9 Leadership Demand In 2018, there will be a
growing awareness of the need for
versatile physicians to fill critical
leadership roles throughout the
A significant percentage of senior
physicians plan to retire within
the next few years. 3 In addition,
as value-based care increasingly
intertwines financial and clinical
operations, healthcare organiza-
tions will need doctors to assume
leadership at high levels. Together,
these trends are increasing the
demand for physician leadership
just as many experienced physi-
cians are leaving the profession.
While this situation is chal-
lenging, it also creates career
options for motivated physicians.
Farsighted group leaders should
begin working out a plan to accom-
modate this need. First, develop
a process for identifying and
cultivating promising physician
leaders. Second, create training
and development processes to help
new physician leaders succeed in
their new roles.
Transform and Thrive
These predictions will not impact all medical groups in the same way. Some
groups will see only gradual change in the coming months, while others will
experience 2018 as a year of transformation in care delivery, revenue generation, and overall strategy.
No matter where you fall in the spectrum, the next 12 months are an
opportunity to respond proactively to today’s key trends and position your
group to thrive for many years to come.
Marc Mertz, M.H. A., FACMPE, is a vice president with GE Healthcare Partners.
He speaks and writes frequently on medical group leadership, physician-hospital
alignment strategy, clinical integration, and physician compensation.
1. According to the MGMA 2017 Cost and Revenue
Report, the median total medical revenue per FTE
physician (multispecialty/all ownership types) is
$786,569. FFS median revenue was $638,799 (81.2%)
and capitation median was $52,613 ( 6.6%). This
suggests that a majority of physician group revenue
is still FFS.
2. Federal Trade Commission. 2007. Greater Rochester
Independent Practice Association Advisory Opinion,
September 17, 2007. Page 8. Accessed November
29, 2017 at ftc.gov/sites/default/files/documents/
3. The Physicians Foundation. 2016. 2016 Survey
of America’s Physicians: Practice Patterns and
Perspectives. Accessed November 29, 2017 at