Economic analysis of family practice residency programs: a report from the Northeastern Ohio Network

The financial impact of a family practice residency program on a sponsoring institution is poorly understood. This study intended to describe as fully as possible all the expenses and revenues from five community-based family practice residency programs in northeastern Ohio.

Direct and indirect expenses, revenues, and demographics were evaluated for 1992. Similarities and differences among the participating programs were examined.

Overall expenses per resident were similar in all five programs, with a range from $162,000 to $203,000. Revenues reflected the number of residents in the program, although collection ratios varied. Inpatient collections ranged from 53%-76% and outpatient collections ranged from 60%-76%. An average of 30% of graduates from the past 10 years were on the active medical staff of their sponsoring institution, with a range of 21%-36%.

Based on the expenses, revenues collected, and reasonable assumptions made about cost of care in the hospital setting, the family practice residencies are probably a break-even operation, excluding the benefit of providing primary care physicians to the community.