Two topics were top of mind for attendees at MGMA’s 2022 Medical Practice Excellence: Leaders Conference (#MPE22) – workforce challenges and revenue pressure. Sessions dealing with either topic were jammed packed and exhibitors that focus in either of these two areas were consistently busy. The consensus at #MPE22 was that there were no short-term solutions and that revenue both revenue and workforce challenges would continue deep into 2023.
Cost Impact of Changing Workforce
Medical practice leaders at #MPE22 all had a common refrain: staffing costs were rising exponentially while revenue has remained relatively flat. This has put many practices under financial and operational pressure.
Many practices who have never had to use staffing agencies are suddenly relying on them to fill clinical vacancies. One large group practice (who wished to remain anonymous) shared with Healthcare IT Today that they went from $0 spent on staffing agencies in 2019 to over $3M so far in 2022.
It is not just clinical staff where practices are feeling the pinch. Many have been forced to outsource administrative (ie: revenue cycle) and IT functions because they no longer have internal resources to do the work.
These increases in cost have not been offset by additional revenue.
No Silver Bullet
It was clear from the hallway conversations and session presenters that there was no silver bullet for solving either the workforce or revenue challenge. In fact, many we spoke to were focusing on mid to long-term solutions.
Some practices were teaming up with local educational institutions – colleges and even high schools – to encourage students to consider a career in healthcare. Jason Craig, Regional Chair of Administration at Mayo Clinic Health System in Northwest Wisconsin and MGMA Board Member, shared how “practices who are engaging with students are opening their eyes to all the different jobs in healthcare” and “that it is not just doctors and nurses that work in a health system – there are IT, customer service, finance, and marketing roles as well.”
In time, these efforts, combined with technology that can relieve the administrative burden on practice staff, should address the workforce challenge. Between now and then, practices will have to adjust and adapt.
Hope through Transformation
Dr. Halee Fisher-Wright, CEO of MGMA, believes that practices that practices will emerge stronger through these challenges. In fact she believes that the healthcare industry as a whole is going through a transformation that is being driven by new economics and consumer/patient preferences.
“Transformation is hard,” said Fisher-Wright. “There is a quote from Carly Fiorina that comes to mind: ‘Transformation is like heaven. Everyone wants to get there but no one wants to go through death first.’ We are resilient in healthcare and there are already those who are showing us this transformation is possible.”
Take what is happening in the behavioral health space, for example. Telehealth and other asynchronous technologies have made it much easier for patients to access care and get support when they need it. This transformation was accelerated by the sudden adoption of telehealth technologies during the COVID-19 pandemic.
Looking at the MPE22 exhibit hall, it is not hard to see that the current crop of technologies can help support practices in this transformation. From AI to voice recognition, there is reason to hope for stronger and more efficient practices in the near future.
