The just-released results of a survey conducted by the Englewood, Colo.-based Medical Group Management Association (MGMA) show that medical group leaders are extremely nervous about the financial impacts of the COVID-19 pandemic on group practice stability.
On April 14, MGMA posted what it’s calling an “advocacy resource,” entitled “COVID-19 Financial Impact on Medical Practices.” The results of the association’s survey of its members show an extreme level of concern, with fully 97 percent of member medical practices already experiencing “a negative financial impact directly or indirectly related to COVID-19.”
As MGMA stated, “This survey was conducted April 7-8, 2020, with a total of 724 applicable responses. Approximately 75 percent of respondents are part of independent medical practices and employ less than 50 full-time-equivalent (FTE) physicians.”
As MGMA stated, “Medical group practices of all sizes and specialties have felt the direct and indirect financial impact of the COVID-19 pandemic. Whether treating patients on the front lines or facing a massive decrease in patient volume, practices are struggling to stay afloat – and many fear that this is only the beginning. MGMA is advocating tirelessly for Congress and the Administration to support group practices during this public health emergency.”
MGMA noted that “A significant number of medical practices have already been forced to lay off and furlough staff in response to the financial challenges of COVID-19. Many who have not yet lay off or furloughed staff will consider doing so if conditions persist over the next 30 days. ‘All doctors and administrative staff have deferred their salaries during this time,’ noted a small independent practice in Mississippi specializing in pain management. ‘We have laid off most of our staff except five people.’”
And an executive with an independent rheumatology practice in Texas reported that, “In addition to the decrease in volume and revenue, there are increases in expenses related to COVID, such as technology to support telehealth needs and remote providers/staff and PPE (i.e. procedure masks are now $1 or more per mask, and we are using large quantities when we rarely used to use any).”
And the leader of an independent gastroenterology practice stated that “Our endoscopy procedures have dropped from 300/week to 8/week.”
Indeed, MGMA found that, “On average, practices report a 55-percent decrease in revenue and 60-percent decrease in patient volume since the beginning of the COVID-19 crisis.” And the association quoted the leader of an independent anesthesiology practice in Alabama who stated that, “Not only has 70 percent of our revenue disappeared, but our physicians are still working every day, exposing themselves to risks, taking care of patients, and taking care of their employees by continuing to pay them while they have taken over a 50-percent pay cut.”
“Our new data reflect a shocking decline in the number of patients seeking non-COVID-19 medical care during this crisis,” stated Anders Gilberg, Senior Vice President of Government Affairs, in a statement accompanying the release of the survey results. “Patients are foregoing necessary preventive and even acute care out of fear of exposure. Medical practices are struggling to keep their doors open as volume collapses. The nation faces a second wave access crisis when the pent-up demand for non-COVID-19 care is released and the rest of our healthcare system is off-line as a result of the pandemic.”
