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!
Podcast Sponsor Boost Lingo
This episode is brought to you by Boost Lingo, the language services platform behind MGMA Translate, interpreter delays and high agency fees, strain budgets, and staff morale. Boost lingo on demand fixes both tap once and a qualified medical interpreter joins in about 13 seconds. Video or phone on any device. No steep learning curve. It just works. Tap, connect, care. Choose from 14,000 interpreters covering over 300 languages. Fully HIPAA compliant. Your staff will love the ease and your patients will too. Plus MGMA members save 20%. Visit https://boostlingo.com/mgma/ to see it in action today.
Podcast Sponsor MGMA Analytics
Are you making decisions based on gut instinct—or on real data?
With MGMA Analytics, you get the benchmarking and business intelligence tools to drive smarter strategies.
From provider compensation to operational costs, MGMA Analytics gives you access to the most trusted data in the industry.
So whether you’re adjusting staffing, setting salaries, or planning for growth, make your next move with confidence.
Visit MGMA Analytics to learn more.
This episode is brought to you by Boost Lingo, the language services platform behind MGMA Translate, interpreter delays and high agency fees, strain budgets, and staff morale. Boost lingo on demand fixes both tap once and a qualified medical interpreter joins in about 13 seconds. Video or phone on any device. No steep learning curve. It just works. Tap, connect, care. Choose from 14,000 interpreters covering over 300 languages. Fully HIPAA compliant. Your staff will love the ease and your patients will too. Plus MGMA members save 20%. Visit https://boostlingo.com/mgma/ to see it in action today.
Podcast Sponsor MGMA Analytics
Are you making decisions based on gut instinct—or on real data?
With MGMA Analytics, you get the benchmarking and business intelligence tools to drive smarter strategies.
From provider compensation to operational costs, MGMA Analytics gives you access to the most trusted data in the industry.
So whether you’re adjusting staffing, setting salaries, or planning for growth, make your next move with confidence.
Visit MGMA Analytics to learn more.
