Operating expenses continue to exceed revenue for many system-affiliated medical groups, with average expense ratios over 100%, according to the “AMGA 2025 Medical Group Operations and Finance Survey.”
The organization gathered data from 39 medical groups — 25 system-affiliated and 14 independent — encompassing more than 7,100 clinics and over 34,500 provider [full-time equivalents]. Key findings from the operations and finance survey, as well as AMGA’s companion “2025 Medical Group Compensation and Productivity Survey,” also include:
1. Compensation and other operating expenses are major cost drivers. AMGA’s compensation and productivity survey found average provider compensation increased 4.9% in the last year, with notable growth for primary care physicians and specialists.
2. Within system-affiliated medical groups, provider compensation and benefits accounted for 87% of net professional provider revenue in the operations and finance survey — up 6% from the prior survey period.
3. The 2025 operations and finance survey found the median operating expense ratio — inclusive of salaries, benefits and other operating costs — was 151% for system-affiliated organizations.
4. Since 2017, compensation for medical specialties has grown 27.7%, while net professional collections have increased only 11.3%, contributing to mounting financial pressure, AMGA said.
