According to MGMA’s Cost and Revenue data, nearly all health systems lose money on their physician practices while nearly all physician-owned practices breakeven or make a profit. Why do financial outcomes vary by owner/operator and what are implications for health systems of incurring such losses?
In this podcast, Smith discusses the multiple reasons why health systems lose money on their practices. He also talks about why ongoing practice losses can pose financial and regulatory for risks and can impede long-term efforts to improve costs and move from volume to value.
But he warns healthcare leaders, "Stop looking for a simple answer or a one-size-fits-all answer" because they do not exist. The reasons for physician practices losses are multiple and complex.
You can hear Smith speak at MGMA19 | The Financial Conference. The conference is March 3-5, 2019 at Caesars Palace Las Vegas Hotel & Casino. You can learn more about the event or register at www.mgma.com/events/the-financial-conference and www.mgma.com/events/the-financi…rence/registration.
Smith is also the author of an ongoing series of articles on MGMA.com
You can read them at the following links:
www.mgma.com/resources/financia…nk-as-a-red-flag-f
www.mgma.com/resources/revenue-…hysician-owned-pra
www.mgma.com/resources/financia…tale-of-two-owners
www.mgma.com/resources/financia…s-from-operating-e
Also, don’t forget to check out our other series, MGMA Industry Insights, where we focus on a single theme or challenge facing medical practices and the healthcare industry today. The Insights podcast publishes the second and fourth Wednesday of each month.
If you like the show, please rate and review it wherever you get your podcasts. Every positive review helps new listeners find the show. If you have any questions, concerns, or ideas, please shoot us an email at podcasts@mgma.com. MGMA Insights is presented by Craig Wiberg, Decklan McGee, and Daniel Williams.
