Medical Practice Costs Creep Higher
A year-to-year comparison of cost increases at both physician- and hospital-owned medical practices shows senior executives and administrators are increasingly being called on to build efficiencies.
MGMA-ACMPE (formerly the Management Group Medical Association) released on Wednesday its annual report on cost data gathered from member and non-member practices. Published since the mid-1950's, the Cost Survey for Multispecialty Practices: 2012 Report Based on 2011 Details, is a 300+ page benchmark report used by practices to measure how their spending and cost increases compare to their peers.
Overall, says Todd Evenson, director of data solutions for MGMA-ACMPE, there's been a "64% increase in total operating costs for multi-specialty practices" since 2001. In comparison, 2011 shows a modest 1.27% increase from 2010 for physician-owned practices.
In real dollars, that amounts to $528,182 in operating costs per full-time employee physician. Hospital/Integrated Delivery System (IDS)-owned organizations saw a 6.45% increase in operating costs, or $387,586. Evenson cautions against comparing the operating costs of the two models because they operate so differently.
Instead, Evenson says it's more significant to look at the single-digit increases in growth of each, saying the 2011 figures show "medical groups are laboring to bend the cost-growth curve."
- Federal Appeals Court Mulls Observation Status
- How the Military's EHR Reboot Will Impact Interoperability
- HCA to Acquire CareNow Urgent Care Centers
- How One Health System Saved $3.5M in Benefits Costs
- BCBS Tries New Drug Contracting Model
- Abington Health, Jefferson Health Plan '100% Equal' Merger
- Dental Board Case Before SCOTUS Has Far-Reaching Implications
- The Case for Recycling Surgical Supplies
- 'Leadership Gap' Threatens MU Momentum, Says AMA
- Ballot Initiative Pits Providers Against Payers in SD