According to a survey released by the American Medical Group Association (AMGA) on Dec. 22, in 2019 independent medical groups generated a profit, while health system-affiliated medical groups suffered a loss.
The press release the AMGA published states: “AMGA’S newly released 2020 Medical Group Operations and Finance survey reveals that although most groups saw improved financial performance in 2019, independent medical groups generated a profit, while health system-affiliated groups faced a loss. The survey shows the overall median profit by investment (P/I) per provider in 2019 to be -$22,028, an improvement from -$57,426 in 2018. For health system-affiliated medical groups, the overall median loss per provider (also known as “investment per provider”) in 2019 was –$163,994 in 2019, slightly better than -$165,050 seen in 2018. For independent medical groups, the profit per provider increased to $12,434 in 2019 from $5,200 in 2018.”
In addition, the AMGA noted that that compensation and benefits increased 56% in 2018 for providers, and “creates a greater need for practices to be performing at optimal levels, given that the remaining percentage for staff salaries and benefits and operational expenses is shrinking.” While “the numbers alone are not necessarily indicative of system-affiliated groups performing worse than independent groups,” this is good news for providers who often struggle with the decision to join larger groups.
Since its founding in 1997, Microwize’s goal has been “helping practices stay independent.” Financial concerns often lead to practices being absorbed by these larger systems and losing control of day-to-day operations. Let Microwize work with you to help keep your practice lucrative, healthy, and yours!