Upgrading the service mix in primary care practices may increase revenue

Hospitals and health systems that own primary care physician networks want to optimize revenues when possible while still providing high-quality patient care. One way to accomplish this objective is to enhance the service mix for patients seen by the primary care practices. An analysis of the diagnosis and service mix of three primary care networks showed that the primary care practices mainly are involved with common acute and chronic conditions, which are associated with office visits that are paid at low- and mid-level rates. A comparison of the primary care networks' diagnosis and service mix with Medicare data on the mix of office visits for family practitioners, internists, and cardiologists showed, for example, that primary care physicians have more level 2 office visits and fewer level 4 office visits than cardiologists. By upgrading the patient office visits from the routine acute and chronic conditions associated with lower-level visits to more serious conditions associated with higher-level visits, primary care practices may increase total practice revenue.