business
Big practices losing more than $2,000 per physician
■ Medical groups in the West are doing the best economically, with those in the North seeing $11,000 deficits per doctor.
By Victoria Stagg Elliott — Posted Sept. 7, 2011
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Large practices lost an average of $2,023 per physician, according to an annual report issued Aug. 16 by the American Medical Group Assn.
"Reimbursements are not covering the cost of providing care and running a health system," said Tom Flatt, AMGA's director of communications and publications. The association put out the 2011 Medical Group Compensation and Financial Survey based on 2010 data.
Financial health varied by region. Practices in the West were the most economically healthy, with an average loss of $27 per physician. They broke even in 2009 and lost $1,458 per physician in 2008, when the recession was in full swing.
Large practices in the East lost an average of $1,597 per physician. They broke even in 2008 and 2009. Medical groups in the South averaged a loss of $1,870 per physician in 2010, up from $1,034 in 2009 and $120 in 2008.
The North lost the most per physician, at $10,669 in 2010. They lost $9,943 in 2009 and $3,254 in 2008.
"Some regions are really struggling," Flatt said.
The report said losses often were covered by health systems that owned the practices or through other revenue streams.
A total of 239 medical groups representing 51,700 physicians responded to the AMGA survey. More than half of the practices included more than 100 physicians. Forty percent were owned by physicians, and hospitals owned 17%. Health systems held 34%, and 2% were owned by a university medical school.
