It is exceedingly difficult for hospital employed groups to achieve financial self-sufficiency especially with multiple primary care providers (PCPs).
Family, internal medicine, and pediatric practitioners are seeing salaries of $250,000 with potential increases. There is more need for PCPs than supply, which will continue to drive up salaries faster than reimbursement.
The loss on hospital-employed PCPs typically exceeds $200,000 and this gap decreases by improving productivity and increasing patient volume, however, PCPs can increase their revenue by assuming risk and helping to avoid unnecessary emergency room visits and hospital admissions.
Enrolling in value-based contracts provides PCPs with an enhanced revenue stream and the ability to increase compensation.
Practices have shown success by establishing systems to monitor and control patients with co-morbidities such as diabetes and cardiovascular issues and actively monitor patients’ use of health resources.
Over 50% of all Medicare patients are in Medicare Advantage programs and PCPs need to develop systems to manage their care and cost.
Practices that are successful at managing risk will satisfy patients and approach financial self-sufficiency.
To discover more, listen to Value-Based Care Insights, episode 88 here. If you want to learn more reach out to Jeff Peters via email at jpeters@luminahp.com, connect on LinkedIn, or visit www.luminahp.com/medical-group-strategy.