PRACTICE REVENUE AND COST DISTRIBUTION FOR OPHTHALMOLOGY, 1988 TO 1993

As ophthalmologists need to better manage their practices, information regarding distribution of practice costs becomes more relevant. In th is study, we compare revenues and costs from published sources to dete rmine changes over time and across surveys. We also evaluate the relia bility and validity of these statistics. Data were obtained from the H ealth Care Financing Administration (for 1988), the American Medical A ssociation (for 1988, 1990, 1992, and 1993), and the Medical Group Man agement Association (for 1988, 1990, 1992, and 1993) and were compared across years and surveys. We found large differences among the survey s in both dollar amounts and percentages of total revenue for some of the reported cost categories. Analysis of the data over time showed le ss of a decline in physician earnings than expected, although there we re large increases in the category ''other costs.'' We found considera ble divergence among the statistical results. Ophthalmologists, public policymakers, acid managed care organizations must exercise great cau tion in interpreting such data and in applying their findings to indiv idual ophthalmic practices and practitioners.