MGMA Cost Survey: 2014 Report Based on 2013 Data. Key Findings Summary Report

Size: px

Start display at page:

Download "MGMA Cost Survey: 2014 Report Based on 2013 Data. Key Findings Summary Report"

Edwina Carroll
8 years ago
Views:

1 MGMA Cost Survey: 2014 Report Based on 2013 Data %

2 MGMA Cost Survey: 2014 Report Based on 2013 Data Each year, MGMA surveys its members and nonmembers to obtain the most recent cost and revenue data. This year s survey remains the industry leader for benchmarking data, representing 2,518 groups. The Data Solutions staff reached the following results and conclusions by historical and current-year trend analyses. These analyses provide insight on factors that influence cost and revenue measures. The median is used in the analysis, and the report reflects data submitted for the 2013 fiscal year. Key Findings Primary Care practices have 2,505 patients per FTE physician and spend $ per patient in total cost. Nonsurgical practices have 1,507 patients per FTE physician and earn $ per patient in total medical revenue. Factors Influencing Cost and Revenue Practice Ownership Plays a Role in Practice Size Physician-owned practices have more total support staff per FTE physician than hospital/ids-owned practices, regardless of practice type. The largest variance occurs in Nonsurgical single-specialty practices with 1.93 more support staff per FTE physician in physician-owned practices. The lowest variance occurs in Surgical singlespecialty practices with just 1.17 more total support staff per FTE physician in physician-owned practices. Total Support Staff per FTE Physician by Practice Type Primary Care Single-Specialty Practices Nonsurgical Single-Specialty Practices Surgical Single-Specialty Practices Multispecialty Practices Physician Owned Hospital/IDS Owned 3.68 MGMA. All rights reserved. 2

The Data Solutions staff reached the following results and conclusions by historical and current-year trend analyses.

3 Personnel Costs are the Bulk of Total Costs Total physician, total nonphysician provider, and total support staff costs alone represent over 85% of the total practice costs in Multispecialty practices (45.90%, 4.18%, and 37.16%, respectively). Building and occupancy and medical and surgical supply costs represent just under 7% of total costs, and ancillary services costs is just 1.26% of total costs. Cost Categories as a Percentage of Total Cost for Multispecialty Practices Per FTE Physician Total Physician Cost: 45.90% Other General Operating Cost: 4.61% Total Nonphysician Provider Cost: 4.18% Medical and Surgical Supply Cost: 3.31% Building and Occupancy Cost: 3.57% Ancillary Services Cost: 1.26% Total Support Staff: 37.16% Key Findings Multispecialty practices collect 56.64% of their accounts receivables in the first 30 days. *Mean is used with A/R data. Primary Care single-specialty practices have a higher adjusted FFS collection percent than Surgical and Nonsurgical single-specialty practices (96.56%, 93.58%, and 94.87%, respectively). Multispecialty, Primary Care only, physician-owned practices have $3,427 per FTE physician in net income. MGMA. All rights reserved. 3

26% of total costs. Cost Categories as a Percentage of Total Cost for Multispecialty Practices Per FTE Physician Total Physician Cost: 45.90% Other General Operating Cost: 4.

4 Payer Mix Varies Little across Multispecialty Practices Payer mix for Multispecialty practices, regardless of whether they are physician-owned or hospital/ids-owned, have similar makeups. In physician-owned practices, commercial payers compose 53.80% of charges, while government payers make up only 42.91% of charges. In hospital/ids-owned Multispecialty practices, commercial payers compose 48.82% of charges, while government payers make up nearly the same with 46.64% of charges. Physician Owned Payer Mix Gross Charges, All Multispecialty Practices 53.80% *Mean is used with Payer Mix data. 6.31% 3.04% 4.19% 1.29% 0.25% 31.12% Commercial Workers Compensation Charity Care and Prof Courtesy Self-Pay Other Government Payers Medicare Medicaid Hospital/IDS Owned 48.82% 11.28% 3.94% 0.61% 0.60% 31.90% 2.85% MGMA. All rights reserved. 4

In hospital/ids-owned Multispecialty practices, commercial payers compose 48.82% of charges, while government payers make up nearly the same with 46.64% of charges.

5 Geographic Section Plays a Role in Total Medical Revenue after Operating Cost Both practice type and geographic section play a role in total medical revenue after operating cost. Primary Care and Surgical single-specialty practices in the midwest earn almost four times more than their counterparts in the southern section. Surgical single-specialty practices earn more in each of the geographic sections than Primary Care and Nonsurgical single-specialty practices. Total medical revenue after operating cost doesn t account for physician compensation costs. Total Medical Revenue After Operating Cost per FTE Physician by Geographic Section $449,023 $407,648 Western $201,738 $81,877 Midwest $199,095 $215,608 $387,549 Eastern $229,842 $164,839 $168,474 $54,210 $88,672 Southern Primary Care Single-Specialty Practices Nonsurgical Single-Specialty Practices Surgical Single-Specialty Practices MGMA. All rights reserved. 5

Surgical single-specialty practices earn more in each of the geographic sections than Primary Care and Nonsurgical single-specialty practices.

6 Total Operating Cost as a Percentage of Total Medical Revenue Trends Vary across Specialties Total operating cost as a percentage of total medical revenue has remained fairly stable for Orthopedic Surgery through the last five years. Cardiology, Family Medicine, and Pediatrics report a decrease in total operating cost as a percentage of total medical revenue from 2012 to 2013 (2.10%, 5.56%, and 2.62%, respectively), while OB/GYN reports an increase of 8.09% between 2012 and Total Operating Cost as a Percentage of Total Medical Revenue Per FTE Physician 85% 80% 75% 70% 65% 60% 55% 50% 45% OB/GYN Family Medicine Pediatrics Cardiology Orthopedic Surgery 0% PCMH Practices Earn More in Total Medical Revenue after Operating Cost than Non-PCMH Practices Patient centered medical home (PCMH) practices spend $42.56 more per patient in total general operating costs than non-pcmh practices, but earn $65.54 more per patient in total medical revenue after operating cost. All Primary Care Practices, Total General Operating Cost and Total Medical Revenue After Operating Cost Per Patient $ $83.98 $ $78.43 PCMH Practices Non-PCMH Practices Total General Operating Cost Total Medical Revenue After Operating Cost MGMA. All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any other means digital, electronic, mechanical, photocopying, recording or otherwise or conveyed via the Internet or a Web site without prior written permission from the Medical Group Management Association. MGMA. All rights reserved. 6

56%, and 2.62%, respectively), while OB/GYN reports an increase of 8.09% between 2012 and 2013.

MGMA Academic Practice Compensation and Production Survey for Faculty and Management: 2014 Report Based on 2013 Data. Key Findings Summary Report

MGMA Academic Practice Compensation and Production Survey for Faculty and Management: 2014 Report Based on 2013 Data % Key Findings Summary Report MGMA Academic Practice Compensation and Production Survey