Physicians hit by higher operating losses in Group Practices


2010 has registered an increase in physician’s compensation across specialties even as most of the medical groups have been operating at significant financial losses; in fact, the specialties have registered a compensation increase of 2.6% for Primary Care, 3.8% for surgical specialty, and 2.4% for other medical specialties.

According to AGMA survey conducted amongst 49,700 US healthcare providers, the group practices in the northern region have topped the list by averaging a loss of $10,669, followed by those in the southern region with an average loss of $1,870 and eastern region with an average loss of $1,597. Western regions neared the breakeven point of last year i.e. $27.

In the current economic climate, these medical groups continue to face the challenge of delivering the highest quality, coordinated care to the patients they serve, due to these high operating losses. According to this survey a major reason for the negative operating margin is due to the increased integration of medical groups and health systems where funding from each physician goes to their medical group corpus. Another reason that contributes to operating losses is the difficulty involved in retrieving expenses incurred due to enhancing patient care in the context of volume based reimbursement system in the US.

Hence, it is advisable for these group practices to look for experts who can provide relevant consultancy services to identifying the lacunas and streamline the overall functioning of their group practices by decreasing the administrative cost while increasing operating revenue. has expertise in providing consultancy services for group practices to enhance their revenue in the time of flat reimbursement from both government and private payers along with other administrative challenges. Offering the best solutions in strategic, financial, and operational consultancy, MBC offer professional support and assistance to healthcare providers to keep abreast of the changing industry norms, so that they can concentrate on their core services such as patient care.

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