News Feature | October 21, 2015

Docs Spending More On HIT

Katie Wike

By Katie Wike, contributing writer

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According to a Medical Group Management Association report, spending on healthcare technology has increased over the last years as part of an effort to bolster quality of care.

A survey of 3,120 physician groups has uncovered that, in the last few years, spending on healthcare technology has increased and operating costs have surged. The accompanying report, The MGMA Cost and Revenue Survey: 2015 Report Based on 2014 Data, explains physicians reported a 12.02 percent increase in spending on total operating costs per full-time-equivalent (FTE) physician since 2010.

“As technology continues to evolve, medical practices must likewise also evolve,” said Dr. Halee Fischer-Wright, CEO of MGMA. “The way patients ask for and receive care is changing. The increased use of technology can improve the quality of patient care by improving records management, optimizing workflow and meeting HIPAA compliance requirements.”

iHealth Beat reports spending is often motivated by the need to improve records management,

meet HIPAA requirements, and optimize workflows. This caused physician-owned, multispecialty practices to spend:

  • an average of $20,693 per FTE physician in operating costs associated with technology in 2014
  • 12 percent increase from 2013
  • 34 percent increase from 2010

Physicians also noted an increase in use of NPPs or nonphysician providers. According to Healthcare IT News, increases are due to growing physician shortages combined with the higher number of new patients coming into practices as a result of the Affordable Care Act. The survey found physician owned, surgical single specialties have seen more than a 44 percent increase in NPPs since 2010.

“NPPs are essential members of our healthcare delivery team,” said Michael Brohawn, Practice Administrator at Orthopaedics East & Sports Medicine Center and MGMA member. “They improve patient care by increasing the efficiency of our physicians which allows them to focus on more acute needs. NPPs also improve patient satisfaction by creating greater access and appointment availability, and they reduce the direct and overhead costs of the practice.”