MGMA: Increased non-physician staffing results in more profitable medical groups

Medical groups could see revenues increase if they up their number of non-physician providers and key support staff, suggests a new Medical Group Management Association survey.

The 2017 MGMA DataDive Cost and Revenue Survey, which includes data of nearly 3,000 organizations and 40 specialties and practice types, revealed practice operating expenses and revenue increased at similar rates between 2015 and 2016. MGMA attributed the practices' increased revenues largely to increased non-physician providers and support staff.

"The practices with a higher non-physician provider to physician ratio (0.41 or more NPPs per full-time equivalent physician) earn more in revenue after operating cost than practices with fewer NPPs (0.20 or fewer NPPs per FTE physician) regardless of specialty," the organization said.

In addition to non-physician providers and support staff, the survey also notes other factors affecting costs for practices, such as IT expenses, payer mix and drug costs. 

For instance, MGMA said they found primary care practices with a lower percent of federal Medicare and Medicaid payer mix saw higher revenue after operating cost per FTE physician in physician-owned and hospital-owned practices.

Access to the full survey is available here.

 

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