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Contact: Jennifer Bush (202) 828-0041, jbush@aamc.org
Contact: Dennis L. Barnhardt, APR, MGMA Communications Director (303) 397-7870, dbarnhardt@mgma.comMedical School Departments Have Increased Reliance On Patient Care Funding
Denver, May 14, 1999 - The percentage of funding from patient care for all medical school departments rose 3 percent in the past two years, totaling 60 percent of their department's total revenue according to the newly released Faculty Practice Activities Survey: 1998 Report Based on 1997 Data from the Medical Group Management Association (MGMA) and Association of American Medical Colleges (AAMC).
Managing the patient care component of their practice continues to be a primary focus for departmental administrators, said Laurel M. Weinstein, M.B.A., MGMA Survey Operations project manager. She stressed the importance for department administrators to be aware of their sources of income and to recognize that the evolving health care system is impacting how their departments are being funded.
While they must continue their vigilance on research and academic activities, department administrators also need to be aware of the continued importance that patient care revenue has on the financial success of their department.
"Medical school departments conduct different amounts of research, which can be easily assessed by comparing their funding sources," she said. "It is apparent that departments of medicine have a stronger emphasis on research and teaching than surgical specialties."
The report also provides data on the clinical productivity of faculty physicians at U.S. medical schools. It revealed that total department income - summarized for all departments - was $331,943 per full-time equivalent (FTE) faculty member.
The source that contributes most to a department's funding was patient care revenue, totaling nearly $200,000 per FTE faculty member, followed by medical school/university revenue ($35,994) and research funding ($34,831). University-affiliated hospitals were a source of $32,619 per FTE faculty member and an additional $14,773 came from the Veterans' Administration (VA). Other non-patient care services equaled $12,207 per FTE faculty member.
When all revenue sources were compared to similar data collected from 1995, research income remained constant at 11 percent of total revenue, funding from the VA decreased 1.2 percent to 4 percent of the total, and revenue from the medical school/university rose 2.1 percent to 11 percent.
Eileen O. Hardigan, FACMPE, administrator, Department of Obstetrics/Gynecology, Virginia Commonwealth University, Richmond, said medical school department administrators are faced with managing a challenging health care entity.
"They must understand the complexities of patient care reimbursement, research grants and the academic environment," said Hardigan, past president of the MGMA Academic Practice Assembly (APA). "With patient care revenue approaching two-thirds of a department's funding source, academic practice administrators need to be increasingly well-versed in managed care practices and federal reimbursement policies. "The APA and AAMC Group on Faculty Practice are focused on providing information for survey and educational activities to assist academic administrators accomplish this task."
Data retrieved from 939 departments, divisions Data for the report were offered by 547 clinical departments plus 392 divisions or sections from departments of medicine and surgery. The report includes information on:
- demographic characteristics for all responding departments, including distribution of department and division/section specialties, geographic section, staffing levels, revenue and other ratios;
- financial performance and clinical service activity by subspecialties for departments of medicine and surgery;
- FTE staffing levels for faculty, house staff, mid-level providers, and administrative and clinical staff;
- departmental financial information, including gross charges, percentage of revenue by payer, collection percentages and departmental expenses; and
- service volume data by current procedural terminology (CPT) code, delivery setting and specialty.
The Faculty Practice Activities Survey: 1998 Report Based on 1997 Data (Item #5129) is $160 for MGMA members, and $200 for MGMA affiliates and others, plus shipping and handling. To purchase, call the MGMA Service Center toll-free at (888) 608-5602 or (303) 397-7888. The survey report is $160 for AAMC members, and $200 for AAMC affiliates and others, plus shipping and handling. To purchase, call the AAMC publications office at (202) 828-0416. Founded in 1926, MGMA is the leading organization representing medical group practice. More than 8,300 health care organizations and 21,000 individuals are MGMA members, representing nearly 209,000 physicians. MGMA executive offices are in Englewood, Colo.
The AAMC represents the 125 accredited U.S. medical schools; the 16 accredited Canadian medical schools; some 400 major teaching hospitals, including 74 Veterans Administration medical centers; 87 academic and professional societies representing nearly 88,000 faculty members; and the nation's 67,000 medical students and 102,000 residents.
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Note to editors: For a complimentary copy of the survey report, contact Dennis L. Barnhardt, APR, MGMA Communications Director, at (303) 397-7870, or Jennifer Bush, AAMC Office of Communications, at (202) 828-0041.
This news release is also available electronically under the Newsroom button on the MGMA web site.
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