MGMA Report Reveals Significant Increase in Regulatory Burden on Medical Practices

Prior authorization once again tops list as most burdensome

WASHINGTON, Oct. 12, 2022 /PRNewswire/ -- The Medical Group Management Association (MGMA) has released its 2022 Annual Regulatory Burden Report. With responses from over 500 medical group practices, survey findings included within the report reveal the true and significant impact of federal regulations on the U.S. healthcare system. MGMA's Government Affairs team utilizes this critical data to inform Congress and the Administration about the obstacles faced by medical practices to delivering high-quality patient care.

An overwhelming majority (89%) of respondents reported that the overall regulatory burden on their medical practice has increased over the past 12 months. Even more respondents (97%) agreed a reduction in regulatory burden would allow their practice to reallocate resources toward patient care. Prior authorization requirements once again ranked as the top burden for medical practices, with requirements stemming from the No Surprises Act and Medicare's Quality Payment Program coming in second and third.

"In a time of runaway inflation and unprecedented workforce shortages, the federal government is layering on additional regulatory burdens that, while in theory are beneficial to patients, act more as an impediment to delivering care. From longstanding challenges associated with the Quality Payment Program, to new obstacles related to the No Surprises Act, it is evident that policymakers must consider the totality of these burdens and their ultimate impact on patient care," said Anders Gilberg, SVP of Government Affairs at MGMA.

Medical groups continue to face growing challenges with prior authorization, including delays in prior authorization decisions, inconsistent payer payment policies, and processing prior authorizations for routinely approved items and services. A staggering 89% of respondents stated that their practice had to hire or redistribute staff to work on prior authorizations due to the increase in requests.

"The increase in prior authorization requirements year after year is simply unsustainable," said Gilberg. "Practices are being forced to divert resources away from delivering care to contend with these onerous and ever-changing requirements. It is time that Congress acts to put commonsense guardrails around prior authorization programs. We urge the expedient passage of the Improving Seniors' Timely Access to Care Act before the end of this year."

The full 2022 Annual Regulatory Burden Report may be viewed here.

Founded in 1926, the Medical Group Management Association (MGMA) is the nation's largest association focused on the business of medical practice management. MGMA consists of 15,000 group medical practices ranging from small private medical practices to large national health systems representing more than 350,000 physicians. MGMA helps nearly 60,000 medical practice leaders and the healthcare community solve the business challenges of running practices so that they can focus on providing outstanding patient care. Specifically, MGMA helps its members innovate and improve profitability and financial sustainability, and it provides the gold standard on industry benchmarks such as physician compensation. The association also advocates extensively on its members' behalf on national regulatory and policy issues. To learn more, go to mgma.com or follow us on LinkedIn, Twitter, and Facebook.

Media Contact:
Emily Dowsett
Associate Director, Public Affairs
703-376-1134
[email protected]

SOURCE Medical Group Management Association