If you’re wondering whether getting a nurse practitioner (or another one) on board isn’t cost-efficient, consider this MGMA report that shows for many practices adding NPPs can lead to more revenue.
The Medical Group Management Association (MGMA) has just released its annual
DataDive Cost and Revenue Survey, based on results obtained from more than 2,900 organizations and 40 specialties and practice types between 2015 and 2016, finds that “practices with a higher non-physician provider (NPP) to physician ratio (0.41 or more NPPs per full-time equivalent [FTE] physician) earn more in revenue after operating cost than practices with fewer NPPs (0.20 or fewer NPPs per FTE physician) regardless of specialty.”
This effect is seen most dramatically in the world of surgical specialties, where the survey finds a difference between low-NPP practices and high-NPP in total medical revenue after operating cost per FTE Physician of a whopping 56.58% in the high-NPP practices’ favor.
Primary care specialties only saw a 12.88% total revenue advantage from increased NPP use, but saw an impressive 54.93% productivity advantage in work RVUs per FTE Physician from it.
MGMA even found significant differences in revenue and productivity when practices increased their total support staff per FTE physician as well.
Among the other Cost Survey findings: a higher private payer component to a practice’s payer mix tends to lead to both higher operating costs and higher revenue; between 2015 and 2016 practice drug supply costs rose by 11%-16.5%; and in 2016 physician-owned practices spent between approximately $2,000 to $4,000 more per FTE physician on IT operating expenses than they did the prior year.
The Cost Survey can be purchased from MGMA here.