Ob/gyn, multispecialty practices see rise in operating costs
Medical group practices saw higher operating costs than revenue in 2006.
Medical group practices saw higher operating costs than revenue in 2006, according to the Medical Group Management Association's Cost Survey: 2007 Reports Based on 2006 Data. In ob/gyn practices, operating costs rose 7.1% per full-time equivalent physician, while the median total revenue increased just 2.3%. Similarly, multispecialty practices saw a 7.4% increase in costs and a 1.8% increase in revenue.
"This year's data show that the disturbing trend of operating costs rising faster than revenues continues unabated," William Jessee, MD, FACMPE, President and CEO of MGMA, told Medical Liability Monitor (11/2007). "This disparity between practices' costs and revenues is fast approaching the breaking point."
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