Physicians and advanced practice providers working more than ever before

Physicians and advanced practice providers (APPs) are doing more work than ever before, according to the quarterly Physician Flash Report from Kaufman Hall, a Vizient company. Physician and APP productivity, which is measured as units of work or work relative value units (wRVUs) per full-time employee, reached 6,449 for physicians and 5,030 for APPs in Q2 2025. This represents a 12% increase for physician productivity and 11% increase for APPs since Q2 2023.

Experts note that changes to the Medicare Physician Fee Schedule in 2021, which increased the way wRVUs are calculated for evaluation and management services, are no longer a factor in the growth of provider units of work.

"Increases in productivity metrics, coupled with higher compensation and expenses, reflect a reality that physicians and advanced practice providers are working more than ever before," said Matthew Bates, Managing Director and Physician Enterprise Service Line Leader with Kaufman Hall. "Revenue has increased because physicians and providers are working more, but the data also show that reimbursement is not keeping pace. In the coming months if more patients lose insurance coverage, this trend will likely get worse."

Medical support staff levels continued to fall in relation to the generation of wRVUs, a trend that Kaufman Hall experts have observed consistently since 2023. This reflects the ongoing hiring and retention challenges in the healthcare workforce. Experts caution that the lack of adequate medical support staffing could be a barrier to growth.

In June, hospitals' financial performance improved compared to the prior month, according to Kaufman Hall's latest National Hospital Flash Report. Revenue on a volume adjusted basis increased, as did outpatient revenue. Operating room minutes also rose in June.

"Higher performing hospitals are nimbler on both the revenue and expense sides," said Erik Swanson, Managing Director and Data and Analytics Group Leader with Kaufman Hall. "They may be expanding their outpatient footprint, diversifying services, or managing expenses like purchased services by centralizing some functions. They are also more likely to have value-based care or bundled care arrangements in place."

Hospital bad debt and charity care increased in June. Experts note that bad debt rose at a greater rate than in previous months, which may reflect a shift in the number of people enrolled in public insurance programs like Medicaid.

Kaufman Hall's National Hospital Flash Report draws on data from more than 1,300 hospitals from Strata Decision Technology, LLC. The Physician Flash Report draws on data based on more than 200,000 providers, also from Strata.

About Kaufman Hall, a Vizient Company

Kaufman Hall, a Vizient company, provides management consulting solutions to help society's foundational institutions realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods, rigorous analytics, and industry-leading solutions into their strategic planning and financial management processes, with a focus on achieving their most challenging goals.

Kaufman Hall services use a rigorous, disciplined, and structured approach that is based on the principles of corporate finance. The breadth and integration of Kaufman Hall advisory services are unparalleled, encompassing strategy; financial and capital planning; performance improvement; treasury and capital markets management; mergers, acquisitions, partnerships, and joint ventures; and real estate.

CONTACT: Toby Howard, (571) 201-7409, [email protected]