Healthcare reform driving up technology costs, use of NPPs

Technology is costing physicians 12 percent more per year than it did in 2010, according to the MGMA Cost and Revenue Survey.

Support needs for physicians, necessary upgrades and adapting to the way multi-generational patients request healthcare is forcing medical practices need to incorporate technology at a greater level. Physician owned, multispecialty practices reported an 11.87 percent increase spent on operating costs associated with technology since last year, spending $20,693 per FTE physician in 2014. Since 2010, this number has increased by 33.92 percent.

“As technology continues to evolve, medical practices must likewise also evolve,” commented Halee Fischer-Wright, MD, MMM, CEO of MGMA, said in a release. “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 compliancy requirements.”

Medical practices also reported an increased utilization of nonphysician providers (NPPs) per FTE physician. Physician-owned, surgical single specialties have seen a 44.07 percent increase since 2010 (a rise from 0.59 to 0.85 nonphysician provider FTEs per FTE physician.) Many medical practices are using NPPs as a solution to the physician shortage and the influx of new patients resulting from the Affordable Care Act, according to the organization. 

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

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