• Revenue Cycle Management
  • COVID-19
  • Diabetes Awareness Month
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

Value-based revenue makes up 6.74% of primary care income


MGMA report shows value-based contracts account for $30,922 per provider

The Medical Group Management Association released a report looking at the proliferation of value-based contracts and how quality metrics tie-in to revenue.

The report, 2022 MGMA DataDive Practice Operations, shows that revenue from value-based contracts accounted for varying amounts of total medical revenue in 2021 among reporting practices:

• 6.74% in primary care specialties

• 5.54% in surgical specialties

• 14.74% in nonsurgical specialties.

Across all practices, the median revenue amount from value-based contracts was $30,922 per FTE provider, according to MGMA.

Quality reporting measures make up a big part of value-based contracts. MGMA polling earlier in 2022 found that the adoption of quality performance metrics in value-based contracts also is being reflected in updated physician compensation plans, as 42% of medical groups tie some element of quality performance metrics to physician compensation plans.

The following measures were reported by respondents for their value-based contracts:

  • 3% hospital admission rate
  • 11% hospital 30-day readmission rate
  • 27% emergency department utilization rate
  • 1% 30-day post operative infection rate.

Prior to the COVID-19 pandemic, MGMA noted there was a very slow growth in the inclusion of quality metrics in compensation plans. About one in four (26%) medical groups tied quality performance to physician compensation in 2016, but by July 2018, the share of groups with quality tied to compensation rose to 36%. A March 2019 poll found that nearly 4 in 10 (38%) of groups had tied quality performance to physician compensation.

These numbers have increased since the pandemic. According to the MGMA, 35% report they have increased the share of compensation tied to quality in the past two years, 62% of medical groups have the same share of compensation tied to quality versus 2019 levels, while only 2% of respondents said they decreased the percentage of compensation tied to quality.

Medical groups use in-house analysts, vendors/software, or both to handle their analytics. The majority (45%) reported they use both in-house analysts and software, while 40% only use in-house analysts, with 15% using only vendors or third-party software.

Related Videos
Robert E. Oshel, PhD
Gary Price, MD, MBA
Victor J. Dzau, MD, gives expert advice
Ron Holder, MHA, gives expert advice
remote patient monitoring
no shows
effective meetings
© 2023 MJH Life Sciences

All rights reserved.