Part
01
of one
Part
01
What is the total U.S. net patient revenue from large IPAs (e.g., groups >20 physicians)?
Hello! Thanks for your question about the total U.S. net patient revenue from large IPAs. The short version is that after searching extensively through Government reports/databases, trusted media sites and industry reports, such as the Independent Physician Association of America and the Biennial Physician Survey, very little information on net patient revenue could be found. I’ve determined that the information you requested is not publicly available, because details of net patient revenue are not published for smaller practices.
However, I was able to learn that a market opportunity exists for those wanting to target large IPAs (with 1000+ physicians), as the most profitable can make up to $6 million per physician. Below you will find a deep dive of my research and methodology.
METHODOLOGY
I searched through public records to find as much information as possible. The Biennial Physician Survey gave useful information on the number of physicians in each medical practice (for example, 19.3% of medical practices consist of more than 31 physicians), but it gave no detail on patient revenue. The IPA Association of America is a trade organization for IPAs; it reports membership of 677 IPAs in 39 states and 2900 "affiliate" IPAs. But no information on the size of revenue of these IPAs is specified.
Crains List, covering Detroit, gave information on the size of IPAs, but again no information on net patient revenue could be found. I do not think this information is in the public domain.
HELPFUL FINDINGS
While I could not find a direct answer to your question, I was able to gather some information about this topic, which I think will be helpful for your project.
Typical large IPAs (1000+ physicians) show a net patient revenue of between $2 million and $3 million per physician. For example, The Cleveland Clinic, which consists of approximately 2000 physicians, had a net patient revenue of $6.4 billion in 2014. This equates to around $3.2 million per physician. Whilst Mercy Clinic, a Catholic healthcare system serving over 140 communities in seven states, has 1,735 physicians and showed net patient revenues of $4.26 billion for 2015 - $2.5 million per physician.
The greatest net patient revenue per physician I found was North Shore Long Island Jewish Group (1,155 physicians). In 2015, this group had a net patient revenue of $6 million per physician, $6.9 billion in total. The Aurora Medical Group (1,193 physicians) had the lowest net patent revenue per physician - just $900k for the period ending March 31, 2016.
Unfortunately, data for smaller IPAs is not publicly available. The 2016 Physician Survey showed that only 19.9% of medical practices had more than 101 physicians. 33% of physicians are independent and information on these smaller practices is not available. It is not possible to extrapolate data from these larger groups, as smaller practices will operate with very different overheads.
POSSIBLE CONTINUED RESEARCH
In understanding what types of information are and are not publicly available on this topic, I’ve suggested a few other routes you may be interested in researching:
-A list of diagnostic tests, ordered by revenue.
-An investigation into medical devices bringing revenue into a physician's practice.
-An investigation into the professional services offered by IPAs (eg. a cardiologist to interpret the echocardiogram ) and how much is spent on these annually)
CONCLUSION
To wrap it up, after searching extensively through public records, a direct answer to your question is not publicly available because details of net patient revenue are not in the public domain. However I learned that large IPAs can make over $6 million per physician annually.
If you’d like to continue research on any of the other topics I’ve outlined above, just let us know! Thanks for using Wonder!