Physician practice costs keep climbing

Becker's Healthcare December 6, 2024
Patsy Newitt

Physician practice costs have steadily climbed throughout 2024 and show no signs of slowing as the new year approaches.

Data from Strata Decision Technology, which analyzed information from 10,000 physician practices, highlights key trends in the growing financial pressures physicians face.

Here are five things to know:

1. The investment required to support a physician practice rose 8.8% year-over-year in October, reaching $332,887 per full-time equivalent physician.

2. Median direct expenses per physician increased 9.8% year-over-year, hitting $1.1 million annually. Meanwhile, median net revenue per physician rose by 9.1% to $726,691.

3. Physician productivity grew by 8.3%, with work relative value units per FTE physician reaching 6,311.97 in October. However,...

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