February 12, 2016 | Becker’s ASC Review
Written by Laura Dyrda.
A CareCloud and QuantiaMD infographic examines physician practice profitability. There were 5,012 physicians contributing responses to the data in 2015. Here are 10 key points:
How profitable are physician practices?
- Thirty-six percent of physicians reported profitability trending down while 22 percent said profitability at their practice was trending up.
- More than half — 65 percent — of physicians pin pointed declining reimbursement as affecting practice profitability; 57 percent said rising costs were a culprit and 48 percent pointed the finger at the Affordable Care Act.
- Physicians in California were most concerned about whether they could handle the new influx of patients from the ACA; Massachusetts physicians were the most optimistic. Overall 48 percent said they didn’t have the resources to accept new patients that would be insured through the ACA.
- Eleven percent of the physicians who were in private practice said they were actively looking to sell, but 60 percent said they were not looking for a buyer at all.
- Physicians in Florida, New York and Illinois were least committed to independence — only 51 percent to 55 percent of the physicians reported no interest in selling.
- Texas — where 71 percent — and Massachusetts — where 66 percent — of physicians not interested in selling had the most committed physicians to independence.
- Private practices are looking to optimize profitability in many ways:
50 percent: Streamlining billing process
31 percent: Improving technology
31 percent: Optimizing staff - Nearly half — 48 percent — of physicians turn to their peers for guidance to improve profitability.
- Changes private practices consider for improving profitability include: 41 percent are implementing EHR; 25 percent are replacing EHR; and 18 percent are outsourcing billing.