Survey: Medical practice managers struggling with operating costs
Medical practice managers cite “dealing with rising operating costs” as their biggest daily challenge in 2010, according to a new Medical Group Management Association survey.
For a third year, medical practice professionals sounded off about their biggest daily challenges, as well as their struggles to safeguard their practices' financial solvency despite a failing economy, in the MGMA’s 2010 “Medical Practice Today: What Members Have to Say” survey.
According to the research, the top three challenges of running a group practice are:
- Dealing with rising operating costs;
- Managing finances with the uncertainty of Medicare reimbursement rates; and
- Selecting and implementing a new electronic health record system
“It is not surprising that 'maintaining finances with the uncertainty of Medicare reimbursement rates' jumped to the No. 2 spot this year due to the continued Congressional irresponsibility in not permanently addressing the flawed sustainable growth rate (SGR) formula,” said William F. Jessee, MD, president and CEO of the MGMA.
Medicare reimbursement rate uncertainty had ranked fifth in both 2008 and 2009.
An organizational governance issue MGMA introduced to the list this year, “managing teamwork and group dynamics among physicians,” debuted at No. 8. “Implementing a patient-centered medical home model of care” made the biggest leap from last year’s list (from No. 22 to No. 12).
“Practices are clearly balancing the very serious issue of keeping their practices afloat amid unprecedented financial uncertainty with the more delicate practice management issues such as managing group dynamics and overseeing their organizations’ strategic direction,” Jessee said. “It’s a testament to the profession of medical practice management that they must find a way to survive and move forward despite the dynamic and challenging environment in which they practice.”
The MGMA found that when compared with independent medical practices, hospitals and health system respondents were more likely to find “challenging” these issues:
- Modifying physician compensation methodology;
- Recruiting physicians • Dealing with rising operating costs; and
- Implementing a patient-centered medical home model of care
However, hospitals and health system respondents were less likely than independent medical practices to be challenged by “maintaining physician compensation levels” and “negotiating contracts with payers.”
For a second year, the MGMA also asked study participants how the recession is affecting their medical groups and how they are responding. Respondents indicated that improved billing collections and/or denial management process was at the top of the list.
