Operating expenses increased at nearly the same rate as revenue between 2015 and 2016, according to a survey released by the Medical Group Management Association.
For the survey, MGMA gathered data and insights from more than 2,900 organizations and 40 specialties and practice types.
Here are four survey insights.
1. Practices with a higher non-physician provider to physician ratio (0.41 or more) earned more in revenue after operating cost, compared to practices with a lower non-physician provider to physician ratio (0.20 or fewer).
2. In the last year, physician-owned practices spent between $2,000 and $4,000 more per full time equivalent physician than one year prior. The increase was less for hospital-owned practices.
3. Drug supply costs have increased more than 10 percent per FTE physician across practices.
4. Primary care practices with a lower percent of government payer mix reported higher operating costs, and even higher revenues after operating costs.
Physician-owned primary care groups, with a government pay mix of 30 percent or less, reported $159,307 more in revenue per physician than those with a mix of 50 percent or more. For hospital-owned practices, that difference is $221,497.
Click here to view the full survey.