Vice President, Public Relations
703.838.0033 ext. 393
January 8, 2017
AMGA 2017 Medical Group Operations and Finance Survey Indicates that
Healthcare Organizations Face Increased Cost Pressures amid Revenue Growth
Alexandria, VA – AMGA today announced
findings from the 2017 Medical Group Operations and Finance Survey, conducted by
their consulting division, AMGA
Consulting. Overall results showed a continuing increase in cost pressures
and inability to grow revenues, leading to diminished operating results.
The operating loss per physician increased from a loss of 10% of net revenue
found in the 2016 survey to a loss of 17.5% of net revenue in the 2017 survey.
Total losses per physician during this two-year period went from $95,138 to
$140,856 per physician at the median. During this period, while gross
professional revenue increased from $1,217,350 to $1,328,625 at median, net
professional revenue actually decreased at median from $682,735 to $681,322.
The survey results, delineated in a variety of ways in the report, also
highlighted performance by group size and type. Interestingly, while private
physician practices saw an increase in operating margin of $16,378 per physician
(from a loss of $13,982 reported in 2016 to a profit of $2,396), integrated
health systems saw an increase in the reported median operating loss per
physician of $31,957 between 2016 and 2017 survey results (the 2017 operating
loss increased approximately 15%, up to $243,918, compared to the 2016 reported
median loss of $211,961).
The majority of integrated groups are small to mid-size (13 of the 15
reported) and, as expected, these group sizes also reported increasing operating
losses per physician. Large groups, with more than 300 physicians, saw a
decrease of operating loss, from 2016’s loss of $172,746 per physician to a loss
of $35,477 per physician in 2017.
“The results of this survey suggest that groups must be diligent in managing
their operational imperatives of their organizations,” said Fred Horton, M.H.A.,
president, AMGA Consulting. “Without real focus on operational costs and
processes, there is a significant inability to grow revenues in a manner that
will outpace practice inflation.”
“We believe that this survey and our educational offerings around best
practices are valuable tools to help groups survive amid the increasingly
challenging financial landscape,” said Jerry Penso, M.D., M.B.A., president and
chief executive officer, AMGA. “We will continue to monitor these trends in
order to ensure we are doing all we can to help our members succeed in the
About the Survey
The AMGA 2017 Medical Group Operations and Finance Survey includes financial
summaries based on size, region, percentage of capitated net revenue; median
data on direct expenses, provider compensation, and staffing; and accounts
receivable information. It presents data from 49 organizations, representing
more than 13,000 physicians.
About AMGA Consulting
AMGA Consulting assists healthcare organizations navigate the changing industry
environment. AMGA Consulting builds clients’ organizational capabilities through
effective governance, operational improvement, strategic alignment, talent
management, and total rewards solutions.
AMGA is a trade association leading the transformation of health care in
America. Representing multispecialty medical groups and integrated systems of
care, we advocate, educate, innovate, and empower our members to deliver the
next level of high performance health. AMGA is the national voice promoting
awareness of medical groups’ recognized excellence in the delivery of
coordinated, high-quality, cost-effective care. More than 175,000 physicians
practice in our member organizations, delivering care to one in three Americans.
For more information, visit amga.org