewer than half. Of the 107 full EHRs in our calculator, 44 publish a price on their own site, which is 41% (44 divided by 107). Published means the page gives a price for one or more practice sizes. The types overlap, so rows do not add to 107.

Group (calculator, September 26, 2026)Full EHRsPublish a priceShareDo not publish a price
All1074441%63 (57 quote only, 6 enterprise only)
Therapy and mental health332473%9
Medical and primary care321238%20 (18 quote only, 2 enterprise only)
Physical therapy and chiropractic221359%9
Med spa and aesthetics15853%7
Dental (fewer than 10 EHRs, so counts only)73no share4
Addiction treatment and residential care (fewer than 10 EHRs, so counts only)93no share6

Quote only means the vendor shows no price and asks you to request one. Enterprise only means the vendor's page points only to an enterprise offer, with no published price.

In therapy, claims are the least clearly priced line. Of 24 EHRs with published prices, 13 state a claims price, 6 offer claims with no price, 1 does not offer them and 4 do not list them. Not listed means the page is silent.

Therapy feature (24 EHRs with published prices, September 26, 2026)State it in the plan or price listOffered, price not publishedCappedNot offeredNot listed
AI notes1642 (Noterro, ClinikEHR)02
Insurance claims136014
Video visits202101
Text reminders202101
Client portal192003
Online booking190005
E-signature190005
Intake forms220101

We also run an anonymous peer benchmark of what practices say they pay, shown once 5 answer for the same EHR, practice type and size band. On October 6, 2026, none of 393 combinations had five answers (our live check). So we publish no user-reported software spend. What a clinic can do: ask each vendor for a written, all-in monthly price for your size and features.

What does a solo clinician pay each month?

Take the solo therapist. Of 33 full EHRs for therapy, 24 publish a price, and 8 leave nothing missing, unpriced or unlisted for the features we picked (7 without ClinikEHR). Without ClinikEHR, the median is $86 a month across 7 vendors with published prices in our calculator. With ClinikEHR, it is $87 across 8. ClinikEHR's $130 is the highest in the pool, and it is the calculator total for the scenario, not its $99.90 Essential plan price.

An AI note-taker lifts the median without ClinikEHR from $86 to $120, a rise of $34 (120 minus 86). With ClinikEHR it is $125 across 8, and ClinikEHR is one of the two middle values. The calculator counts ClinikEHR's AI notes as included in its $130. That allowance is 300 minutes of audio a month on Essential, pooled across the clinic.

Solo therapist, 77 claims a month (calculator, September 26, 2026)PeriodMedian without ClinikEHR (n)Middle half without ClinikEHRLowest to highest without ClinikEHRMedian with ClinikEHR (n)ClinikEHR alone
Core featuresMonthly$86 (n 7)$76 to $90$58 (Carepatron) to $111 (SimplePractice)$87 (n 8)$130
Core featuresFirst year$1,027 (n 7)$942 to $1,102$699 (Carepatron) to $1,328 (SimplePractice)$1,056 (n 8)$1,580
Core featuresThree years$3,080 (n 7)$2,776 to $3,255$2,097 (Carepatron) to $3,985 (SimplePractice)$3,167 (n 8)$4,691
Core features + AI note-takerMonthly$120 (n 7)$108 to $148$58 (Carepatron) to $254 (Healthie)$125 (n 8); ClinikEHR is one of the two middle values$130
Core features + AI note-takerFirst year$1,445 (n 7)$1,320 to $1,777$699 (Carepatron) to $3,104 (Healthie)$1,513 (n 8); ClinikEHR is one of the two middle values$1,580
Core features + AI note-takerThree years$4,336 (n 7)$3,910 to $5,331$2,097 (Carepatron) to $9,212 (Healthie)$4,513 (n 8)$4,691, same as core
Essentials onlyMonthly$83 (n 8)$75 to $94$58 (Carepatron) to $164 (Blueprint)$86 (n 9)$115
Essentials onlyFirst year$1,018 (n 8)$933 to $1,126$699 (Carepatron) to $1,967 (Blueprint)$1,027 (n 9)$1,375
Essentials onlyThree years$3,005 (n 8)$2,725 to $3,379$2,097 (Carepatron) to $5,900 (Blueprint)$3,080 (n 9)$4,126

The chart shows the spread for three versions of the scenario. ClinikEHR is the marker.

The data

Without ClinikEHR, a solo therapist's monthly software price runs from $58 to $111 for the core features

Vendors with published prices, by feature set, before card fees

  • Core features7 products
    $86 middle$58 to $111ClinikEHR $130
  • Core features plus an AI note-taker7 products
    $120 middle$58 to $254ClinikEHR $130
  • Essentials only8 products
    $83 middle$58 to $164ClinikEHR $115

lowest to highestthe middle halfthe median (half cost less, half cost more)

Vendors with published prices and nothing missing, unpriced or unlisted on their pricing pages for the features picked; before card fees; the products count excludes ClinikEHR, shown as the marker.

September 2026Source: ClinikEHR EHR cost calculator

Two prescribers in primary care need only the essentials here. Without ClinikEHR, the median is $398 a month across 7 vendors with published prices in our calculator. With ClinikEHR, it is $376 across 8, and ClinikEHR's $354 is one of the two middle values. The highest price is about 13 times the lowest (1,198 divided by 90), so treat a median as a starting point, not a quote.

Primary care essentials, 480 claims a month (calculator, September 26, 2026)Median without ClinikEHR (n 7)Middle half without ClinikEHRLowest to highest without ClinikEHRMedian with ClinikEHR (n 8)ClinikEHR alone
Monthly$398$308 to $810$90 (Office Ally) to $1,198 (eClinicalWorks)$376; ClinikEHR ($354) is one of the two middle values$354
First year$4,776$3,717 to $9,963$1,079 (Office Ally) to $14,896 (AdvancedMD)$4,559$4,343
Three years$14,328$11,102 to $29,669$3,236 (Office Ally) to $43,128 (eClinicalWorks)$13,579not shown

A solo doctor has only 3 vendors with nothing missing, unpriced or unlisted on their pricing pages for the features we picked. Without ClinikEHR, only 2 remain, so we list prices and quote no median. Practice Fusion is in the two-prescriber essentials pool above, but not in this solo-doctor pool, which needs more features.

Solo doctor, 320 claims a month, n 3 (calculator, September 26, 2026)MonthlyFirst yearThree years
Carepatron$196$2,347$7,042
Healthie$220$2,690$7,970
ClinikEHR$264$3,288$9,615

Vendors' own pages give list-price anchors.

Vendor's own page, read October 6, 2026List priceNote
Practice FusionStarting at $199 a month per provider, annual commitment requiredTwo providers is $398, our arithmetic
eClinicalWorks$499 a month per provider for EHR only; $599 with practice management; billing service 2.9% of collectionsTwo providers at $599 is $1,198
Open DentalDental software: $199 a month per location for the first 12 months, then $149; $20 for each provider above 3Self-hosted, so the practice supplies its own server; Open Dental Cloud fees are extra

What does a team pay, and what does each added clinician cost?

Between 1 and 5 clinicians, each added clinician costs a median of $47 more a month in therapy (n 21). In medical it is $146 (n 10), and in physical therapy and chiropractic $19 (n 9). This is the middle of each vendor's own extra cost per added clinician. So it does not equal the gap between the two table medians ($225 minus $55, divided by 4, is $42.50).

Judged over teams of 1 to 10 clinicians, of 21 therapy EHRs, 13 charge the same extra amount per added clinician. The other 8 charge a rate that changes with team size, and none is flat. Healthie charges $49.99 for a solo clinician. A team moves to its Group plan at $149.99 for the first clinician plus $50 for each added one, so two clinicians cost $199.99 and five cost $349.99 (149.99 plus 4 times 50).

The first table covers entry plans only, and entry plans include different things, so the rows are not like for like. It leaves out ClinikEHR and Halaxy, which are $0 at one clinician. It also leaves out WriteUpp, which lists no price at 3 or more clinicians. For physical therapy and chiropractic, it also leaves out ECLIPSE, which lists no price at one or more team sizes.

Practice type (n), entry plan only (calculator, September 26, 2026; 40 clients and 100 visits a month per clinician, no required features, no claims)Team sizeMedian monthlyMiddle halfLowest to highest
Therapy (n 21)1 clinician$55$45 to $69$31 (TheraNest) to $249 (Osmind)
Therapy (n 21)5 clinicians$225$155 to $295$56 (GlossGenius) to $1,245 (Osmind)
Therapy (n 21)10 clinicians$420$306 to $555$152 (Noterro) to $2,490 (Osmind)
Medical (n 10)1 clinician$245$50 to $300$39 (Carepatron) to $499 (eClinicalWorks)
Medical (n 10)5 clinicians$835$275 to $1,455$195 (Carepatron) to $2,495 (eClinicalWorks)
Medical (n 10)10 clinicians$1,595$525 to $2,906$390 (Carepatron) to $4,990 (eClinicalWorks)
Physical therapy and chiropractic (n 9)1 clinician$49$39 to $65$33 (Noterro) to $158 (Practice Perfect)
Physical therapy and chiropractic (n 9)5 clinicians$173$95 to $219$56 (GlossGenius) to $270 (Nookal)
Physical therapy and chiropractic (n 9)10 clinicians$248$195 to $394$152 (Noterro) to $458 (Nookal)

Named therapy examples show the shape of those prices.

Therapy vendor, entry plan, monthly (calculator, September 26, 2026)1 clinician5 clinicians10 clinicians
Carepatron$39$195$390
Zanda$49$125$220
Noterro$33$85.80$151.80
Cliniko$45$95$195
GlossGenius$56$56$168
Healthie$49.99$349.99$599.99
SimplePractice$50.67$403.33$763.67
Osmind$249$1,245$2,490

A therapy group of 5 has only 4 vendors without ClinikEHR, so we list each price and quote no median. With an AI note-taker added, the five monthly prices are $384 (ClinikEHR), $413 (Zanda), $532 (TheraPlatform), $726 (SimplePractice) and $848 (Healthie). For the other four vendors, the monthly total rises when AI notes are added.

ClinikEHR's two columns match because the calculator counts AI notes as included in the price shown. On Team, that means 900 minutes of audio a month, pooled across the clinic. Its figures are calculator totals for this scenario, not plan prices.

Therapy group of 5, 385 claims a month, n 5 (calculator, September 26, 2026)MonthlyFirst yearThree yearsMonthly with AI note-takerFirst year with AIThree years with AI
Zanda$318$3,861$11,483$413$5,001$14,903
Healthie$380$4,610$13,730$848$10,232$30,596
TheraPlatform$382$4,587$13,761$532$6,387$19,161
ClinikEHR$384$4,630$13,840$384$4,630$13,840
SimplePractice$551$6,609$19,828$726$8,709$26,128

In three-clinician primary care, only Healthie and ClinikEHR have nothing missing, unpriced or unlisted for the features we picked, and ClinikEHR costs more of the two. ClinikEHR's two AI columns match because the calculator counts its AI notes as included. Its pooled allowance is 300 minutes of audio a month on Essential or 900 on Team.

Primary care, 3 prescribers, 720 claims a month, n 2 (calculator, September 26, 2026)MonthlyFirst yearThree yearsMonthly with AI note-takerFirst year with AIThree years with AI
Healthie$400$4,850$14,450$1,166$14,042$42,026
ClinikEHR$940$11,898$34,446$940$11,898$34,446

Between 1 and 5 clinicians, the extra cost per added clinician runs from $0 to $249 a month in therapy. The $0 is GlossGenius, which charges $56 at 1 clinician and at 5 clinicians, and more after that. The $249 is Osmind. So price your next five clinicians, not only your first.

Which extra fees and free plans matter?

Short answer: card fees, claims fees and add-ons can outweigh the plan price, so ask for an all-in monthly number. We express card fees as a percent of a $100 payment, fixed fee included. Osmind's 0% is the fee of Stripe, the card-payment company, passed to the patient, so it is not a real rate. Counting it anyway, the therapy medians are 3.29% without ClinikEHR (n 15) and 3.35% with it (n 16). Leaving out both Osmind and ClinikEHR, the median is 3.35% across 14 vendors.

ClinikEHR has the highest online card fee in our calculator data: 5.10% on a $100 payment, a 1.9% platform fee plus Stripe's standard 2.9% and $0.30 on each payment. The other therapy vendors that charge the practice a rate run from 2.60% to 4.50%. If a clinic takes $10,000 a month in 100 payments of $100, 3.35% costs $335 and 5.10% costs $510 (100 times $3.35 and 100 times $5.10). Eight of 24 therapy vendors have no rate on file.

Card fee, % of a $100 payment (calculator, September 26, 2026)Value
Therapy median, without ClinikEHR (counts Osmind's 0%)3.29% (n 15)
Therapy median, with ClinikEHR (counts Osmind's 0%)3.35% (n 16)
Therapy median, without ClinikEHR and Osmind3.35% (n 14)
Therapy range without ClinikEHR and Osmind2.60% (GlossGenius) to 4.50% (Halaxy); also Jane App 3.10%, Sessions Health 3.20%, Noterro 3.60%, Zanda 3.70%
ClinikEHR5.10% (1.9% platform fee plus Stripe 2.9% + $0.30), the highest in our calculator data
Medical, 12 published, 6 publish a rateMedian 3.20% without ClinikEHR (n 5), 3.35% with it (n 6); range without ClinikEHR 2.40% (Atlas.md) to 4.50% (Halaxy); Hint Health 3.05% on its Pro plan (3.30% on Launch), Healthie 3.20%, Carepatron 3.50%

Free migration usually means a self-serve import, and no price published is not free. For onboarding, 22 of 24 therapy vendors have nothing recorded, which is not free onboarding.

Three of 24 therapy EHRs include AI notes at no extra cost, though Halaxy's applies only to video visits. Two include only a capped allowance: Noterro and ClinikEHR (300 pooled audio minutes a month on Essential, 900 on Team). Another 13 sell an add-on at a median of $35. Three of the 24 have a $0 plan for a very small practice that does not bill insurance. All three are usage-capped, and with 28 electronic insurance claims a month none stays $0.

One-time fees (calculator, September 26, 2026)Migration: no chargeMigration: chargesMigration: no price publishedOnboarding: chargesOnboarding: no price publishedOnboarding: nothing recorded
Therapy (24 EHRs)121 (BestNotes $100)110222
Medical (12 EHRs)6061 (Hint Health $500, optional)110

AI notes are priced in different ways.

AI notes in published prices (calculator, September 26, 2026)Included at no extra costCapped allowancePaid add-on or higher planOffered, price not publishedNot offeredNot listed
Therapy, solo (24)3: Carepatron, Halaxy, Blueprint2 (Noterro: 300 credits a month, about 18 minutes of recording, then $0.17 a minute; ClinikEHR: 300 minutes of audio a month pooled across the clinic on Essential)13 (median $35, middle half $30 to $49, $15 Jane App to $175 Healthie)4 (IntakeQ / PracticeQ, Nookal, BestNotes, Osmind)02 (Cliniko, GlossGenius)
Therapy, group of 5 (23)3: Carepatron, Halaxy, Blueprint2 (Noterro; ClinikEHR: 900 minutes of audio a month pooled across the clinic on Team)12 (median $188, middle half $169 to $265, $75 Jane App to $625 CharmHealth)402
Medical, 3 prescribers (12)3: Carepatron, Halaxy, Atlas.md1 (ClinikEHR: 900 minutes of audio a month pooled across the clinic on Team)4, too few for a median (Hint Health $100, AdvancedMD $300, CharmHealth $375, Healthie $766)1 (eClinicalWorks)1 (Practice Fusion)2 (Office Ally, Akute Health)

Halaxy's AI notes apply only to its video visits, and Noterro's and ClinikEHR's are capped, so check each cap before you count any of them as free.

The $0 plans are limited by usage caps.

$0 plans for a very small practice (1 clinician, 20 clients, 40 visits, September 26, 2026)CountNames and caps
Therapy (24 published)3CharmHealth (50 visits a month; paper claim forms up to 50 a month, electronic claims only on paid plans, so not $0 at 60 visits or for electronic claims), ClinikEHR (2 staff and 50 clients), Halaxy (free core; US claims unavailable; SMS and video sold as credits; AI notes included on video visits only)
Medical (12 published)3The same three
Addiction treatment (3 published)1ClinikEHR
Not counted1Carepatron's Free plan is capped by total appointments, so it is priced on its Plus plan

Which payment and policy rules apply in October 2026?

These rules change what a small clinic is paid or allowed to do. Statuses are as of October 6, 2026, and two of the eight items are proposals, so read the status word on each date. Three of the eight dates are still ahead in 2026.

Timeline

Three federal dates still fall before the end of 2026, and two items are only proposals

Rules that change what a clinic is paid or allowed to do, with their status on October 6, 2026

  1. Jan 1, 2026In force

    Federal clocks for prior authorization decisions began

    72 hours for urgent and 7 calendar days for standard requests at Medicare Advantage, Medicaid and Children's Health Insurance Program payers; drug decisions are excluded from most requirements

  2. Oct 1, 2026In force

    Limits on state Medicaid provider taxes start

    Start date scheduled under Public Law 119-21, per the CMS bulletin

  3. About Nov 1, 2026Coming

    Final 2027 Medicare fee schedule rule expected

    Proposed conversion factor $32.84, down 1.68%; the date comes from a summary by the American Academy of Family Physicians, not a federal page

  4. Nov 2026Proposed

    DEA targets a final rule on permanent telemedicine prescribing

    The rule was proposed in January 2025 and is not final; agency target, month only

  5. Dec 31, 2026Coming

    DEA temporary telemedicine prescribing rule runs through this date

    It lets clinicians prescribe controlled medicines after a video visit. It ends then unless a rule or extension is published; we found none as of Oct 6, 2026; the final special registration rule has been at White House review since Aug 25, 2026

  6. Jan 1, 2027Coming

    Three rules start or come due

    Medicaid work requirements for expansion adults, with a CMS rule effective July 31, 2026 (a state may get a good-faith delay to Dec 31, 2028): 80 hours a month of work, service, a work program or half-time study, among other ways; Medicaid renewals every 6 months for expansion adults; payers' electronic prior authorization connections (APIs) due

  7. Jul 2027Proposed

    HIPAA Security Rule overhaul: agenda target for final action

    A target only, filed as a long-term action; not final law

  8. Dec 31, 2027Coming

    Many of Medicare's temporary telehealth flexibilities run through this date

    At-home behavioral care is permanent, but its in-person visit requirement is waived only through this date

Statuses as of October 6, 2026. Agency target dates are targets, not commitments.

2026 to 2027Sources: CMS prior authorization rule fact sheet · CMS Medicaid work requirement rule · CMS Medicaid provisions bulletin · CMS 2027 physician fee schedule proposal · Federal Register, 2027 physician fee schedule proposed rule · Federal agenda, DEA special registration · DEA and HHS fourth temporary extension · Federal agenda, HIPAA Security Rule · HHS telehealth policy updates

What does Medicare pay in 2026, and what is proposed for 2027?

Medicare pays clinicians from a fee schedule, a list of set prices for services. The conversion factor is the dollar amount multiplied by each service's relative value units, points that measure the work and cost behind it. The 2026 rise includes a one-year 2.50% increase set by law that expires after 2026 (CMS, 2025). The table shows the 2027 proposal (CMS, 2026). Advanced payment models are Medicare programs that pay for care quality and cost, not only for each service.

Clinicians (CMS fact sheets, 2026 final and 2027 proposed)2026 finalChange from 20252027 proposedChange from 2026
Not in advanced payment models$33.40up 3.26%$32.84down $0.56, or 1.68%
Qualifying participants in advanced payment models$33.57up 3.77%$33.17down $0.40, or 1.19%

The steps for the first row: $33.40 divided by 1.025 removes the increase and gives about $32.59. Add the 0.25% update set by law for about $32.67, then the 0.53% adjustment to the work points for about $32.84. Comments on the proposal closed September 14, 2026 (Federal Register, 2026). A summary from the American Academy of Family Physicians puts the final rule at about November 1. MedPAC, the independent advisor to Congress on Medicare, said in March 2026:

Based on our indicators, current payments to clinicians appear to be adequate to ensure access to care.

MedPAC, Report to the Congress: Medicare Payment Policy, March 2026, executive summary.

MedPAC recommends a 2027 update 0.5 percentage points above current law, which would still leave 2027 rates about 1.2% to 1.7% below 2026. MGMA's June 2026 article cites 80% of medical groups reporting that Medicare pays below their cost to deliver care, which is the groups' own view (MGMA, 2026). Because the rule is not final, budget 2027 on about 1.7% lower Medicare fee-schedule rates until the final rule says otherwise. These are national Medicare rates only.

What happens to telehealth and DEA prescribing rules?

Two separate rules apply. HHS says recent legislation extended many temporary Medicare telehealth rules, which it calls flexibilities, through December 31, 2027. They include at-home visits and audio-only visits. At-home behavioral telehealth is now permanent, but its in-person visit rule is waived only through that date (HHS, 2026). The page does not say what happens after.

The DEA regulates controlled substances, medicines with a risk of misuse. Its fourth temporary extension of pandemic-era telemedicine prescribing rules runs through December 31, 2026 (DEA and HHS, 2025). We found no further extension or final rule as of October 6, 2026, though DEA's final special registration rule has been at White House review since August 25, 2026 and its text is not public. Without one, pre-pandemic in-person evaluation limits would return on January 1, 2027.

The federal regulatory agenda lists a permanent DEA rule, called a special registration, for prescribing controlled medicines by telemedicine. The target for a final version is November 2026, and the DEA is reviewing more than 6,400 comments (federal agenda, 2026). We do not know what the final rule will require. This is not legal advice. What a clinic can do: if you prescribe controlled medicines by video, follow step 2 of the 90-day plan below.

What does MIPS mean for a small practice?

A clinician or group must report to MIPS only if it bills Medicare Part B and exceeds all three low-volume limits (our reading of the rules). Part B is the part of Medicare that pays for outpatient care. The limits are: more than $90,000 in Part B allowed charges, more than 200 Part B patients and more than 200 covered services (42 CFR 414.1305). Allowed charges are the amounts Medicare allows for services.

Clinics with little Part B volume may sit outside MIPS entirely. A group that exceeds one or two limits, but not all three, may opt in under 42 CFR 414.1310.

The performance year is the year Medicare scores, and the payment change follows two years later. For the 2026 performance year, the threshold is 75 points, and a lower score brings a penalty of up to 9% (42 CFR 414.1405). Small practices get 6 bonus quality points if they submit at least one quality measure (42 CFR 414.1380).

There is a timing trap. Improvement activities, one of the scored categories, need at least 90 continuous days. Promoting Interoperability, the category about using an EHR and sharing data, needs at least 180 continuous days (42 CFR 414.1320). Counting back from December 31, 2026, a 90-day window must start by October 3, and a 180-day window by July 5.

That date arithmetic is ours, so confirm on qpp.cms.gov and do not act on it alone. First check the three limits, then plan 2027. We did not review 2027 MIPS changes.

What is changing in Medicaid?

The 2025 federal budget law (Public Law 119-21) changes Medicaid. Medicaid expansion is the option that 40 states and DC chose to cover more low-income adults, and the work rule also reaches adults in certain section 1115 demonstration programs, so CMS counts 43 states and DC. Adults ages 19 to 64 covered through expansion must prove they work, serve or study. That means at least 80 hours a month of work, community service or a work program, or half-time study, and there are other ways to qualify. CMS's rule took effect July 31, 2026, and states must start by January 1, 2027, though HHS may give a state a good-faith delay that ends no later than December 31, 2028. Some people are excepted, such as parents of children under 14. Twenty-five states and DC are suing over parts of the rule, including how it defines medically frail; a federal judge declined to pause it on July 30, 2026, and the case continues (STAT, 2026) (CMS, 2026; CMS, 2025).

For renewals scheduled on or after January 1, 2027, expansion adults renew every 6 months. For applications made on or after that date, their retroactive coverage shrinks to 1 month. Provider taxes are taxes states charge health care providers. Limits on them are scheduled to begin October 1, 2026 under the same law, per the CMS bulletin (CMS, 2025). More renewals and work checks give more chances for coverage to lapse. We found no estimate of the effect on clinics, so add eligibility checks before January 2027.

Which rules affect cash-pay and membership clinics?

CMS says clinics treating patients who pay without insurance usually must give a good faith cost estimate. That applies when care is scheduled 3 or more business days ahead, or when the patient asks. A patient may be able to dispute a bill that is at least $400 above the estimate (CMS, 2026). That page is written for patients, so check the provider rule.

IRS Notice 2026-5 covers membership care. Since January 1, 2026, a person with a high-deductible plan can keep contributing to a health savings account (HSA) while paying a direct primary care membership. The account can pay up to $150 a month for one person, or $300 for an arrangement covering more than one (IRS, 2025). It is guidance, not tax advice, so give written estimates and confirm that your membership qualifies.

What is the cyber risk for a small clinic?

A breach is when patient information is seen, taken or shared by someone who should not have it. Ransomware is software that locks a clinic's files until a ransom is paid. A security risk analysis is a written review of where patient data could be lost, stolen or seen by the wrong person, and what protects it. Short answer: breaches are routine, regulators have acted against at least one very small provider, and the first step is a written risk analysis.

How common are breaches, and how do they happen?

The HHS breach portal is the public list of breaches that affect 500 or more people. Our own tally of its rows (read October 6, 2026; counted by submission date; method in our State of EHR 2026 report) shows about 800 breaches submitted for 2025. HIPAA Journal, an industry news site, made its own preliminary tally of the same list and counted 710 for 2025. Its count is lower than ours, and we have not reconciled the two. Because it is a private tally, we treat it as the weakest source in this report.

In HIPAA Journal's 710, 57.5% happened at healthcare providers, 35.8% at business associates and 6.5% at health plans (HIPAA Journal, 2025). Business associates are vendors that handle patient data for a clinic. In our portal tally, the middle breach at a healthcare provider affected about 4,800 people, so about half of those breaches affected fewer people.

Ransomware's share of reported breaches fell from 31% in 2021 (222 of 715) to 11% in 2024 (61 of 566, through October 31). Yet those ransomware breaches accounted for 69% of patient records affected in 2024, counted through October 31 (JAMA Network Open, 2021 to 2024). The portal has no clinic-size field, so it cannot show risk by practice size.

Why it matters: about half of the breaches at healthcare providers involved about 4,800 people or fewer, a number a small clinic can reach. What a clinic can do: use the checklist in the next section.

Do regulators act against small practices?

Yes, in at least one case. OCR resolved a case with Vision Upright MRI, a one-facility imaging center in San Jose, California. The resolution agreement lists $25,000, while OCR's May 15, 2025 press release says $5,000. The agreement also set a corrective action plan, a list of fixes OCR requires the center to carry out. OCR also found that the center did not notify affected people within 60 days. The agreement records HHS's finding, not an admission of liability, that the center

has never conducted an accurate and thorough assessment of the potential risks and vulnerabilities

HHS OCR, Resolution Agreement with Vision Upright MRI, listed May 15, 2025; OCR notified the center of its investigation on December 1, 2020.

OCR's index also lists 2025 settlements with a neurology practice, a behavioral health provider and a surgery center, as headlines only. One case is a thin base. The failure named in that case is a missing accurate and thorough risk analysis, which a clinic can do for itself.

HHS published a proposal for a stricter HIPAA Security Rule on January 6, 2025. It is not final: the federal agenda lists final action for July 2027 and files the rule under long-term actions (federal agenda, 2026). Today's rule applies, and the risk analysis requirement already exists.

What should a small clinic do first?

HHS publishes a cybersecurity guide for small healthcare organizations, and its 2023 edition was still the one HHS linked on October 6, 2026 (HHS 405(d), 2023). The table lists its five threats and ten practices.

HHS 405(d) guide, 2023 editionItems
Five threatsSocial engineering (tricking staff into giving access); ransomware; loss or theft of equipment or data; insider data loss; attacks on connected medical devices
Ten practicesEmail protection (filters for scam emails); endpoint protection (security software on every computer and phone); access management (who can log in, and how); data protection and loss prevention (backups, encryption and limits on where data can go); asset management (a list of every device and program); network management (securing Wi-Fi and internet connections); vulnerability management (installing security fixes); incident response (a written plan for a breach); connected medical device security; cybersecurity oversight, which covers risk assessment, training and cyber insurance. The notes in parentheses are our plain-word summaries.

The guide says:

the data suggests smaller ambulatory practices are also targeted and can suffer greater proportional damages

HHS 405(d) Program, Cybersecurity Practices for Small Healthcare Organizations, 2023 edition.

It gives no statistic behind that sentence, and it is voluntary guidance, not a regulation. It also says cyber insurance does not replace the controls. So start with a written risk analysis and the ten practices, because the risk analysis is the gap OCR named above.

How does it look outside the United States?

Four other countries have enough verified sources for a short look. The figures differ in year and scope, so we do not rank the countries. This is not legal advice.

Nigeria. Under the Nigeria Data Protection Act 2023, an organization that controls personal data must tell the Data Protection Commission within 72 hours of learning of a breach. That applies to breaches likely to risk people's rights, and the organization must tell affected people right away when the risk is high. For organizations the Commission classes as of major importance, the penalty ceiling is the greater of 10,000,000 naira or 2% of the previous year's gross revenue. The Act sets the test for that class, and we did not review it. For others it is the greater of 2,000,000 naira or 2% (Nigeria Data Protection Act, 2023).

A World Health Organization profile estimates private providers deliver 70% of services with 35% of facilities (WHO, 2025). Out-of-pocket spending, paid directly by patients, is above 75% of health spending (WHO, 2025). Neither page gives a data year for these figures.

England. The National Health Service (NHS) has 6,143 GP (family doctor) practices as of August 2026. The British Medical Association (BMA) counts 1,480 independent community GP practices closed or merged since 2015, though it warns long-term counts are not comparable. GP partners, the owner-doctors, counted as full-time equivalents (one full-time doctor is 1.0), were 15,057 against 15,393 a year earlier, a fall of 336 (BMA, 2026).

In its 2026/27 contract letter, NHS England said online consultation tools must not cap how many requests patients can send during core hours (NHS England, 2026). Core hours are the hours the NHS contract requires a practice to be open.

Australia. In 2024-25, 77.9% of non-referred GP services (visits without a referral from another doctor) were bulk billed, meaning Medicare paid in full. Only 49.1% of patients were fully bulk billed (Productivity Commission, 2026). Health service providers filed 225 of 1,205 data breach notifications in 2025, or 19%, the largest share of any sector (OAIC, 2026).

Canada. In a 2025 survey released in July 2026, 91% of Canadians were interested in electronic record access, 82% in e-prescriptions and 75% in online booking. That shows interest, not use (Canada Health Infoway, 2026). Under the federal Personal Information Protection and Electronic Documents Act (PIPEDA), organizations must report breaches with a real risk of significant harm to the Privacy Commissioner. They must also keep breach records for two years (Privacy Commissioner of Canada, 2025). Provincial health privacy laws can apply to clinics instead, and we did not check them.

Why it matters: if you treat patients in these countries, local privacy and breach rules apply to you, and they differ from HIPAA. What a clinic can do: ask your software vendor which country's rules it supports.

What This Means for Your Clinic: What Should You Do in the Next 90 Days?

Do the dated, low-cost steps first, then the money steps. Each step has its reason.

  1. This week: check whether MIPS applies to you. Test the three low-volume limits (42 CFR 414.1305). If you exceed all three, confirm on qpp.cms.gov what is still possible for 2026 and plan 2027, because the 2026 windows may have closed (42 CFR 414.1320).
  2. This week: if you prescribe controlled medicines by video, write a plan for January 1, 2027. No extension or final rule had appeared by October 6, 2026, and in-person limits would return without one (DEA and HHS, 2025).
  3. Weeks 1 to 4: do or update your security risk analysis, and write it down. Start with email, access and backups from HHS's ten practices. OCR's May 2025 case named the lack of an accurate and thorough risk analysis (HHS OCR, 2025).
  4. Weeks 1 to 4: list every vendor and video tool that touches patient data, and confirm a signed BAA. In 2024, 25.7% of physicians used a telemedicine platform not integrated with their EHR, and such a tool needs a BAA too (NCHS, 2024).
  5. Weeks 2 to 6: appeal denied prior authorizations, ask payers for the denial reason in writing, and fix registration data. KFF found more than eight in ten appealed Medicare Advantage denials were overturned in each year from 2019 through 2024 (KFF, 2024). Missing or inaccurate data was the top denial cause in Experian Health's 2025 survey (Experian Health, 2025).
  6. Weeks 2 to 6: review the A/R aging report (unpaid bills by age) weekly, and compare your missed-visit rate with the 14.2% study median (Jad et al., 2026). More groups saw days in A/R rise than fall in July 2026 (MGMA, 2026).
  7. Weeks 4 to 8: cross-train front desk and billing, and write down the steps of each front-desk and billing task. In 2026, MGMA polls found medical assistants harder to hire for 56% of groups (MGMA hiring poll, 2026). Turnover was higher for 28% and lower for 30% (MGMA turnover poll, 2026).
  8. Weeks 6 to 10: budget 2027 on about 1.7% lower Medicare rates (CMS, 2026), and ask every software vendor for an all-in monthly price. Include claims fees, AI notes and card fees. The therapy median card fee is 3.35% of a payment (n 14, without ClinikEHR and Osmind) (EHR cost calculator, 2026).
  9. Weeks 8 to 13: add Medicaid eligibility checks, give good faith estimates to self-pay patients, and re-check the final Medicare, DEA and HIPAA rules. Medicaid renewals for expansion adults move to every 6 months for renewals scheduled on or after January 1, 2027 (CMS, 2025).

What We Still Do Not Know

  • There is no 2026 national count of independent clinics, and each source defines small differently.
  • MGMA polls give no practice size, and we found no margin levels for clinics under 15 clinicians.
  • The federal breach list has no clinic-size field, so it cannot show breaches by practice size.
  • The final 2027 Medicare, DEA and HIPAA Security Rule outcomes are not out. The November 1 date for the Medicare rule comes from a summary by the American Academy of Family Physicians, not a federal page.
  • The 2024 County Business Patterns table was not on the Census data site on October 6, 2026. So payroll counts are for 2023, and nonemployer counts are for 2024.
  • The calculator's peer benchmark has no combination with the 5 answers needed (0 of 393 on October 6, 2026), so there is no user-reported software spend.
  • Quote-only vendors sit outside every calculator median and may price higher.
  • DEA sent its final special registration rule to White House review on August 25, 2026; it was still pending on October 6 and its text is not public.
  • We could not open the AMA article directly in a browser, and we read it through a text-extraction tool. Other pages were also read through summary tools, so please check any figure you rely on against the linked page.

Frequently Asked Questions

How many small medical practices are there in the United States?

It depends on the definition. In 2023, Census counted 218,066 physician offices with payroll, and about 189,000 (86.7%, our arithmetic) had fewer than 20 employees. For dental offices it was 135,665, with 95.1% under 20. Tax-return counts, such as 245,987 nonemployer physician-office firms in 2024, are not clinics, so do not add them. Medicare's MIPS program calls 15 or fewer clinicians per tax ID small.

What percentage of doctors are in private practice?

The AMA found 42.2% of physicians were in private practice in 2024, down from 60.1% in 2012, and 47.4% worked in practices of 10 or fewer physicians. A separate analysis by the Physicians Advocacy Institute and Avalere Health looked at January 1, 2026. It found that hospitals or corporate entities employed 82.0% of physicians and owned 63.9% of practices. They measure different things, so do not compare them.

What are the biggest challenges for independent practices in 2026?

Costs, hiring and payer friction. In 2026 MGMA polls, 84% of groups saw higher costs, up about 11% on average. Also, 56% said medical assistant hiring got harder, and 44% said prior authorization got slower. In its own 2025 survey of 250 professionals, Experian Health found 41% of providers with denial rates of 10% or higher. The MGMA polls may lean toward groups larger than 15 clinicians.

Does a small practice have to report to MIPS?

Only if it bills Medicare Part B, the part of Medicare that pays for outpatient care, and exceeds all three low-volume limits. The limits are more than $90,000 in Part B allowed charges (what Medicare allows for services), more than 200 Part B patients and more than 200 covered services. A clinic that exceeds one or two limits, but not all three, may choose to opt in. Small practices, with 15 or fewer clinicians, get 6 quality bonus points if they submit at least one quality measure. The 2026 performance year has a 75-point threshold and a penalty of up to 9%, so confirm your status on qpp.cms.gov.

Will Medicare pay doctors less in 2027?

CMS, the agency that runs Medicare, proposed a 2027 conversion factor of $32.84, down 1.68% from $33.40, for clinicians outside advanced payment models. The main reason is that a one-year 2.50% increase for 2026 expires. It is a proposal, and a summary from the American Academy of Family Physicians puts the final rule at about November 1, 2026. The final rule reached White House review on September 29, 2026 and was still pending on October 6. MedPAC, the independent advisor to Congress on Medicare, says current payments look adequate and recommends a 2027 update 0.5 percentage points above current law, which would still leave 2027 rates about 1.2% to 1.7% below 2026. This covers Medicare only, and commercial and Medicaid rates differ.

Can I still prescribe controlled substances by telehealth after 2026?

DEA's temporary telemedicine prescribing rules run through December 31, 2026, and as of October 6, 2026 we found no further extension or final rule. DEA's final special registration rule has been at White House review since August 25, 2026. DEA targets a final special registration rule for November 2026, a permanent rule for prescribing controlled medicines by telemedicine. Without a new rule or extension, in-person evaluation limits return on January 1, 2027. Many of Medicare's temporary telehealth rules are separate and run through December 31, 2027. This is general information, not legal advice.

How much does EHR software cost for a small clinic?

In our calculator, a solo therapist's median is $86 a month across 7 vendors with published prices, leaving out ClinikEHR; with it, the median is $87 across 8. Adding an AI note-taker raises the median without ClinikEHR to $120. Two prescribing clinicians in primary care come to a median of $398 a month across 7 ($376 across 8 with ClinikEHR). Only 44 of the 107 full EHRs publish a price. Add card fees: for therapy the median is 3.35% of each $100 payment across 14 vendors, leaving out ClinikEHR (5.10%, the highest) and Osmind.

Are small clinics really targeted by hackers?

HHS says its data suggest smaller outpatient (ambulatory) practices are also targeted and can suffer greater proportional damages, though it gives no statistic for that. OCR resolved a May 2025 case with a one-facility imaging center that, OCR found, had never done an accurate and thorough risk analysis. Our tally of the HHS breach portal lists about 800 breaches of 500 or more people for 2025, and in HIPAA Journal's separate tally, 57.5% were at healthcare providers. The first step is a written risk analysis, a written review of how patient data could be lost or stolen and what protects it.

Conclusion

The state of small clinics in 2026 is one of rising costs and an uncertain payment picture. Costs rose for 84% of the medical groups MGMA polled, which did not report practice size. CMS proposes 1.68% lower Medicare rates for 2027 for clinicians outside advanced payment models, after a rise in 2026. Jobs are hard to fill, and ownership keeps moving toward hospitals and corporations. Three federal dates still sit ahead in 2026, and the cash risks in your own billing are denials, slow payment and missed visits.

Start with the dated, low-cost steps: check your MIPS status, plan for the DEA date and write a security risk analysis. Then do the money steps: appeals, front-desk data, cross-training and an all-in software price. The data have limits, listed above, so check each source before you act.

ClinikEHR is the EHR we build. Its public pricing page lists a Free plan at $0 for up to 50 clients and 2 staff, with no card needed. Essential is $99.90 a month and Team is $250 a month, month to month. You can compare it with other products in the EHR cost calculator.

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Statistics are as of the dates shown. Check the linked sources for updates. This is general information, not legal or medical advice.

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