Patient-centered medical homes spend more, earn more

Patient-centered medical home practices spend about a third more per patient than non–medical home practices but earn nearly twice as much per patient after operating costs, the Medical Group Management Association reported.

Total operating costs for patient-centered medical home (PCMH) practices per patient in 2013 were, on average, $127, while non-PCMH practices spent $84 per patient. After operating costs, the total medical revenue for PCMH practices was $144 per patient, with non-PCMH practices earning $78 per patient – only 54% of what PCMH practices earned per patient, the MGMA said.

Total medical revenue after operating costs among primary care single-specialty practices was highest in the Midwest at just over $199,000 per physician, with the South lowest at $54,000, according to the MGMA. While primary care physicians in the East earned the least, primary care practices in the East earned $165,000 per physician, more than triple the revenue in the South and twice as much as in the West, where total medical revenue was just under $82,000 per physician.

The MGMA data were collected from 2,518 medical groups that responded to an annual survey.