What is a Medical Group Practice Management Company?
A client recently asked me to research the Medical Group Practice Management (MGPM) industry. His client manages a physician practices’ billing and coding, eligibility and enrollment, patient and pay and recovery. I started my research with a quick Google search, which led me to the trade association Medical Group Management Association. A few more searches in proprietary databases led me to companies such as MEDNAX and Apollo Medical Holdings.
I quickly learned that discussion of the MGMP industry really dealt with large physician practice firms with subsidiaries that provide management services. In fact, I found a 2008 quote that defined an MGPM firm as “consisting of three or more physicians practicing medicine as a legal entity sharing business management, facilities, records, and personnel.”
The company my client was valuing was not a physician practice; it was more of a human resources/benefits consulting type of business. Because of the specialized nature of the industry,it was difficult finding specific forecasts for MGPM firms that are not physician practices.
For this particular project, I provided forecasts for both industries. Industry research firm IBISWorld forecasts MGPMindustry revenues will increase at an average annual rate of around 2% during the period 2017-2022,and Human Resources & Benefits Administration industry revenues will increase at an average annual rate of 0.76% during the same period.
Mary Pat Wheeley. “How Does One Become a Medical Practice Manager.” Manage My Practice. https://tinyurl.com/yafy6kon
Jack Curran. Medical Group Practice Management in the US. IBISWorld, Inc. November 2016.
Anthony Gambardella. Human Resources & Benefits Administration. IBISWorld, Inc. July 2017.