Independent physician practices are carrying administrative overhead that's quietly eroding their viability

The administrative burden of contracting, credentialing, prior authorization, and payer relations has grown to the point where it represents meaningful overhead — often without the scale to manage it efficiently.

The typical response: consolidate. Join a large group, affiliate with a health system, or sell to a PE-backed platform. All of those paths trade independence for administrative support.

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MDR
Hospital Margins Under Pressure

Costs are climbing faster than revenue can keep pace — and the latest data makes it clear this isn't a short-term blip. Labor, supply, and drug expenses are all rising well above inflation, with drug costs up double digits year-over-year. Median operating margins have slipped toward breakeven — and some systems have already dipped negative in early 2026.

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MDR
A hospital gained $12M in revenue in year one without adding staff. Here's the lever they pulled.

The typical pattern: enrollment teams are stretched thin, focused on the highest-dollar accounts, and using processes that haven't fundamentally changed in years. Thousands of patients who qualify for Medicaid or other financial assistance programs slip through without enrollment. That's revenue that was earned and never collected — and coverage gaps that mean patients delay or avoid care.

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MDR