AMA: Physician practice revenue down 32%

The American Medical Association recently released its COVID-19 Physician Practice Financial Impact report, which reveals reductions in patient volume and revenue, as well as higher practice costs during the COVID-19 public health emergency (PHE).

The AMA administered a 40-question online survey to 3,500 physicians during the months of July and August. All respondents were physicians practicing in the U.S. who provided at least 20 hours of patient care per week prior to the pandemic.

According to the report, at the time of the survey, 81% of respondents were providing fewer in-person visits than before the pandemic. Furthermore, 19% percent reported a revenue drop of more than 50% for in-person patient visits, although the average drop in revenue was 32%.

The survey data also revealed that increases in telehealth services did not offset reduced in-person visits. At the time of the survey, weekly telehealth visits were almost three times higher than pre-pandemic levels. Despite the telehealth increase, nearly 70% of physicians reported providing fewer total visits (in-person and telehealth visits) than prior to the pandemic.

In addition, 64% of practice owners said that spending on personal protective equipment (PPE) was up from pre-pandemic. The average increase in PPE spending was 57%, with 39% of respondents reporting more than a 50% increase. 

The majority of respondents said the federal financial assistance programs including the Coronavirus Aid, Relief, and Economic Security Act (80%), Medicare Accelerated and Advance Payment Program (71%), and Small Business Administration Paycheck Protection Program (88%), were very or extremely helpful.

“Physician practices continue to be under significant financial stress due to reductions in patient volume and revenue, in addition to higher expenses for supplies that are scarce for some physicians,” said Susan R. Bailey, MD, president of the AMA, in a statement. “More economic relief is needed now from Congress as some medical practices contemplate the brink of viability, particularly smaller practices that are facing a difficult road to recovery.”