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Kaufman Hall Report Highlights Increased Physician Workload Amid Stagnant Reimbursement

WHAT'S THE STORY?

What's Happening?

A recent report from Kaufman Hall, a Vizient company, reveals that physicians and advanced practice providers (APPs) are experiencing record levels of productivity. The quarterly Physician Flash Report for Q2 2025 indicates a significant rise in work relative value units (wRVUs), with physicians reaching 6,449 wRVUs per full-time employee, marking a 12% increase since Q2 2023. Similarly, APPs have seen an 11% increase in productivity. Despite these gains, the report highlights a concerning trend: reimbursement rates are not keeping pace with the increased workload and associated costs. This imbalance is further exacerbated by staffing shortages, as the number of medical support staff has not kept up with the rising productivity levels. The report also notes an increase in hospital bad debt and charity care, potentially linked to shifts in public insurance enrollment.
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Why It's Important?

The findings of the Kaufman Hall report underscore a critical issue in the healthcare industry: the growing disconnect between physician workload and reimbursement. This trend could have significant implications for the financial sustainability of healthcare providers, particularly if more patients lose insurance coverage. The increased productivity without corresponding reimbursement may lead to financial strain on hospitals and healthcare systems, potentially affecting the quality of care and access to services. Additionally, the persistent staffing shortages could hinder future growth and place further pressure on healthcare professionals, potentially leading to burnout and reduced job satisfaction.

What's Next?

As the healthcare industry grapples with these challenges, stakeholders may need to explore solutions to address the reimbursement gap and staffing shortages. This could involve policy changes to ensure fair compensation for healthcare providers and initiatives to attract and retain skilled medical support staff. The report suggests that if more patients lose insurance coverage, the situation could worsen, necessitating proactive measures to mitigate the impact on healthcare systems and patient care.

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