KEY FINDINGS: STATE OF PHYSICIAN PRACTICE PROFITABILITY, ACQUISITIONS & TECHNOLOGY
72% of physician practices, whether networked, independent or part of a large group or hospital system anticipate declining-to-negative profitability in 2014 due to diminishing reimbursements and underutilized or inefficient billing and records technology.
"Over the past year, the overwhelming desire to keep practices from being acquired or selling out has changed drastically," noted Doug Brown, Managing Partner of Black Book Market Research LLC.
In May 2012, nine out of ten independent physicians wanted to maintain independence from hospital or larger group practice acquisition. "Profit challenges have forced the number of practices actively seeking acquisition to more than to triple until recently, as cloud EHRs with RCM innovations have given independents new hope," adds Brown.
88% of business managers fear that the ramifications of their outdated and/or auto-piloted revenue cycle management systems, particularly those not integrated to EHRs, will force their physician to sell the entire practice operation to a larger physician group or hospital within 12 months or face practice dissolution.
86% of business managers are certain their old practice management and revenue cycle cannot accommodate upcoming regulatory requirements and updates. Nearly 100% state the practice’s financial software and workflows are unprepared for ACO participation.
97% of business managers confirm that an innovative, seamless RCM/PM/EHR system would ensure long term practice independence, and greatly improve productivity and profitability.
88% of Hospitals and 76% of Large Physician Groups procuring independent physician practices find there was little/no useful salvageable technology (EHR, PM, or RCM) in the acquisition of practice assets.
81% of practices acquired in
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