Investment in medical groups plateaued in September for the first time since the COVID-19 pandemic, according to Kaufman Hall’s “Physician Flash Report” for the third quarter of 2025.
Kaufman Hall, a Vizient company, collected data from 200,000 employed providers across the U.S. and found the median investment / subsidy per provider hit $237,911 in the third quarter, a slight drop from $239,338 in the previous quarter. The investment / subsidy per provider metric reflects the net patient services revenue minus total expenses and divided by provider full-time equivalents.
The metric increased quarterly over the last few years, until the most recent quarter where the investment / subsidy per provider ranged from $141,371 to $325,634. But that doesn’t necessarily mean medical groups are being deprioritized.
“While the median subsidy last quarter held relatively flat, a closer look at the data shows that this trend is likely driven by higher performing practices that are better able to manage costs and grow revenue,” said Matthew Bates, managing director and physician enterprise service line leader with Kaufman Hall. “The differentiation between practice performance is significant and demonstrates that it is possible to strategically contain labor costs.”
The report also showed the advanced practice provider workforce is growing and there has been a “consistent shift to APPs across primary care and specialties.”
Additional performance metrics for the third quarter include:
- Net patient revenue per provider FTE: $403,972 (2% increase)
- Net patient revenue per provider wRVPU: $76.81 (1% increase)
- Provider wRVU per FTE: 5,062 (3% increase)
- Physician wRVU per FTE: 6,482 (5% increase)
- Total direct expense per provider FTE: $659,890 (3% increase)
- Physician compensation per FTE: $378,644 (3% increase)
- Provider compensation per wRVU: $62.93 (1% increase
- Support staff per 10k provider wRVUs: 3.00 (-2% decline)
