What You Should Know:
– Physicians and advanced practice providers (APPs) are working at record levels, , according to the quarterly Physician Flash Report from Kaufman Hall, a Vizient company.
– Despite the overall positive financial trend for hospitals in June, the report also found an increase in hospital bad debt and charity care, which may be linked to a shift in public insurance enrollment. The report, which draws on data from over 1,300 hospitals, found that revenue on a volume-adjusted basis increased, as did outpatient revenue and operating room minutes.
Productivity Rises Amid Staffing and Reimbursement Challenges
The quarterly Physician Flash Report for Q2 2025 found a significant increase in productivity, measured in work relative value units (wRVUs). Physician productivity hit 6,449 wRVUs per full-time employee, a 12% increase since Q2 2023. Similarly, APPs reached 5,030 wRVUs, an 11% increase over the same period.
Experts at Kaufman Hall note that this surge in productivity is not due to a 2021 change in the Medicare Physician Fee Schedule, which had previously inflated wRVU calculations. Instead, the data reflects a reality where healthcare professionals are simply doing more work.
Despite the increase in work, the report highlights a critical imbalance: reimbursement is not keeping pace with the rising workload and costs. The report cautions that this trend could worsen in the coming months if more patients lose their insurance coverage.
Staffing Shortages and Hospital Financial Performance
The report also points to a persistent and worsening trend: a decline in medical support staff levels relative to the number of wRVUs generated. This ongoing shortage of skilled healthcare professionals could act as a barrier to future growth and puts additional pressure on physicians and APPs.
However, Kaufman Hall’s latest National Hospital Flash Report offers a glimmer of positive news for hospitals’ financial performance in June.
“Increases in productivity metrics, coupled with higher compensation and expenses, reflect a reality that physicians and advanced practice providers are working more than ever before,” said Matthew Bates, Managing Director and Physician Enterprise Service Line Leader with Kaufman Hall. “Revenue has increased because physicians and providers are working more, but the data also show that reimbursement is not keeping pace. In the coming months if more patients lose insurance coverage, this trend will likely get worse.”
