Employed physician practices have long represented one of health systems’ most significant — and most closely watched — financial commitments.
New data from Strata Decision Technology, drawn from a survey of more than 1,900 hospital leaders, offers the latest read on where that investment stands. Overall, the expenses and investment per physician is increasing, but the net patient service revenue per physician is growing faster.
Here are eight takeaways from first quarter data:
1. Per-physician expenses increased nearly 8% in the first quarter compared to 2025, reaching almost $1.3 million.
2. Expenses per physician increased 7.7% for the first quarter over the previous quarter.
3. The most dramatic change was in the South and West, where total expenses per physician FTE jumped 11% year over year. The Midwest reported a 7% expense increase and Northwest reported 5% higher expenses.
4. Median investment per physician FTE increased 10% over the first quarter of 2025, reaching $391,974 on average.
5. In the Midwest, median investment per physician FTE declined 5% year over year for the quarter.
6. The median per physician FTE investment increased in all other regions:
- West: 3%
- South: 6%
- Northeast: 11%
7. Net patient service revenue per physician FTE increased 13% year over year in the first quarter to $879,588.
8. By region, physician practices reported the following net patient service revenue per physician FTE gains:
- Northeast: 21.2%
- West: 12.8%
- South: 12.1%
- Midwest: 8%
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