In response to tough times and an uncertain reimbursement future, medical practices spent 2.2 percent less to run their practices in 2010, reveals a new survey from the Medical Group Management Association (MGMA).

In particular, MGMA's "Cost Survey for Multispecialty Practices: 2011 Report Based on 2010 Data" found the following changes since 2010:

• Practices' spending on furniture and equipment expenses decreased 23.37 percent
• Drug supply costs decreased 8.52 percent
• Spending for total support staff increased 4.78 percent
• Spending on medical and surgical supplies increased 7.43 percent

These shifts occurred in spite of the fact that since 2001, general operating costs have increased by 52.64 percent to $252,629, exceeding revenue gains during that time frame, according to a press release. As a possible result of reining in operating expenses, however, total medical revenue in multispecialty practices not owned by hospitals or integrated delivery systems increased 45.87 percent since 2001 and 8.5 percent since 2009.

"The tenor of these findings speaks to an environment of conservatism," stated MGMA President and CEO Dr. William F. Jessee. "In an effort to reinforce themselves against a draconian proposed cut to Medicare payments, as well as other factors, they have worked to reduce operating expenses and renegotiate rates with vendors, supply companies and insurance carriers. This means medical practices are not spending as much money as they were last year, which isn't necessarily a good thing. There is only so much more practices can do to cut expenditures without inhibiting their ability to run a successful, innovative practice."

To learn more:
- read the press release from MGMA

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