Ancillary care—lab tests, radiology, physical therapy, and other services which support the work of primary physicians—is becoming increasingly important as a revenue generator for medical practices.
According to data in the latest issue of MGMA Connection, single-specialty practices with ancillary care earn more revenue—up to $245,500 per physician in the case of surgical specialties. These practices spend an average of only 5% more per physician on operating costs to achieve these significant revenue gains.
Investing in Ancillary Services
As pointed out by Medical Economics, expanding ancillary services makes sense in light of “declining reimbursements, rising costs, and growing patient demand for ‘one stop shopping’ in medical services.”
Consideration of which services to offer must be done on an individual practice basis and include a thorough cost-benefit analysis, especially for those services requiring large investments for equipment or staff training.
A medical practice should begin the process by evaluating which services are referred out and the type of ancillary services gaining in popularity in the local market, Medical Economics reports.