Data from Strata Decision Technology, which analyzed information from 10,000 physician practices, highlights key trends in the growing financial pressures physicians face.
Here are five things to know:
1. The investment required to support a physician practice rose 8.8% year-over-year in October, reaching $332,887 per full-time equivalent physician.
2. Median direct expenses per physician increased 9.8% year-over-year, hitting $1.1 million annually. Meanwhile, median net revenue per physician rose by 9.1% to $726,691.
3. Physician productivity grew by 8.3%, with work relative value units per FTE physician reaching 6,311.97 in October. However, median support staff per FTE physician declined 5.8%, averaging 2.85 staff per 10,000 wRVUs.
4. Over the past two years, the investment per physician has surged by 17%.
5. “Many physicians face the challenge of effectively managing their practice’s financial aspects,” David Rosenfield, MD, anesthesiologist and interventional pain specialist at Peachtree City, Ga.-based Alliance Spine & Pain, told Becker’s. “This includes dealing with insurance reimbursements, understanding complex billing codes, and controlling operational costs. Every year many of us find ourselves working harder and longer hours just to maintain our incomes. The costs of practicing medicine (rent, equipment, employee costs) continue to rise, while reimbursement often declines year over year.”
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