Unlike many other businesses, medical practices can’t pass on rising costs–such as increasing rents, employee salaries and utilities–to their customers, or in this case, patients. But they must find some way to control them.
Indeed, physician practices report an increase in overhead costs, according to Physicians Practice. The 2016 Physician Compensation Survey by the publication found that in the course of a year, 8.4 percent more respondents reported that overhead costs were close to or exceeding half of their practice revenue.
“Unlike most businesses that can pass along increased expenses to consumers, primary care physicians can’t do that because of governmental regulations and the way that health insurance companies operate,” Steven Fisher, M.D., an internist at Fairfield County Medical Group in Trumbull, Connecticut, tells the publication. Administrative costs are one major factor that has increased expenses for practices.
Read the entire article: Fierce Healthcare