MGMA Survey: Medical practices cut operating expenditures 2.2. percent in 2010
Practices bracing for 29 percent cut to Medicare payments and uncertain healthcare environment
ENGLEWOOD, Colo. Sept. 20, 2011—Medical practices cut general operating expenditures 2.2 percent in 2010, according to the Medical Group Management Association’s (MGMA) Cost Survey for Multispecialty Practices: 2011 Report Based on 2010 Data. However, since 2001, general operating costs have increased by 52.64 percent to $252,629, exceeding revenue gains during that timeframe.
Total medical revenue in multispecialty practices not owned by hospitals or integrated delivery systems (IDSs) increased 45.87 percent since 2001 and 8.5 percent since 2009, likely as a result of monitoring operating expenses closer than ever. Spending on furniture and equipment expenses decreased 23.37 percent since 2010, and drug supply costs decreased 8.52 percent. Medical practices reported rising expenditures for total support staff (increased 4.78 percent since 2010) and medical and surgical supplies (increased 7.43 percent since 2010).
“The tenor of these findings speaks to an environment of conservatism,” said William F. Jessee, MD, FACMPE, MGMA president and CEO. “In an effort to reinforce themselves against a draconian proposed cut to Medicare payments, as well as other factors, they have worked to reduce operating expenses, and renegotiate rates with vendors, supply companies and insurance carriers. This means medical practices are not spending as much money as they were last year, which isn’t necessarily a good thing. There is only so much more practices can do to cut expenditures without inhibiting their ability to run a successful, innovative practice.”
MGMA’s Cost Survey includes data from more than 44,000 providers and 1,994 groups. The report includes practice data by full-time-equivalent (FTE) physician, provider, total or work RVUs, patients and square footage, as well as complete data on staffing ratios and costs. The survey also includes an IDS section that highlights staffing, cost and productivity data points for IDS-owned multispecialty practices.
Note: MGMA surveys depend on voluntary participation and may not be representative of the industry. Readers are urged to review the entire survey report when making conclusions regarding trends or other observations.
Editorial copies of the report are available to qualifying media. Contact Liz Boten, media relations representative, at email@example.com to request a printed copy of the survey. Visit MGMA’s store to purchase copies of the Cost Survey for Multispecialty Practices: 2011 Report Based on 2010 Data or Cost Survey for Single-Specialty Practices: 2011 Report Based on 2010 Data.
Medical Group Management Association (MGMA) is the premier membership association for professional administrators and leaders of medical group practices. Since 1926, MGMA has delivered networking, professional education and resources, and political advocacy for medical practice management. Today, MGMA’s 22,500 members lead 13,600 organizations nationwide in which some 280,000 physicians provide more than 40 percent of the healthcare services delivered in the United States.
MGMA’s mission is to continually improve the performance of medical group practice professionals and the organizations they represent. MGMA promotes the group practice model as the optimal framework for healthcare delivery, assisting group practices in providing efficient, safe, patient-focused and affordable care. The American College of Medical Practice Executives (ACMPE) is the standard-setting and certification body of the Medical Group Management Association (MGMA), and promotes the professional growth of leaders. By developing the Body of Knowledge for Medical Practice Management, ACMPE provides a central framework for MGMA resources. MGMA is headquartered in Englewood, Colo., and maintains a government affairs office in Washington, D.C. Please visit mgma.com.