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This data is part of the outcomes from the first practice management financial data survey, conducted by the AAAAI Practice Management Committee. The committee collected data from 53 practices representing 139 physicians, who were willing to share information about what their practices charge, collect and expend. An additional 21 practices representing another 47 physicians completed the questions on the survey regarding staff support manpower use. “We hope this data is helpful in allowing AAAAI members to internally evaluate their individual practices,” said Marshall Grodofsky, MD, Chair of the AAAAI Practice Management Committee. “It will assist us in developing operational benchmarks.”   Data was solicited through a four-month, online survey regarding data from the 2005 tax year. Participants were asked questions about practice demographics, such as location and number of physicians in the practice, actual charges, collections, expenses and staffing data.  “We felt we had an advantage over other surveys that evaluate financial performance, because we were able to utilize Academy resources, and internally encourage all our members to participate in the survey, which we hope will become an annual exercise,” Grodofsky said. “This should allow us to calculate data that has never been collected before, and ultimately allow us to make recommendations for the best practices in allergy/immunology office operations.” A synopsis of the survey results includes: Total charges per physician Median result: $981,378/physician Mean: $1,038,238/physician, with a range between $75,000 and $2,448,459 Total collections per physician Median result: $695,101/physician Mean: $697,518, with a range between $45,000 and $1,615,011 Collection ratio (collections/charges) Mean and median: 69.6%, with a range of 41.2% to 89.6% Expenses per physician Median result: $387,500/physician Mean: $410,664/physician, with a range between $42,000 and $983,339 Profit per physician (calculated as fees collected minus expenses) Median result: $270,000/physician Mean: $306,666/physician with a range between $3,000 and $940,000 Practices employing physician extenders Twenty-five of the 74 practices reporting employ physician extenders. Eight of those 25 practices were solo practitioners, out of a total of 38 solo practices reporting. The median result shows that the profit per physician in practices with physician extenders was $309,029, compared to $250,000 in practices without extenders. Physician extenders are most often physician assistants and nurse practitioners, as well as nurse-midwives and other allied health professionals. Staff support manpower needs, based on full-time equivalent (FTE) employees per physician Mean of 5.2671 FTE/physician Immunotherapy charges as a percentage of total charges Mean of 27.62% with a standard deviation of 14.89% Regional differences Allergists from the Southeastern states charged and collected more on average than allergists from other regions, although the sample size from allergists in Western, Central/Rocky Mountain, and Mid Atlantic states were too small to allow for statistically significant evaluations. “I feel the most interesting and personally surprising findings were seen when the data was divided comparing group practices with solo practitioners, and later further divided into larger groups with more than four physicians,” Grodofsky said. “I had always assumed that any economic advantage of being in group practice would be due to an economy of scale, where expenses per physician would be lower. The data clearly showed a trend that refuted this assumption. The mean expense per physician calculated showed a difference of $377,497 in solo practices compared to $477,033 in group practices. This increase in expenses was compensated for by an overall increase in per physician fees collected, with a mean of $809,592 in groups, compared to $668,814 in the solo practices. “Overall, I feel this process was successful in allowing us to start collecting data regarding the practice performance of allergists throughout the country,” Grodofsky said. “However, members should keep in mind that publishing this information in no way reflects any belief that there is an appropriate amount that any individual should charge, collect, expend or earn in operating an allergy practice.” Members only can click here for a complete list of the survey results. Questions regarding the data or survey methods may be directed to Carmella Canada at the AAAAI executive office at (414) 272-6071, or e-mail ccanada@aaaai.org.   <back>
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