The typical 10-doctor medical group spends almost $250,000 a year on wasteful and redundant administrative tasks such as resubmitting denied claims and double-checking patients' insurance coverage, the Medical Group Management Association said. The average 10-doctor group spent about $34,000 annually negotiating insurance contracts with an average of 15 different health plans, nearly $40,000 verifying patient coverage and about $20,000 on phone calls with pharmacies to resolve formulary issues, according to survey results released today at the MGMA's annual conference in San Francisco. The MGMA is lobbying for a simplified payment system with standardized credentialing, clinical guidelines, formulary and payer contract form. Read more about the MGMA's simplified payment concept. -- by Michael Romano
Wasteful tasks raise doctors' administrative costs
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