Most of your peers cut costs by freezing salaries, reducing benefits or even laying off employees in 2009, according to the results of the most recent survey by the Medical Group Management Association (MGMA). Practice specialty played the biggest role in 2009 revenues, the survey also showed. Family practitioners saw a 2.5% revenue increase while urology and cardiology lost big time, with declines of 10.8% and 8.8% respectively. NOTE: These findings mirror the Part B News analysis of MGMA compensation surveys, covered in our Benchmarks.
Many practices cut costs by hitting their employees, the survey showed. "With the increased financial pressure on practices, many chose to initiate hiring and salary freezes," Ken Hertz, principal with the MGMA Health Care Consulting Group, said in a press release. "Additionally, some practices looked to layoffs and increased use of part-time staff due in part to reduced patient volume."
Going forward, practices are more likely to cut hours rather than lay off staff, he said. "We don't expect to see layoffs continue. Practices will remain cautious and use this time to fine tune their staffing patterns.