Skip To Navigation Skip To Content Skip To Footer
    Advocacy Letter
    Home > Press Statements & Advocacy Letters > Advocacy Letters

    May 23, 2024 

    The Honorable Vern Buchanan The Honorable Lloyd Doggett
    Chairman Ranking Member
    Committee on Ways and Means Committee on Ways and Means
    Subcommittee on Health Subcommittee on Health
    U.S. House of Representatives U.S. House of Representatives
    1100 Longworth HOB 1100 Longworth HOB
    Washington, DC 20215 Washington, DC 20215


    Re: MGMA Statement for the Record — House Committee on Ways and Means Subcommittee on Health Hearing, “The Collapse of Private Practice: Examining the Challenges Facing Independent Medicine”


    Dear Chairman Buchanan and Ranking Member Doggett:

    On behalf of our member medical group practices, the Medical Group Management Association (MGMA) would like to thank the Subcommittee for holding this important hearing on the challenges facing independent medicine. Numerous policies and extraneous factors coalesce to undermine the ability of independent medical groups to remain financially viable — cuts to Medicare reimbursement, staffing shortages across clinical and nonclinical positions, substantial administrative burden, inflation, and more. We appreciate the Subcommittee for examining policies that can help bolster independent practices who remain a bedrock of our healthcare system. 

    With a membership of more than 60,000 medical practice administrators, executives, and leaders, MGMA represents more than 15,000 medical group practices ranging from small private medical practices to large national health systems representing more than 350,000 physicians. MGMA’s diverse membership uniquely situates us to offer the following policy recommendations.

    Independent practices are vital to the communities they serve yet are rapidly becoming extinct. Over the past decade, physicians fed up with government overregulation, payer red-tape, and declining reimbursement have sold their practices to health systems, hospitals, insurers, and private equity firms at an alarming rate. They cannot survive as small businesses. Health systems can maintain reserves to weather the next economic storm. Most independent practices can’t carry cash reserves year-over-year or they would face double taxation. It’s common for hospital systems to run medical practices as a loss-leader, often at yearly losses in excess of $200,000 or more per FTE physician. They subsidize the shortfalls with more lucrative revenue from inpatient services, health insurance plans, and ancillary referrals. If many of these system-owned physician practices were run independent from non-ambulatory subsidies, they would quickly go out of business. This environment illustrates a broken system that forces independent practices to make difficult decisions about their ownership structure and erodes their ability to stay in operation.   

    View the full letter

    More Advocacy Letters

    Ask MGMA
    An error has occurred. The page may no longer respond until reloaded. Reload 🗙