Medical groups cut spending by 2.2% in 2010, despite the fact that general operating costs have risen by more than 52.6% since 2001, according to the Medical Group Management Association.
MGMA: Medical practices cut spending 2.2% last year
MGMA President and CEO Dr. William Jessee said in a news release from the Englewood, Colo.-based association that the findings speak to a conservative climate.
"This means medical practices are not spending as much money as they were last year, which isn't necessarily a good thing," he said. "There is only so much more practices can do to cut expenditures without inhibiting their ability to run a successful, innovative practice."
The MGMA's Cost Survey for Multispecialty Practices: 2011 Report based on 2010 Data drew information from 44,000 providers and 1,994 groups. Total medical revenue in multispecialty practices not owned by hospitals or integrated delivery systems has risen 45.9% since 2001 and 8.5% since 2009, likely because practice managers are scrutinizing their operating expanses more closely, according to the association. Drug supply costs have plunged 8.5% since 2010, though spending on medical and surgical supplies increased by 7.4% during that time. Also since 2010, expenditures for total support staff have increased by 4.8%.
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