Skip To Navigation Skip To Content Skip To Footer
    Hire Physicians Who Fit, Succeed and Stay - Recruit a Physician - Jackson Physician Search and MGMA
    Insight Article
    Home > Articles > Article
    David N. Gans
    David N. Gans, MSHA, FACMPE

    Over the past months, the Data Mine column addressed the problems medical groups are experiencing with increased expenses and limited opportunities to increase payment.  The October 2023 article1 and the January 2024 article2 describe serious problems affecting private and hospital-based medical groups. Fortunately, while some practices are experiencing serious problems, many medical groups are managing to “keep their heads above water” and some are thriving.

    While practices have limited ability to increase payment, they can attempt to increase productivity. However, increasing productivity usually means increasing staffing levels, which increases overhead costs. The previous articles described how staffing levels have remained essentially constant, so it appears that practices are finding other ways to defy gravity and improve overall financial performance.

    Figure 1

    Figure 1 provides a 37-year retrospective look at total medical revenue, total operating cost and total medical revenue after operating cost per full-time-equivalent (FTE) physician for physician-owned multispecialty groups. For a better comparison over time, the financial data are standardized to 2022 dollars using the Consumer Price Index — All Urban Consumers (CPI-U), the most commonly used indicator of inflation. During these 37 years, the CPI-U has almost tripled, as inflation has affected all parts of the economy; by standardizing the historic data to 2022 dollars, the financial information on the graph is comparable over time.

    Sign in to access this material

    Sign In Become a Member
    David N. Gans

    Written By

    David N. Gans, MSHA, FACMPE

    David Gans, MSHA, FACMPE, is a national authority on medical practice operations and health systems for the Medical Group Management Association (MGMA), the national association for medical practice leaders. He is an educational speaker, authors a regular Data Mine column in MGMA Connection magazine and is a resource on all areas of medical group practice management for association members. Mr. Gans retired from the United States Army Reserve in the grade of Colonel, is a Certified Medical Practice Executive and a Fellow in the American College of Medical Practice Executives.

    Explore Related Content

    More Insight Articles

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