How profitable are physician practices?
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:
1. Thirty-six percent of physicians reported profitability trending down while 22 percent said profitability at their practice was trending up.
2. 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.
3. 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.
4. 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.
6. 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.
7. Texas — where 71 percent — and Massachusetts — where 66 percent — of physicians not interested in selling had the most committed physicians to independence.
8. Private practices are looking to optimize profitability in many ways:
• 50 percent: Streamlining billing process
• 31 percent: Improving technology
• 31 percent: Optimizing staff
9. Nearly half — 48 percent — of physicians turn to their peers for guidance to improve profitability.
10. Changes private practices consider for improving profitability include: 41 percent are implementing EHR; 25 percent are replacing EHR; and 18 percent are outsourcing billing.