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MGMA Cost Survey:
2014 Report Based on 2013 Data
Key Findings Summary Report
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MGMA Cost Survey:
2014 Report Based on 2013 Data
Each year, MGMA surveys its members and nonmembers
to obtain the most recent cost and revenue data. This
year’s survey remains the industry leader for benchmarking
data, representing
2,518 groups.
The Data Solutions staff reached the following results and
conclusions by historical and current-year trend analyses.
These analyses provide insight on factors that influence
cost and revenue measures. The median is used in the
analysis, and the report reflects data submitted for the
2013 fiscal year.
Key Findings
Primary Care practices have
2,505 patients per FTE physician
and spend $265.21 per patient in
total cost.
Nonsurgical practices have 1,507
patients per FTE physician and
earn $349.14 per patient in total
medical revenue.
Factors Influencing Cost and Revenue
Practice Ownership Plays a Role in Practice Size
Physician-owned practices have more total support staff per FTE physician than hospital/IDS-owned practices,
regardless of practice type. The largest variance occurs in Nonsurgical single-specialty practices with 1.93 more
support staff per FTE physician in physician-owned practices. The lowest variance occurs in Surgical singlespecialty practices with just 1.17 more total support staff per FTE physician in physician-owned practices.
Total Support Staff per FTE Physician by Practice Type
Primary Care
Single-Specialty Practices
4 .94
Nonsurgical
Single-Specialty Practices
4 .43
Surgical
Single-Specialty Practices
3.72
Physician Owned
2.50
2.55
5. 52
Multispecialty Practices
3.50
3.68
Hospital/IDS Owned
MGMA Cost Survey: 2014 Report Based on 2013 Data —
Key Findings Summary Report
©MGMA. All rights reserved.
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Personnel Costs are the Bulk of Total Costs
Total physician, total nonphysician provider, and total support staff costs alone represent over 85% of the total
practice costs in Multispecialty practices (45.90%, 4.18%, and 37.16%, respectively). Building and occupancy
and medical and surgical supply costs represent just under 7% of total costs, and ancillary services costs is just
1.26% of total costs.
Cost Categories as a Percentage of Total Cost
for Multispecialty Practices
Per FTE Physician
Total Physician Cost: 45.90%
Other General Operating Cost: 4.61%
Total Nonphysician Provider Cost: 4.18%
Medical and Surgical Supply Cost: 3.31%
Building and Occupancy Cost: 3.57%
Ancillary Services
Cost: 1.26%
Total Support Staff: 37.16%
Key Findings
Multispecialty practices collect 56.64% of their accounts receivables
in the first 30 days.
*Mean is used with A/R data.
Primary Care single-specialty practices have a higher adjusted FFS
collection percent than Surgical and Nonsurgical single-specialty
practices (96.56%, 93.58%, and 94.87%, respectively).
Multispecialty, Primary Care only, physician-owned practices have
$3,427 per FTE physician in net income.
MGMA Cost Survey: 2014 Report Based on 2013 Data —
Key Findings Summary Report
©MGMA. All rights reserved.
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Payer Mix Varies Little across Multispecialty Practices
Payer mix for Multispecialty practices, regardless of whether they are physician-owned or hospital/IDS-owned,
have similar makeups. In physician-owned practices, commercial payers compose 53.80% of charges, while
government payers make up only 42.91% of charges.
In hospital/IDS-owned Multispecialty practices, commercial payers compose 48.82% of charges, while
government payers make up nearly the same with 46.64% of charges.
Physician Owned
Payer Mix Gross
Charges, All
Multispecialty Practices
53.80%
1.29%
*Mean is used with Payer Mix data.
3.04%
6.31%
0.25%
4.19%
31.12%
Commercial
Workers’ Compensation
Charity Care and Prof Courtesy
Self-Pay
Other Government Payers
Medicare
Medicaid
Hospital/IDS Owned
48.82%
3.94%
11.28%
31.90%
0.61%
0.60%
2.85%
MGMA Cost Survey: 2014 Report Based on 2013 Data —
Key Findings Summary Report
©MGMA. All rights reserved.
4
Geographic Section Plays a Role in Total Medical Revenue after
Operating Cost
Both practice type and geographic section play a role in total medical revenue after operating cost. Primary
Care and Surgical single-specialty practices in the midwest earn almost four times more than their
counterparts in the southern section. Surgical single-specialty practices earn more in each of the
geographic sections than Primary Care and Nonsurgical single-specialty practices. Total medical revenue
after operating cost doesn’t account for physician compensation costs.
Total Medical Revenue After Operating Cost per FTE Physician
by Geographic Section
$449,023
Midwest
$407,648
Western
$387,549
$215,608
Eastern
$199,095
$229,842
$201,738
$164,839
$81,877
$54,210
$168,474
$88,672
Southern
Primary Care Single-Specialty Practices
Nonsurgical Single-Specialty Practices
Surgical Single-Specialty Practices
MGMA Cost Survey: 2014 Report Based on 2013 Data —
Key Findings Summary Report
©MGMA. All rights reserved.
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Total Operating Cost as a Percentage of Total Medical Revenue Trends
Vary across Specialties
Total operating cost as a percentage of total medical revenue has remained fairly stable for Orthopedic
Surgery through the last five years. Cardiology, Family Medicine, and Pediatrics report a decrease in total
operating cost as a percentage of total medical revenue from 2012 to 2013 (2.10%, 5.56%, and 2.62%,
respectively), while OB/GYN reports an increase of 8.09% between 2012 and 2013.
Total Operating
Cost as a
Percentage of
Total Medical
Revenue
Per FTE Physician
85%
OB/GYN
80%
75%
Family Medicine
70%
65%
Pediatrics
Cardiology
60%
55%
Orthopedic Surgery
50%
45%
0%
2009
2010
2011
2012
2013
PCMH Practices Earn More in Total Medical Revenue after Operating
Cost than Non-PCMH Practices
Patient centered medical home (PCMH) practices spend $42.56 more per patient in total general
operating costs than non-PCMH practices, but earn $65.54 more per patient in total medical revenue
after operating cost.
All Primary Care Practices,
Total General Operating Cost
and Total Medical Revenue
After Operating Cost
$143.97
$126.54
$83.98
$78.43
Per Patient
PCMH Practices
Non-PCMH Practices
Total General
Operating Cost
Total Medical Revenue
After Operating Cost
©MGMA. All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in
any form or by any other means — digital, electronic, mechanical, photocopying, recording or otherwise — or conveyed via
the Internet or a Web site without prior written permission from the Medical Group Management Association.
MGMA Cost Survey: 2014 Report Based on 2013 Data —
Key Findings Summary Report
©MGMA. All rights reserved.
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