MGMA Week in Review: Navigating Rising Costs and Staffing Challenges in Medical Practices
Download MP3Welcome to the MGMA Week in Review podcast. Hosted by Daniel Williams, Senior Editor at MGMA, and Colleen Luckett, Editor and Writer at MGMA. This episode covers the latest healthcare news and trends, including strategies for managing rising operating costs, solutions for staffing challenges, and innovative ideas for repurposing closed rural hospitals.
Key Takeaways:
- Rising Operating Expenses (03:21 - 05:20)
- Stat Poll Results: 92% of medical group leaders report increased operating expenses in 2024, up from 89% in 2023.
- Cost Drivers: Major expense drivers include rising salaries (cited by 60% of respondents), medical supplies, and utilities.
- Financial Strategies: Practice leaders are combining offices, renegotiating contracts, and switching vendors to manage costs.
- Staffing Challenges and Solutions (05:21 - 08:50)
- Compensation Trends: Administrative staff saw a median total compensation increase of 4.7%, while nursing staff saw a 3.2% increase.
- Regional Variations: Western Region salaries are higher, with administrative staff earning a median of $62,000 annually compared to $55,000 in the Eastern Region.
- Retention Strategies: Emphasize competitive compensation, annual cost-of-living adjustments, and offering advanced degrees and specialized certifications.
- Staffing Solutions: Use locum tenens (16% of practices expect to increase usage) and contracted providers to fill staffing gaps and consider flexible work arrangements to retain talent.
- Healthcare Policy Changes and Uninsured Rate Projections (08:51 - 13:20)
- Future Projections: The uninsured rate is expected to rise from 7.7% in 2023 to 8.9% by 2034, adding approximately 1.7 million uninsured people each year.
- Impact on Practices: Prepare for potential increases in uninsured patients and explore policy advocacy to address these changes.
- Policy Discussions: Engage in ongoing policy discussions and legislative actions to mitigate the impact of these changes.
- Youth Anxiety Factors (13:21 - 17:20)
- Technological Impact: Michael Dowling's article discusses how rapid technological advancements and social media contribute to youth anxiety.
- Academic and Social Pressures: High expectations in schools and from parents increase stress among young people.
- Resilience Building: Foster environments that promote mental well-being, resilience, and healthy coping mechanisms.
- Rural Hospital Closures and Repurposing (17:21 - 20:50)
- Economic and Social Impact: Since 2010, 149 rural hospitals in the US have closed, with Tennessee experiencing the second-highest number of closures per capita.
- Innovative Solutions: Communities are repurposing closed hospitals into education centers, technology hubs, or treatment facilities.
- Case Examples: Somerville turned its closed hospital into a satellite campus, while Mackenzie repurposed theirs for a tech company.
Direct Links to Resources Mentioned:
- MGMA Stat
- Register for MGMA Focus Staffing Conference
- David Gans’ Article on Financial Challenges
- Michael Dowling’s Article on Youth Anxiety
- Healthcare Dive Article on Uninsured Rate
- Repurposing Hospital Space
We Want to Hear From You: Let us know if there's a topic you want us to cover, an expert you would like us to interview, or if you'd like to appear on an MGMA podcast. Email us at:
- Daniel Williams: dwilliams@mgma.com
- Colleen Luckett: cluckett@mgma.com
Thank you for tuning in to the MGMA Podcast Network. Please subscribe and leave us a review. See you next time!
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Are your patients concerned about out-of-pocket costs? Is your practice looking for a way to help address those concerns and improve the patient experience? Then, you may want to consider offering the CareCredit credit card as a payment option. For over thirty-five years, CareCredit, a Synchrony solution, has been offering patients a way to pay for health and wellness expenses not covered by insurance. CareCredit can seamlessly integrate with your business and offer a valuable financing option for your patients so they can pay for services or products over time to help fit their budget. To learn more about how CareCredit works for you and your patients, visit www.carecredit.com/mgmapodcast.
NextGen
Looking to transform your healthcare practice with AI? NextGen Healthcare is leading the way by leveraging artificial intelligence. It is helping practices improve efficiency, streamline workflows, and enhance patient outcomes. From predictive analytics to automating routine tasks, NextGen Healthcare's AI solutions are revolutionizing the delivery of care. Don't miss out on the future of healthcare innovation. Visit https://www.nextgen.com/ today to learn how NextGen Healthcare can help you drive efficiency and elevate patient care.
