MGMA’s Winning Strategies From Top Medial Groups report identifies better-performing practices have invested in: (1) New/upgraded EHRs; (2) Electronic communication systems; and (3) Upgraded coding and revenue cycle management systems.
The Medical Group Management Association (MGMA) released their Winning Strategies From Top Medical Groups report – on the morning of their annual conference. The report is based on data gathered from 3,000+ medical groups that were identified by MGMA as top-performers in at least one of four categories:
- Better-performing practices focus on using resources efficiently and create + stick to a financial plan.
- Better-performing practices are those whose providers and staff successfully contributed to earned revenue for the practice.
- Better-performing practices have lower operating costs as a percentage of revenue and manage their revenue cycle better.
- Better-performing practices report on quality metrics while also excelling in at least one other category.
According to the report, being a better-performer reaps significant benefits.
- Better performing independently-owned surgical specialty practices have 20% lower operating costs vs other practices
- Better performing primary care practices have 8.6% greater net income per physician vs other practices
- Better performing practices collect 10% more accounts receivable in the first 30 days vs other practices
Overall, the report identified three key strategies that better-performing practices pursue:
- Building an engaging, patient-focused culture
- Focusing on long-term, strategic progress
- Constantly investing in improving operations
What was the most surprising result in the report? Todd Evenson, Chief Operating Officer of MGMA had this to say “I found it surprising how much more productive Better Performers were in terms of Work Relative Value Units (RVUs). Better-performing non-surgical specialty practices, for example, were found to have an average of 9,115 RVUs per physician compared to 7,300 for all other practices. The report highlights having the right staff, the right technology and the right people can make a big difference.”
For me, the most interesting aspect of the report was where HealthIT investments were being made. The report identifies that better-performers had or were planning to invest in:
- New or upgraded EHRs to support better patient communication, better provider experience and workflow efficiency
- Electronic communication systems (like secure texting) for use between providers and with patients
- Upgraded billing/coding software and revenue cycle management systems
I did not expect to see communication so prominent in the top Health IT priorities. For many years communication has been an afterthought. It is encouraging to see that in 2018 practice leaders are putting an emphasis on tools and systems to help bring the people who are delivering care closer to peers and closer to patients.
“The reality is, any practice can achieve top performance when the people within it make a sustained effort to do more of the right things well,” said Ken Hertz, Principal MGMA Consultant. “We developed this report not only to give practices strategies to get the most from their business but to show them that these efforts pay off—for practices and patients alike. When practices invest in improving their business, patients are more efficiently served, increasing patient satisfaction and health outcomes, and improving patient retention rates. It’s a feedback loop that benefits everyone.”
The Winning Strategies From Top Medical Groups report is available exclusively to MGMA members.