On this episode of the MGMA Week in Review podcast, hosts Daniel Williams and Colleen Luckett dive into key updates shaping medical group practices. They explore how healthcare leaders—especially Chief Nursing Officers—are becoming central to advocacy efforts, examine the mounting pressures on rural hospitals, and break down how real estate decisions can either support or stall private practice growth. Plus, they share new MGMA Stat poll results on operational costs and preview insights from the latest issue of MGMA Connection magazine on the future of independent practices.
Timestamps and Resources:
00:50 – Welcome to MGMA Week in Review
01:26 – The Importance of Policy and Advocacy in Healthcare (Health Leaders Media)
03:37 – Upcoming Government Affairs Webinar (Government Affairs Webinar)
04:35 – Challenges Facing Rural Hospitals (Beckers Hospital Review)
06:55 – MGMA Stat Poll Insights (MGMA Stat)
09:11 – Real Estate Considerations for Medical Practices (Medical Economics)
12:03 – What’s Next for Medical Practice Leaders? (MGMA Connection Magazine)
13:46 – Conclusion and Upcoming Events
Additional Resources:
Email us at dwilliams@mgma.com if you would like to appear on an episode. If you have a question about your practice that you would like us to answer, send an email to advisor@mgma.com. Don't forget to subscribe to our network wherever you get your podcasts.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Daniel Williams (00:05):
Hi, everyone, and welcome to the MGMA Week in
Review podcast. Daniel Williamshere along with Colleen Luckett.
We are editors and writers atMGMA and host of the MGMA Week
in Review podcast, where eachepisode, we bring you the latest
health care industry news,policy updates, expert insights,
(00:26):
and then the stories we findinteresting out in the field of
health care and medicalpractices. So with that in mind,
Colleen, what is going on inyour world?
Colleen Luckett (00:36):
Hey, everyone. This next one may not directly
match your job title, but Iwanted to share it because it
highlights something we're allstruggling with, the growing
urgency for healthcare leadersto engage in policy and
advocacy. In a new healthleaders article titled A CNO
Guide to Participating in Policyand Advocacy, editor G. Hatfield
(00:57):
highlights why nurse leaders,especially chief nursing
officers, need to engage inhealth care policy now more than
ever. The article recaps thisrecent webinar called The
Winning Edge for AdvancingNursing Advocacy and
Legislation, featuring nursingleaders from UW Health, Denver
Health, and the AmericanHospital Association.
(01:18):
Panelists tackled some of themost pressing legislative issues
affecting nurses today fromskyrocketing rates of workplace
violence to Medicaid rollbacksunder the one big beautiful bill
act, I guess they're calling it,OBA, which could severely impact
rural hospitals and vulnerablepatients. They emphasized that
(01:39):
CNOs should track legislation ontelehealth, APRNs, staffing
ratios, and even childcare,build relationships with
legislators and hospitalassociations, and use a
combination of data andstorytelling to drive policy
change. So what's the takeawayfor MGMA members? These nursing
advocacy efforts touch everycorner of medical practice
(02:01):
leadership affecting staffing,safety, compensation models, and
access to care. So even if youdon't have nurse in your title,
these policies shape theenvironment you operate in.
And, hey, leaders, you don'thave to do it alone because our
own government affairs team hereat MGMA is here to help you stay
ahead of what's coming. So theyanalyze the legislative
(02:23):
landscape. They advocate for ourmembers, and they offer you the
tools and updates you need tomake informed decisions. So you
can visit them on our website atmgma.com/government to learn
more and get involved. Becauseleadership in healthcare doesn't
just stop at the clinic door.
It really needs to extend allthe way to the policy making
(02:44):
table. Okay, Daniel. Over toyou.
Daniel Williams (02:47):
Thanks so much for that, Colleen. And I just
wanted to throw one other thingin about our government affairs
team. They are leading anupcoming webinar. It's gonna be
July 22. As with all of ourwebinars, it's at 1PM eastern
time.
It is the 2025 Washington policymid year update. They have a lot
(03:10):
of ground to cover. They'regonna do that in an hour. And
those are our most widelyattended webinars. And I would
think right now with all of thechanges that are going on in
health care with CMS, withMedicare, Medicaid, everything
else that's out there, this willbe huge.
So strongly urge you to attendthat. We'll put a direct link to
(03:33):
it, but you can gomgma.com/webinars, or we'll just
give you a direct link to thisparticular webinar that's coming
up again July 22. All right. Solet's turn the page to our next
story. And for this next one,we're looking at what's going on
(03:53):
with rural hospitals.
Now Becker's Hospital Review iscalling something that's going
on with rural hospitals now aperfect storm. There are many
challenges that are pushing manyof these facilities to the
brink. The article lays out themultiple pressures hitting rural
hospitals all at once. Here theyare: worsening staffing
(04:16):
shortages, financialinstability, and aging, often
sicker patient population. Morethan 140 rural hospitals have
closed since 2010, and over 600more are at risk of closing in
the near future.
This is according to the Centerfor Healthcare Quality and
(04:36):
Payment Reform. And theconsequences go far beyond
healthcare. As Harold Miller,President and CEO of that center
put it, When a rural hospitalcloses, the community often
loses its biggest employer andresidents have to drive an hour
or more to get basic care. Thathas a domino effect, not just
(04:58):
for patients, but for the localeconomy and the workforce.
There's also the issue of outmigration.
Rural patients traveling tolarger systems for care, taking
their insurance dollars withthem. This weakens the financial
foundation of their hometownhospitals, many of which are
already operating in the red.Becker's also highlights how
(05:22):
some hospitals are adapting.They're expanding telehealth.
They're pursuing mergers oraffiliations with larger
systems.
And they're seeking support fromnew Federal programs like the
Rural Emergency Hospitaldesignation. This designation
offers monthly facility paymentsto help keep doors open. But the
takeaway is clear (05:45):
these solutions need to scale quickly.
The rural health care system isat a tipping point, And unless
we see some meaningful systemicsupport, these communities could
lose access to essential care.With all that said, Colleen, I'm
gonna turn it over to you.
Colleen Luckett (06:05):
Yeah. Let's get to some MGMA stat polling. So
this week's poll gets right tothe heart of what many of you
are navigating right now, thesharp rise in operating expenses
for medical groups. So our July8 poll revealed that average
year to date operating expensesare up about 11% in 2025
(06:25):
compared to 2024. And while allcosts are rising, labor was
cited by nearly two thirds ofyou, 65% as the biggest driver
of those increases.
And that was followed bysupplies, technology,
facilities, and then some othervarious categories. So a few
highlights from the pollregarding labor from phased
(06:47):
retirement nurses to in house RNfellowships. Staffing
innovations are essential acrossspecialties. Regarding supplies,
leaders are eyeing biosimilars,vendor managed inventory, and
GPO consolidation to managevolatility. With technology,
security mandates and AIadoption are pushing spending
(07:08):
higher.
Risk assessments can offerinsure insurer credits as short
term relief. And then withfacilities, subleasing energy
saving upgrades, and in somecases, sale leasebacks can help
free up capital in the long run.So the big takeaway for MGMA
members, this article we havecovering this step poll, it's
(07:29):
loaded with practical insightsfor you. Looking to balance your
immediate cost relief with longterm strategic thinking, whether
you manage a single specialtygroup or a multi specialty
enterprise, there is somethingin here you can act on today,
promise, while planning for yourtomorrow. So you can read that
full article on our website atmgma.com/stats, or we'll drop
(07:51):
it, of course, in the show notesas we usually do.
And then we have some relatedresources if you haven't checked
it out yet. Our cybersecurityand medical practices playbook
can help your practice stayprepared for those issues. And
as always, if you want yourvoice to help shape insights
like these, join the MGMA statpoll by texting stat, s t a t,
(08:13):
to 33550. And you'll get allthose poll questions in your
text messages weekly. Daniel,back to you.
Daniel Williams (08:20):
Alright. Thanks for that, Colleen. So for our
next story, we're talking aboutsomething that doesn't always
come up in day to day practiceoperations, but probably should,
real estate. I've made nosecret. I've mentioned it here
before.
I spent eight years of my lifecovering commercial real estate
in Southern California, and sothese stories really get my
(08:40):
attention. So when I saw thispiece in medical economics, I
paid attention. In this article,they pose a simple but critical
question, Does your real estatesupport the growth plans of your
private practice? And the answerfor a lot of practices out there
might be, Not really. Thearticle breaks down why the
space you're in, whether it'sleased or owned, can either be a
(09:03):
launch pad for growth or abottleneck that holds you back.
One stat that stood out, up to40% of independent practices are
considering a move or a leaserenegotiation in the next year
and a half. That is a hugenumber, and it speaks to how
real estate decisions aregetting reevaluated post COVID,
(09:26):
especially as more practiceslook to expand services or bring
in new providers. The author ofthis article, Matt Corson, makes
the point that it's not justabout size, it's about
flexibility and alignment withstrategy. He says, It's not
uncommon for a practice to signa lease years ago that no longer
(09:48):
matches the direction they'reheaded. Maybe you've added a new
service line or maybe patientvolume has increased, but the
physical space hasn't kept up.
There's also a key financialpiece here. Many practices are
in what's called triple netleases, meaning you're on the
hook for taxes, insurance, andmaintenance in addition to rent.
(10:11):
That can erode margins fast ifyou're not watching closely. And
if you're in a building owned bya hospital or health system, you
might not have the flexibilityto grow on your own terms or
even stay put long term if yourgoals diverge from theirs.
Corson suggests conducting areal estate audit, basically
(10:33):
taking stock of where you arenow, what your lease terms look
like, when they expire, and whatyour actual space needs are over
the next five years.
Because real estate isn't justabout square footage, it's a
business decision. Are you nearreferral sources? Are you easy
to access? Are you paying toomuch for a space that isn't
(10:55):
actually serving your needs? Sothe takeaway here is don't wait
until space limitations arehurting patient flow or staff
morale.
Get ahead of it. Your buildingshould support your practice,
not the other way around.Colleen, what's our next story?
Colleen Luckett (11:13):
Indeed. What's next? That's actually the big
question on the minds of ourmedical practice leaders and all
of us. And it's also the titleof our brand new July issue of
MGMA Connection Magazine. Thismonth's issue builds off the
conversations we had at the MGMAFocus Private Practice
Conference in Minneapolis, wherethe release of our state of
(11:34):
private medical practice 2025report hit a nerve.
Leaders across the board echoeda common frustration. You can't
solve turnover without payingmore, and you can't keep paying
more without rethinking how yourpractice grows, staffs, and
sustains itself long term. Inhis letter from the editor, our
own Chris Harrop sums it up, thefuture of private practice isn't
(11:58):
just a financial operationalissue. It's a policy issue, a
workforce issue, a leadershipissue, and a story about how
innovation, autonomy, andcommunity based care can still
shape health care from theground up. This issue dives into
creative staffing and hybridteam models, the impact of
burnout and early retirements onleadership pipelines, the need
(12:20):
for practice leaders to engagewith policymakers as we talked
about today, and the bold stepspractices are taking to preserve
autonomy without burning outtheir teams.
So what's the big takeaway foryou all? Whether you're focused
on compensation, successionplanning, or care delivery
redesign, the July NGMAConnection issue offers insight
(12:40):
and inspiration, we hope, tohelp you move from survival to
strategy. So check out the issuenow at mgma.com/connection. And,
hey, let us know what sparksyour next idea. And that's a
wrap for me today, Daniel.
Back to you.
Daniel Williams (12:56):
Alright. That is gonna do it for this episode
of MGMA's Week in Reviewpodcast. Boy, this was an
episode chock full of reallyimportant information and just
wanted to highlight again someof the information in there,
particularly that governmentaffairs upcoming webinar. We
will be sure and put thatinformation in the episode's
(13:18):
show notes for July 22. There'sgonna be a lot of great
information in there.
So until then, I hope you allhave wonderful weekends, and
we'll see you again next week.
Colleen Luckett (13:29):
Hang in there, everyone. See you next week.
Hi, everyone, and welcome to the MGMA Week in
Review podcast. Daniel Williamshere along with Colleen Luckett.
We are editors and writers atMGMA and host of the MGMA Week
in Review podcast, where eachepisode, we bring you the latest
health care industry news,policy updates, expert insights,
(00:26):
and then the stories we findinteresting out in the field of
health care and medicalpractices. So with that in mind,
Colleen, what is going on inyour world?
Colleen Luckett (00:36):
Hey, everyone. This next one may not directly
match your job title, but Iwanted to share it because it
highlights something we're allstruggling with, the growing
urgency for healthcare leadersto engage in policy and
advocacy. In a new healthleaders article titled A CNO
Guide to Participating in Policyand Advocacy, editor G. Hatfield
(00:57):
highlights why nurse leaders,especially chief nursing
officers, need to engage inhealth care policy now more than
ever. The article recaps thisrecent webinar called The
Winning Edge for AdvancingNursing Advocacy and
Legislation, featuring nursingleaders from UW Health, Denver
Health, and the AmericanHospital Association.
(01:18):
Panelists tackled some of themost pressing legislative issues
affecting nurses today fromskyrocketing rates of workplace
violence to Medicaid rollbacksunder the one big beautiful bill
act, I guess they're calling it,OBA, which could severely impact
rural hospitals and vulnerablepatients. They emphasized that
(01:39):
CNOs should track legislation ontelehealth, APRNs, staffing
ratios, and even childcare,build relationships with
legislators and hospitalassociations, and use a
combination of data andstorytelling to drive policy
change. So what's the takeawayfor MGMA members? These nursing
advocacy efforts touch everycorner of medical practice
(02:01):
leadership affecting staffing,safety, compensation models, and
access to care. So even if youdon't have nurse in your title,
these policies shape theenvironment you operate in.
And, hey, leaders, you don'thave to do it alone because our
own government affairs team hereat MGMA is here to help you stay
ahead of what's coming. So theyanalyze the legislative
(02:23):
landscape. They advocate for ourmembers, and they offer you the
tools and updates you need tomake informed decisions. So you
can visit them on our website atmgma.com/government to learn
more and get involved. Becauseleadership in healthcare doesn't
just stop at the clinic door.
It really needs to extend allthe way to the policy making
(02:44):
table. Okay, Daniel. Over toyou.
Daniel Williams (02:47):
Thanks so much for that, Colleen. And I just
wanted to throw one other thingin about our government affairs
team. They are leading anupcoming webinar. It's gonna be
July 22. As with all of ourwebinars, it's at 1PM eastern
time.
It is the 2025 Washington policymid year update. They have a lot
(03:10):
of ground to cover. They'regonna do that in an hour. And
those are our most widelyattended webinars. And I would
think right now with all of thechanges that are going on in
health care with CMS, withMedicare, Medicaid, everything
else that's out there, this willbe huge.
So strongly urge you to attendthat. We'll put a direct link to
(03:33):
it, but you can gomgma.com/webinars, or we'll just
give you a direct link to thisparticular webinar that's coming
up again July 22. All right. Solet's turn the page to our next
story. And for this next one,we're looking at what's going on
(03:53):
with rural hospitals.
Now Becker's Hospital Review iscalling something that's going
on with rural hospitals now aperfect storm. There are many
challenges that are pushing manyof these facilities to the
brink. The article lays out themultiple pressures hitting rural
hospitals all at once. Here theyare: worsening staffing
(04:16):
shortages, financialinstability, and aging, often
sicker patient population. Morethan 140 rural hospitals have
closed since 2010, and over 600more are at risk of closing in
the near future.
This is according to the Centerfor Healthcare Quality and
(04:36):
Payment Reform. And theconsequences go far beyond
healthcare. As Harold Miller,President and CEO of that center
put it, When a rural hospitalcloses, the community often
loses its biggest employer andresidents have to drive an hour
or more to get basic care. Thathas a domino effect, not just
(04:58):
for patients, but for the localeconomy and the workforce.
There's also the issue of outmigration.
Rural patients traveling tolarger systems for care, taking
their insurance dollars withthem. This weakens the financial
foundation of their hometownhospitals, many of which are
already operating in the red.Becker's also highlights how
(05:22):
some hospitals are adapting.They're expanding telehealth.
They're pursuing mergers oraffiliations with larger
systems.
And they're seeking support fromnew Federal programs like the
Rural Emergency Hospitaldesignation. This designation
offers monthly facility paymentsto help keep doors open. But the
takeaway is clear (05:45):
these solutions need to scale quickly.
The rural health care system isat a tipping point, And unless
we see some meaningful systemicsupport, these communities could
lose access to essential care.With all that said, Colleen, I'm
gonna turn it over to you.
Colleen Luckett (06:05):
Yeah. Let's get to some MGMA stat polling. So
this week's poll gets right tothe heart of what many of you
are navigating right now, thesharp rise in operating expenses
for medical groups. So our July8 poll revealed that average
year to date operating expensesare up about 11% in 2025
(06:25):
compared to 2024. And while allcosts are rising, labor was
cited by nearly two thirds ofyou, 65% as the biggest driver
of those increases.
And that was followed bysupplies, technology,
facilities, and then some othervarious categories. So a few
highlights from the pollregarding labor from phased
(06:47):
retirement nurses to in house RNfellowships. Staffing
innovations are essential acrossspecialties. Regarding supplies,
leaders are eyeing biosimilars,vendor managed inventory, and
GPO consolidation to managevolatility. With technology,
security mandates and AIadoption are pushing spending
(07:08):
higher.
Risk assessments can offerinsure insurer credits as short
term relief. And then withfacilities, subleasing energy
saving upgrades, and in somecases, sale leasebacks can help
free up capital in the long run.So the big takeaway for MGMA
members, this article we havecovering this step poll, it's
(07:29):
loaded with practical insightsfor you. Looking to balance your
immediate cost relief with longterm strategic thinking, whether
you manage a single specialtygroup or a multi specialty
enterprise, there is somethingin here you can act on today,
promise, while planning for yourtomorrow. So you can read that
full article on our website atmgma.com/stats, or we'll drop
(07:51):
it, of course, in the show notesas we usually do.
And then we have some relatedresources if you haven't checked
it out yet. Our cybersecurityand medical practices playbook
can help your practice stayprepared for those issues. And
as always, if you want yourvoice to help shape insights
like these, join the MGMA statpoll by texting stat, s t a t,
(08:13):
to 33550. And you'll get allthose poll questions in your
text messages weekly. Daniel,back to you.
Daniel Williams (08:20):
Alright. Thanks for that, Colleen. So for our
next story, we're talking aboutsomething that doesn't always
come up in day to day practiceoperations, but probably should,
real estate. I've made nosecret. I've mentioned it here
before.
I spent eight years of my lifecovering commercial real estate
in Southern California, and sothese stories really get my
(08:40):
attention. So when I saw thispiece in medical economics, I
paid attention. In this article,they pose a simple but critical
question, Does your real estatesupport the growth plans of your
private practice? And the answerfor a lot of practices out there
might be, Not really. Thearticle breaks down why the
space you're in, whether it'sleased or owned, can either be a
(09:03):
launch pad for growth or abottleneck that holds you back.
One stat that stood out, up to40% of independent practices are
considering a move or a leaserenegotiation in the next year
and a half. That is a hugenumber, and it speaks to how
real estate decisions aregetting reevaluated post COVID,
(09:26):
especially as more practiceslook to expand services or bring
in new providers. The author ofthis article, Matt Corson, makes
the point that it's not justabout size, it's about
flexibility and alignment withstrategy. He says, It's not
uncommon for a practice to signa lease years ago that no longer
(09:48):
matches the direction they'reheaded. Maybe you've added a new
service line or maybe patientvolume has increased, but the
physical space hasn't kept up.
There's also a key financialpiece here. Many practices are
in what's called triple netleases, meaning you're on the
hook for taxes, insurance, andmaintenance in addition to rent.
(10:11):
That can erode margins fast ifyou're not watching closely. And
if you're in a building owned bya hospital or health system, you
might not have the flexibilityto grow on your own terms or
even stay put long term if yourgoals diverge from theirs.
Corson suggests conducting areal estate audit, basically
(10:33):
taking stock of where you arenow, what your lease terms look
like, when they expire, and whatyour actual space needs are over
the next five years.
Because real estate isn't justabout square footage, it's a
business decision. Are you nearreferral sources? Are you easy
to access? Are you paying toomuch for a space that isn't
(10:55):
actually serving your needs? Sothe takeaway here is don't wait
until space limitations arehurting patient flow or staff
morale.
Get ahead of it. Your buildingshould support your practice,
not the other way around.Colleen, what's our next story?
Colleen Luckett (11:13):
Indeed. What's next? That's actually the big
question on the minds of ourmedical practice leaders and all
of us. And it's also the titleof our brand new July issue of
MGMA Connection Magazine. Thismonth's issue builds off the
conversations we had at the MGMAFocus Private Practice
Conference in Minneapolis, wherethe release of our state of
(11:34):
private medical practice 2025report hit a nerve.
Leaders across the board echoeda common frustration. You can't
solve turnover without payingmore, and you can't keep paying
more without rethinking how yourpractice grows, staffs, and
sustains itself long term. Inhis letter from the editor, our
own Chris Harrop sums it up, thefuture of private practice isn't
(11:58):
just a financial operationalissue. It's a policy issue, a
workforce issue, a leadershipissue, and a story about how
innovation, autonomy, andcommunity based care can still
shape health care from theground up. This issue dives into
creative staffing and hybridteam models, the impact of
burnout and early retirements onleadership pipelines, the need
(12:20):
for practice leaders to engagewith policymakers as we talked
about today, and the bold stepspractices are taking to preserve
autonomy without burning outtheir teams.
So what's the big takeaway foryou all? Whether you're focused
on compensation, successionplanning, or care delivery
redesign, the July NGMAConnection issue offers insight
(12:40):
and inspiration, we hope, tohelp you move from survival to
strategy. So check out the issuenow at mgma.com/connection. And,
hey, let us know what sparksyour next idea. And that's a
wrap for me today, Daniel.
Back to you.
Daniel Williams (12:56):
Alright. That is gonna do it for this episode
of MGMA's Week in Reviewpodcast. Boy, this was an
episode chock full of reallyimportant information and just
wanted to highlight again someof the information in there,
particularly that governmentaffairs upcoming webinar. We
will be sure and put thatinformation in the episode's
(13:18):
show notes for July 22. There'sgonna be a lot of great
information in there.
So until then, I hope you allhave wonderful weekends, and
we'll see you again next week.
Colleen Luckett (13:29):
Hang in there, everyone. See you next week.
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