Practice revenue and cost distribution for ophthalmology, 1988 to 1993
J. Khadem, M. Frenkel and C. Do
Department of Ophthalmology and Visual Science, University of Chicago, IL, USA.
As opthalmologists need to better manage their practices, information
regarding distribution of practice costs becomes more relevant. In this
study, we compare revenues and costs from published sources to determine
changes over time and across surveys. We also evaluate the reliability and
validity of these statistics. Data were obtained from the Health Care
Financing Administration (for 1988), the American Medical Association (for
1988, 1990, 1992, and 1993), and the Medical Group Management Association
(for 1988, 1990, 1992, and 1993) and were compared across years and
surveys. We found large differences among the surveys in both dollar
amounts and percentages of total revenue for some of the reported cost
categories. Analysis of the data over time showed less of a decline in
physician earnings than expected, although there were large increases in
the category "other costs." We found considerable divergence among the
statistical results. Opthalmologists, public policymakers, and managed care
organizations must exercise great caution in interpreting such data and in
applying their findings to individual ophthalmic practices and
practitioners.