With the introduction of such initiatives as the Affordable Care Act (ACA), ICD-10 coding system, and Meaningful Use State 2 guidelines, the U.S. healthcare landscape is rapidly changing, impacting the operation—and as a result, the profitability—of private practices across the country.
Practice-management software company CareCloud collaborated with online healthcare collaboration forum QuantiaMD to produce its second annual Practice Profitability Index (PPI). Key findings from the 2014 PPI are illustrated in editorial and an infographic shared by HIT Consultant.
The digital media platform’s article also notes more than 5,000 U.S. physicians were surveyed on issues impacting the financial and operational health of their medical practices. According to the report, the profitability of private practices continues to wane, and US physicians are more than twice as likely to expect decreasing profits. Other significant conclusions:
- Declining reimbursements and rising costs are the most common reasons physicians said their profitability is dropping.
- 40 percent of physicians believe patient-engagement programs have most promise to improve operational performance.
- One in four spend more than 40 percent of their time on administrative duties, instead of patient care.
- 24 percent of physicians are considering selling their practice.
With the services of locum tenens providers widely sought across the country, a lucrative career in healthcare outside of the private practice setting is a reality for many physicians in all specialties. A number of providers opt for full-time locum tenens practice as a way to eliminate the stresses and overhead expenditures of practice management.
With the implementation of the ACA, which is expected to dramatically increase healthcare demand, locum tenens opportunities are more prevalent than ever before, offering physicians increased options to maintain, and even build, their profitability.
Check out additional findings in the PPI infographic below.
