Hospital-Owned Physician Groups See Greater Jump in Operating Costs

Physicians in hospital- or health system-owned multispecialty practices saw a larger jump in operating costs last year than providers in physician-owned groups, according to a recent MGMA-ACMPE report.

Multispecialty medical practices owned by hospitals and/or integrated delivery systems reported $387,586 in total operating costs per full-time-equivalent physician last year, an increase of 6.45 percent from 2010.

Although physician-owned multispecialty practices reported higher total operating costs per FTE physician ($528,182), those providers saw a smaller increase of about 1.27 percent compared with 2010.

Also, physician groups are spending more on marketing and promotional efforts. In 2011, medical practices reported spending slightly less on promotions and marketing compared to 2010, but since 2007, those costs increased by 6 percent to a median of $3,601 per FTE physician.

The MGMA report was conducted through voluntary participation from February through April and included data from more than 46,800 providers and 2,100 groups.

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