Better Performing Practices Spend More

Better performing medical practices spend almost 9% more on their operations than their peers according to a new report released by the Medical Group Management Association (MGMA). These same practices enjoyed higher revenues and physician compensation compared to the average.

According to the report, better performing practices spent, on average, $884,979 per full-time-equivalent (FTE) physician while their peers only spent $814,342. Yet despite having higher operational costs, these same practices generated almost 18% more revenue and had physician compensation that was 19% more than the average. These findings demonstrate that investing smartly in people, technology, and improved processes pay off (literally!).