The San Francisco Business Times is running a great article about how Hill Physicians Medical Group’s NextGen implementation is impacting the organization’s revenues. Here’s the entire story:
Hill Physicians Medical Group, one of the few medical groups or IPAs to publicly divulge its financial results, generated $428 million in revenue and $5.3 million in net income last year, according to preliminary figures from the San Ramon-based group. Its formal annual report is expected by early June.
Dan Robinson, vice president of corporate services for 2,600-doctor Hill and its PriMed Management Consulting Services management group, said 2006 revenue increased 3.4 percent over the prior year. Net income fell 31 percent, from $7.7 million in 2005, due to a steep increase in funds invested in implementing its electronic medical record system and increased performance-based pay for its doctors.
Hill spent $5.89 million on its EMR implementation last year, 78 percent more than 2005′s $3.3 million, Robinson said; meanwhile, performance-based pay jumped 23 percent, from $26 million two years ago to $32 million in 2006.
PriMed’s administrative costs remained low, he said, at 10.8 percent, “whereas other similar groups generally run in the 13 percent to 14 percent range.”
Hill, run by longtime CEO Steve McDermott, is considered one of the best-run IPAs in California, if not the nation, and is one of the very few to provide any public accounting of its financial results. “Bottom line, financial performance remained strong again,” Robinson said of the preliminary results. “We’re continuing to invest aggressively but judiciously in clinical and technical support services that support our physicians’ practices.”
Ryan Howard
CEO, Practice Fusion
