Which factor contributes to financial insecurity in many primary care practices?

High malpractice insurance costs significantly contribute to financial insecurity in many primary care practices because they represent a substantial and often unpredictable expense for healthcare providers. Malpractice insurance premiums can increase dramatically over time due to factors like rising litigation costs, changes in legal environments, and the overall risk profile of the practice. This financial burden can strain practice resources, divert funds away from essential services, and complicate budgeting efforts, leading to greater overall financial instability.

While increasing demand for services can sometimes result in higher revenues, it can also lead to added pressures on resources and operational capacity, which can negate some of the financial benefits. High reimbursement rates from insurers would generally ease financial pressures rather than contribute to insecurity, and low patient turnover rates could impact revenue consistency but are not as directly linked to the overarching financial burdens posed by malpractice insurance. Thus, the significant impact of malpractice insurance costs on the financial health of a primary care practice makes it the most relevant factor in this context.