Skip to main content

Health IT Costs Surpass $32,500 Per Physician

News  |  By HealthLeaders Media News  
   August 11, 2016

Technology costs at physician-owned multispecialty practices have risen by more than 40% since 2009, MGMA survey data shows.

New data from the Medical Group Management Association shows that physician-owned multispecialty practices in 2015 were spending more than $32,500 per full-time physician on the staff, equipment, maintenance, and supply expense necessary to implement healthcare information technology and services.

While the largest increase in tech costs took place between 2010 and 2011, when the HITECH Act took effect, costs continue to rise at a slower pace.

In recent years, declining government incentives have required practices to bear more of the cost to upgrade and maintain health information technology, MGMA noted.

"While technology plays a crucial role in helping healthcare organizations evolve to provide higher-quality, value-based care, this transition is becoming increasingly expensive," said Halee Fischer-Wright, president and CEO of the Medical Group Management Association, in a prepared statement.

"We remain concerned that far too much of a practice's IT investment is tied directly to complying with the ever-increasing number of federal requirements, rather than to providing better patient care. Unless we see significant changes in the final MIPS/APM rule, practice IT costs will continue to rise without a corresponding improvement in the care delivery process."

Overall, since 2009, technology costs at physician-owned multispecialty practices rose by more than 40%, according to MGMA survey data during that period of time.

IT staff expenses rose at the faster pace of 47%. MGMA suggested that increased staff costs mean that larger tech investments do not yet result in significant administrative efficiencies at practices.

The continuing IT cost rise is not the only rising cost of operating a physician practice. Total physician-owned multispecialty practice operating costs increased by almost 15% in 2015, MGMA said. Total revenue at these same practices rose by only 10% last year, MGMA reported.

Physician-owned multispecialty practices that are part of an accountable care organization reported lower costs and higher total medical revenue after operating costs in 2015, versus comparable 2014 data, MGMA said.

Tagged Under:


Get the latest on healthcare leadership in your inbox.