Operating costs for medical groups in integrated delivery systems have fallen slightly but remain well above stagnant revenue, according to a survey by the Medical Group Management Association. Operating costs per full-time equivalent physician at integrated systems' medical practices increased 4.9% in 2003, much less than the 8.4% increase in 2002. At the same time, medical revenue per FTE physician remained about the same, compared with a 4.5% increase in 2002, the survey found. Physician-owned multi-specialty practices may have fared better. At systems' medical practices, total revenue per FTE physician was $433,780 in 2003, compared with $633,096 per physician in physician-owned practices. Much of the difference may be because integrated delivery systems credit ancillary-service revenue to hospitals, the system as a whole or management-service organizations rather than to medical groups, the MGMA said. -- by Michael Romano
Growth slows in systems' costs per FTE physician
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