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MGMA profiles OB/GYN, anesthesia, and pediatric practice costs

Physician Practice Advisor, May 23, 2007

The Medical Group Management Association (MGMA) has released specialty-specific cost survey reports for anesthesia, OB/GYN, and pediatric practices that highlight economic challenges and successes for these specialties.

Highlights of the reports include the following:

• Anesthesia practices were high producers with median gross charges of $1,474,695 per full-time-equivalent (FTE) physician. However, anesthesia practices had extremely high payer-mandated contractual adjustments, and they collected only $0.44 cents for each dollar charged.
• OB/GYN practices posted a slight, 1% increase in total medical revenue after operating cost in 2005. Although 77% of OB/GYN practices offer ancillary services, the report found that practices offering ancillaries had lower net income ($329,060 per FTE physician) than those practices that did not offer ancillaries ($375,853 per FTE physician).
• Net operating income for all pediatric practices increased 3.9% in 2005 while total general operating cost also increased at 3.1% to $168,428 per FTE physician. Pediatric practices, like many other primary care providers, typically have very high overhead costs--operating cost consumed 61% of pediatric practices' revenues in 2005.

Click here for more information about the MGMA surveys.

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