Practice Management News - October 2009

PRACTICE MANAGEMENT NEWS 

Revenues Decreasing According to MGMA

The Medical Group Management Association has compiled data on revenue for 2008. For the first time in several years, there was a decrease in generated revenue.

Multispecialty groups decreased 1.9%. In this economic environment, this may be contributed to patient volume and bad patient debt. The survey showed a 9.9% decrease in procedures performed as well as an 11.3% decrease in patient volume. Fees for service practices are showing an increase of 13% in uncollected patient balances.

A decrease in revenue can also be attributed to increased operating costs. Statistics show that over the past 10 years, there has been a 54% increase in costs. While costs have grown, revenue has grown by only 46%-less than the change in costs.

Practices have cut ancillary staff and overhead expenses to alleviate declining revenue. It is not just about cutting staff and decreasing expenses; overall practice issues remain. Review your A/R and know what your collection ratio is to anticipate cash flow. 

H1N1 Immunizations

AMA creates a new CPT code for H1N1 immunization to include the H1N1 vaccine. The expectation is that 200 million doses of the H1N1 vaccine will be administered. The revisions to the CPT code will assist providers to streamline reimbursements.

90470 - H1N1 immunization administration (intramuscular, intranasal) including counseling when performed.

90663 - Influenza virus vaccine, pandemic formulation, H1N1

North Shore University Hospital and All Scripts team up to recruit NSUH 7,000 physicians who will have privileges within the 13 hospitals that make the NS system

NSUH is investing $400 million to this project. Each physician will be subsidized up to 85% of the costs to purchase and implement All Scripts in these practices. Besides the stimulus package through the Obama administration, physicians will be enticed with an additional $40k over 5 years.

According to NSUH, the goal of this project is to strengthen the quality of care throughout the NS system and within the hospitals themselves.

There are pros and cons with the overall concept. You must consider all options and how signing this deal can impact your practice's future. 

The Grassi Healthcare Team helps physicians, medical practices, healthcare institutions, nursing homes, and other healthcare businesses reach a higher level of success. For more information on Grassi Healthcare, go to www.grassicpas.com/healthcare.