Physician extenders expand practice profits

If your practice is considering adding physician extenders, such as physician assistants, expect to encounter increased costs, as well as increased productivity and efficiency, according to the results of a study by the American Medical Association’s Center for Health Policy Research.

Because of the increased productivity and efficiency these nonphysician practitioners (NPPs) can bring to the practice, physicians in solo and group practices employing NPPs increase their net income by an average 18%, estimates the AMA (see chart on p. 165).

With an average salary of $55,000 to $60,000 for physician assistants, "employment of NPPs raises practice costs, but the resulting increased efficiency may reduce per unit costs or the price of services," says the AMA.

Indeed, another study by the Medical Group Management Association found that the salary of a typical physician assistant only consumes 29.9% of their related patient billings. In comparison, salaries as a percentage of revenue are 34.3% for podiatrists, 35.1% for OB/GYNs, and 42.9% for internists.