MD Ranger, powered by ECG
MD Ranger has unveiled its 15th annual report on physician contract benchmarks derived from 2023 data that demonstrate the scope of physicians’ roles.
SAN DIEGO, CA, UNITED STATES, June 5, 2024 /EINPresswire.com/ — MD Ranger has unveiled its 15th annual report on physician contract benchmarks. This year’s benchmarks, derived from 2023 data, demonstrate the scope and magnitude of physicians’ roles in hospitals and integrated health systems.
Healthcare providers use MD Ranger to set payment rates, document fair market value (FMV), and comply with federal and state fraud and abuse laws. Acquired in 2023 by ECG Management Consultants, a Siemens Healthineers company, MD Ranger is used in 180-plus US hospitals that utilize its automated documentation tools and comprehensive benchmarks as the foundation for compliance processes.
2024 Benchmark Key Findings and Expert Analysis
Many organizations have faced complex hospital-based service negotiations and upward pressure on subsidies provided to medical groups. This is demonstrated by an average increase of 15% in hospital-based total annual payment benchmarks. This increase exceeds all other transactions, including ED call coverage, which only increased 3% on average. “The new benchmarks illustrate what we’re seeing in our valuation practice—increasingly complex and expensive contracts for coverage of hospital-based services,” noted Aurora Young, a partner at ECG.
Fewer hospitals are compensating physicians for coverage of hospital-based services on a per diem (per physician, per day) basis, while overall stipends with larger groups are becoming more common. This is seen especially in obstetrics/laborists. Tessa Kerby, Associate Principal at ECG, states, “looking specifically at inpatient OB/GYN coverage, the market transition toward laborist programs is not surprising. The prevalence of high-risk pregnancies has doubled in recent years, which has led to hospitals investing in robust laborist programs to provide support and mitigate risks. This, paired with physician shortages and provider desire for less burdensome call rotations, has led hospital administrators to invest in reliable coverage via laborist groups.”
Several hospital-based services remained stable at the median in 2024, including general hospitalists, critical care, and maternal/fetal medicine. While growth in payment trends for these services in 2024 was not observed, many of these services have experienced large increases over time. Since 2020, anesthesia annual payments have increased more than 50% at the median and have doubled at the 75th percentile. Other services experienced dramatic increases this year, including radiology, emergency, and trauma surgery, whose median benchmark increased more than 20%. At the median, trauma surgery and general hospitalists were the highest-cost hospital-based services at almost $1.8 million; however, at the 75th percentile, anesthesia exceeded trauma surgery at $3.9 million versus $3.0 million.
New data suggests less pressure on ED call coverage arrangements than last year; however, exceptions exist. Across all services, ED call per diem rates increased an average of 5.7% at the median and only 2.8% at the 75th percentile. However, MD Ranger observed that four specialties increased more than 20% at the median, including oral/maxillofacial, pediatric orthopedic surgery, gynecology, and anesthesia.
Drawing from over 51,000 contracts across hundreds of healthcare providers nationwide, this report is recognized as one of the most comprehensive surveys of hospital-physician transactions in the US. The benchmarks span various services, including ED call coverage, medical directorships, administrative services, hospital-based services, medical staff leadership, telemedicine, diagnostic testing, and clinical hourly rates. The 2024 edition introduces over 35 new services, including craniofacial/facial injuries call coverage and ECMO medical direction.
MD Ranger’s benchmarks underscore physician transactions’ substantial impact on hospitals and integrated health systems. This year’s report helps healthcare organizations navigate the complexities of FMV, setting and documenting payment rates, and regulatory compliance. With the integration of MD Ranger, ECG affirms its dedication to providing healthcare organizations with the tools necessary to navigate an ever-evolving physician landscape, ensuring compliant and sustainable provider compensation practices.
For more information or to purchase the 2024 Report, contact Evan Rosborough (ejrosborough@ecgmc.com).
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About ECG Management Consultants, a Siemens Healthineers Company
With knowledge and expertise built over 50-plus years, ECG is a national consulting firm redefining healthcare with its clients. ECG offers a broad range of strategic, financial, operational, and technology-enabled consulting services. ECG is an industry leader, offering specialized expertise to hospitals, health systems, medical groups, academic medical centers, children’s hospitals, ambulatory surgery centers, investors, and payers/health plans. As an affiliated partner of Siemens Healthineers, ECG’s subject matter experts have a proven track record of delivering results fueled by top talent and technology.
Source: MD Ranger 2024 Benchmarks
Robin Plocharczyk
ECG Management Consultants
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