Surviving or Thriving - Tips from Better Performing Practices
Dr. William F. Jessee, MD, FACMPE
President and CEO
Medical Group Management Association (MGMA)

NOTE: Dr. Jessee will be the Keynote Speaker at the 2004 NCMGM Fall Conference.  Dr. Jessee's presentation will be at 8:00am on Thursday, September 23rd.

Medical practices today face an extremely difficult business environment. Since 1998, reimbursement rates per CPT code have remained relatively flat (or declined), while practice operating expenses have risen steadily at a rate of about 6.5% per year. The steady increase in the cost of labor, supplies and drugs has been outstripped only by the explosive increases in insurance costs---especially for professional liability coverage.

Challenged further by rising patient expectations, the surge of interest in healthcare information technology and growing complexity in the administration of healthcare payment systems, many practice managers are finding it increasingly difficult to keep their heads above water. Yet some practices are not just surviving---they are actually thriving, despite the difficult environment.

Each year, MGMA identifies, through its cost survey, practices that are above the median in profitability and below the median in operating cost. These “better performers” are then further surveyed and evaluated to learn more about their operations, and how they are achieving their financial success.

Among the most important characteristics of better performing practices are:

• Outstanding management of accounts receivable
• Stable, understandable physician compensation arrangements, tied to productivity
• Strong governance, and physician support for their leaders
• High employee morale and low staff turnover
• A strong commitment to physician – administrator teamwork
• Excellent results in physician recruitment and retention
• Significant investments in information management technology

Better performers have been able to increase their revenues by finding new revenue opportunities, improving cash collections and increasing physician productivity. At the same time, they have controlled costs by improving billing accuracy, better matching employee skills to job requirements and increasing overall practice operating efficiency.

Join me at the NCMGM Fall Conference in Greensboro, September 22-25, to learn more “tricks of the trade” from practices that are thriving!
 

Thank you to our 2004 Alliance Sponsors.  Click on the sponsors' name to visit their web site:

Platinum Level
Medical Mutual

Silver Level
RSM McGladrey

Bronze Level
Applied Medical Systems
Archivus
C&S Research Corporation
Digital Sales and Service
Dixon Hughes, PLLC
Gotham Images Inc.
Grant & Grant, LLC
Heathcare Enterprises
MAG Mutual Insurance
Marshall Erdman & Associates