Product type:

AllBooksEventsOnline CoursesWebinarsPackages
Medical Group Management Association

Data Insights

Understand the past and present to propel your practice into the future.

Make informed decisions for your practice through insights and benchmarks from industry-leading data analysis, reports and surveys.

Expenses

Provide the operating cost (to the nearest whole dollar).
Do not Include:
  • “Cost of sales and/or cost of other medical activities”;

  • Support staff cost, which is included in the Business Operations, Front Office, Clinical and Ancillary staff sections;

  • Advanced practice provider cost, which is included in the Providers section;

  • Cost included in “Purchased services for capitation patients”; and

  • “Nonmedical cost.”
     

Information technology [6800-6860]11

Cost of practice-wide data processing, computer, telephone, and telecommunications services.
Include:

  • Cost of local and long-distance telephone, radio paging, and internet service providers;

  • Rental and/or depreciation cost of major data processing, computer and telecommunications furniture, equipment, hardware, and software subject to capitalization;

  • Hardware and software repair and maintenance contract cost;

  • Cost of data processing services purchased from an outside service bureau;

  • Cost of data processing supplies and minor software and equipment not subject to capitalization; and

  • Cost of IT purchased services including maintaining of EHRs and patient portals.

Do not Include:

  • Cost of specialized information services equipment dedicated for exclusive use in the departments of clinical laboratory, radiology, and imaging, or other ancillary services departments. Such cost is included in “Clinical laboratory,” “Radiology and imaging,” and “Other ancillary services”; or

  • Cost of contract programmers, which is included in “Total contracted support staff,” Cost column.
     

Drug supply [7210-7213]11

Cost of drugs purchased for general practice use.
Include:

  • Cost of chemotherapy drugs, allergy drugs, and vaccines used in providing medical/surgical services.

Do not Include:

  • Cost of specialized supplies dedicated for exclusive use in the departments of clinical laboratory, radiology, and imaging, or other ancillary services departments. Such cost is included in “Clinical laboratory,” “Radiology and imaging,” and “Other ancillary services”; or

  • Cost of pharmaceuticals sold to patients primarily for use outside the practice and not used in providing medical/surgical services. Examples include prescription drugs. Such cost is included in “Cost of sales and/or cost of other medical activities.”
     

Medical and surgical supply [7200, 7220-7224, 7720]11

Cost of supplies purchased for general practice use.
Include:

  • Cost of medical/surgical supplies and instruments used in providing medical/surgical services; and

  • Cost of laundry and linens.

Do not Include:

  • Cost of specialized supplies dedicated for exclusive use in the departments of clinical laboratory, radiology and imaging, or other ancillary services departments. Such cost is included in “Clinical laboratory,” “Radiology and imaging,” and “Other ancillary services”;

  • Cost of pharmaceuticals, medical supplies and equipment sold to patients primarily for use outside the practice and not used in providing medical/surgical services. Examples include prescription drugs, hearing aids, optical goods, and orthopedic supplies. Such cost is included in “Cost of sales and/or cost of other medical activities”; or

  • The cost of any equipment subject to depreciation. Such cost is reported as a subset in “Information technology,” “Furniture and equipment,” “Clinical laboratory,” “Radiology and imaging,” and “Other ancillary services.”
     

Building and occupancy [6100, 6120-6190]11

Cost of general operation of buildings and grounds.
Include:

  • Rental, operating lease, and leasehold improvements for buildings and grounds;

  • Interest paid on loans for real estate used in practice operations;

  • Cost of utilities such as water, electric power, space heating fuels, etc.;

  • Cost of supplies and materials used in housekeeping and maintenance; and

  • Other costs such as building repairs and security systems.

Do not Include:

  • Interest paid on short-term loans, which is included in “Miscellaneous operating cost”;

  • Interest paid on loans for real estate not used in practice operations, such as nonmedical office space in practice-owned properties. Such interest is included in “Nonmedical cost”;

  • Cost of producing revenue from sources such as parking lots or leased office space from practice- owned properties. Such cost is included in “Nonmedical cost”; or

  • Depreciation costs.
     

Building depreciation [6110-6113]11

Depreciation cost for buildings and grounds.
Do not Include:

  • Interest paid on short-term loans, which is included in "Miscellaneous operating cost”;

  • Interest paid on loans for real estate not used in operations such as nonmedical office space in practice-owned properties;

  • Rental, operating lease, and leasehold improvements for buildings and grounds;

  • Interest paid on loans for real estate used in ASC operations;

  • Cost of utilities such as water, electric power, and space heating fuels;

  • Cost of supplies and materials used in housekeeping and maintenance; or

  • Other costs such as building repairs and security systems.
     

Furniture and equipment [6200, 6220-6230, 7100, 7120,7130, 7710, 7712-7713]11

Cost of furniture and equipment in general use in the practice.

Include:

  • Rental cost of furniture and equipment used in reception areas, patient treatment/exam rooms, physician offices, and administrative areas; and

  • Other costs related to clinic furniture and equipment, such as maintenance cost.

Do not Include:

  • Cost of specialized furniture and equipment dedicated for exclusive use in the information technology, clinical laboratory, radiology and imaging, or other ancillary services departments. Such cost is reported as a subset in “Information technology,” “Clinical laboratory,” “Radiology and imaging,” and “Other ancillary services”; or

  • Depreciation costs.
     

Furniture and equipment depreciation [6210, 7110, 7711]11

Depreciation cost of furniture and equipment in general use in the practice.
Include:

  • Depreciation cost of furniture and equipment used in reception areas, patient treatment/exam rooms, physician offices, and administrative areas.

Do not Include:

  • Cost of specialized furniture and equipment dedicated for exclusive use in the information technology, clinical laboratory, radiology and imaging, or other ancillary services departments. Such cost is included in “Information technology,” “Clinical laboratory,” “Radiology and imaging,” and “Other ancillary services”; or

  • Other costs related to clinic furniture and equipment such as maintenance cost.
     

Administrative supplies and services [6300-6336, 6346, 6350-6353, 6356, 6358, 6361, 6363-6524, 7230-7240, 7730]11

Cost of printing, postage, books, subscriptions, administrative and medical forms, stationery, payroll services, practice regulatory, licensure and accreditation, employee relations dinners, picnics, entertainment, practice uniforms, business vehicle/transportation, recruiting, job position classified advertising, moving costs and other administrative supplies and services

Include:

  • Purchased medical transcription services; and

  • Purchased answering services.
     

Professional liability insurance premiums [6720-6726]11

Premiums paid or self-insurance cost for malpractice and professional liability insurance for practice physicians, advanced practice providers, and employees.
 

Other insurance premiums [6700-6718]11

Cost of other policies such as cyber insurance, fire, flood, theft, casualty, general liability, officers’ and directors’ liability, and reinsurance.
 

Legal fees [6342]11

Fees for professional legal services performed on a one-time or sporadic basis, and are not employees of the organization.

Include:

  • Fees related to legal services paid to attorneys who are not employees of the organization.
     

Consulting fees [6345]11

Fees for professional consulting services performed on a one-time or sporadic basis.

Include:

  • Fees for management, financial, and other outside consulting services.
     

Outside professional fees [6340-6341, 6343-6344, 7830-7839]11

Fees for professional services performed on a one time or sporadic basis.
Include:

  • Fees for accounting services; and

  • Fees for actuarial consultants, and other professional fees not listed.

Do not Include:

  • Information services, architectural and public relations consultant fees. Such costs are included in “Information technology,” “Building and occupancy,” and “Promotion and marketing”;

  • Cost for contracted support staff, which is reported as “Total contracted support staff,” Cost column; or

  • Cost for contracted physicians and locum tenens, which is reported as “Total physician” FTE and Cost.
     

Promotion and marketing [6600]11

Cost of promotion, advertising and marketing activities, including patient newsletters, information booklets, flyers, brochures, yellow page listings, and public relations consultants.
 

Clinical laboratory [7400-7440]11

Cost of clinical laboratory and pathology procedures defined by CPT codes 80047-89398, 36415, and 36416.
Include:

  • Rental and/or depreciation cost of major furniture and equipment subject to capitalization;

  • Repair and maintenance contract cost;

  • Cost of supplies and minor equipment not subject to capitalization;

  • Other costs unique to the clinical laboratory; and

  • Cost of purchased laboratory technical services for fee-for-service patients.

Do not Include:

  • Cost of purchased laboratory technical services for capitation patients. Such cost should be reported as “Purchased services for capitation patients.”
     

Radiology and imaging [7300-7340]11

Cost of diagnostic radiology and imaging procedures defined by diagnostic radiology CPT codes 70010-76499, diagnostic ultrasound CPT codes 76506-76999, diagnostic nuclear medicine CPT codes 78012-78999, echocardiography CPT codes 93303-93355, noninvasive vascular diagnostic studies CPT codes 93880-93998, and electrocardiography CPT codes 93000-93042.
Include:

  • Rental and/or depreciation cost of major furniture and equipment subject to capitalization;

  • Repair and maintenance contract cost;

  • Cost of radiological diagnostics (isotopes);

  • Cost of supplies and minor equipment not subject to capitalization. This amount is the net after subtracting the revenue from silver recovery from X-ray film and processing fixer;

  • Other costs unique to the radiology and imaging department; and

  • Cost of purchased radiology technical services for fee-for-service patients.

Do not Include:

  • Cost of purchased radiology technical services for capitation patients. Such cost should be reported as “Purchased services for capitation patients”; or

  • Cost of procedures for radiation oncology CPT codes 77261-77799 or therapeutic nuclear medicine CPT codes 79005-79999. Such costs are included in “Other ancillary services” in this section.
     

Other ancillary services [7500-7640]11

Operating costs for all ancillary services departments except clinical laboratory and radiology and imaging.
Include:

  • Operating costs for departments such as physical therapy, optical, ambulatory surgery, radiation oncology, therapeutic nuclear medicine, etc.;

  • Rental and/or depreciation cost of major furniture and equipment subject to capitalization;

  • Repair and maintenance cost;

  • Cost of supplies and minor equipment not subject to capitalization;

  • Other costs unique to the ancillary services departments; and

  • Cost of purchased “other ancillary” technical services for fee-for-service patients.

Do not Include:

  • Cost of purchased “other ancillary” technical services for capitation patients. Such cost should be reported as “Purchased services for capitation patients”;

  • Cost of physical therapy and orthopedic items, such as crutches and braces, sold to patients. Such cost is included in “Cost of sales and/or cost of other medical activities”; or

  • Cost of optical items, such as eyeglasses and contact lenses, sold to patients. Such cost is included in “Cost of sales and/or cost of other medical activities.”
     

Billing and collections purchased services [6354-6355, 6357, 6930]11

When a medical practice decides to purchase billing and collections services from an outside organization as opposed to hiring and developing its own employed staff to conduct billing and collections activities, the cost for such purchased services should be considered “Billing and collections purchased services.”
Include:

  • Claims clearinghouse cost.
     

Management fees paid to an MSO or PPMC [6360, 6362]11

Medical practices may receive management or other services from an MSO, PPMC, hospital or other parent organization in return for a fee. The fee could be a contracted fixed amount, a percentage of collections or any other mutually agreed upon arrangement. Whatever the methodology, report the amount here.
Include:

  • Fees paid to an MSO/PPMC, hospital or parent organization for management services including management, administrative, and/or related support services; and

  • The cost of support staff employed by the MSO/PPMC, if these costs were not reported separately in the Staff section. The decision of whether to report these support staff costs in the “Staff” section, or in the “Management fees paid to an MSO or PPMC” depends on the quality of the FTE data. If FTE data for the MSO/PPMC support staff is accurate and easily obtainable, it is preferable to report the MSO/PPMC support staff FTE and cost in the “Staff” section. If the FTE counts are not known, it is suggested that the support staff cost be treated as a purchased service and be reported in “Management fees paid to an MSO or PPMC.”

Do not Include:

  • The cost of support staff employed by the MSO/PPMC, if these costs were reported in the "Staff” section.
     

Miscellaneous operating cost [7740]11

Operating cost not stated above.
Do not Include:

  • Federal or state income taxes, which are included in “Nonmedical cost;” or

  • Principal paid on loans, which is not reported anywhere in this survey.
     

Cost allocated to medical practice from parent organization

When a medical practice is owned by a hospital, integrated delivery system, or other entity, the parent organization often allocates indirect costs to the medical practice. These indirect costs may have different names depending on the situation. Examples of alternative names are “shared services costs” or “uncontrollable costs.” These costs may be arbitrarily assigned to the medical practice, may be the result of negotiations between the practice and the parent organization, or the result of some sort of cost accounting system. Often, these indirect costs include a portion of the salaries of the senior management team of the parent organization, a portion of corporate human resources costs, or a portion of corporate marketing costs.

Depending on the type of cost, the cost may be allocated to the medical practice as a function of the ratio of medical practice FTE to total system FTE, the ratio of medical practice square footage to total system square footage, or the ratio of medical practice gross charges to total system gross charges. Depending on the culture of the integrated system, these indirect costs may or may not even show up on the financial statements of the medical practice.
Regardless of the cost’s name, the reporting culture or the cost allocation method, please try to identify these costs and report them.
Do not Include:

  • Cash loans made to subsidiaries. Cash for loans does not appear anywhere on this survey.
     

*Total general operating cost

Add “Information technology” through “Cost allocated to medical practice from parent organization.”
 

*Total operating cost

Add “Total support staff cost” and “Total general operating cost.”

X

Shopping Cart

Your cart is empty

Subtotal:
Click here if your organization is tax exempt
X

A State Sales tax exempt certificate must be on file and taxable items cannot be ordered online. For immediate assistance during normal business hours of 7:00am to 5:00pm MT M-Th and 7:00 am to Noon MT on Friday, please call toll-free: 877-275-6462, ext. 1888

X

Checkout

Use two letter code for US states
Use three letter code for country
Use two letter code for US states
Use three letter code for country

Grand Total:
Use two letter code for US states
Use three letter code for country
Saved credit card is required for opt-in to autorenew.

Questions? Contact the MGMA Service Center for assistance during checkout or review our return policy for more information.
X

Confirmation

,
,

Total:
Payment:
Balance:
 

Thank you for your purchase! If you purchased an event, you will be receiving a follow-up email from our Learning Management System regarding the product/event purchased and no further action is required.


Loading...