• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
  • Blog
  • Free Resources
RevistaMed

RevistaMed

  • About
    • Meet Revista
    • Advisory Board
    • Partners
    • Press
    • Rising Leaders Council
    • Sponsorship
    • Contact Us
  • Events
  • Why Subscribe?
    • Featured Products
    • Business Development
    • Underwriting & Due Diligence
    • Asset Management
    • Capital Markets
    • Site Selection & Development
    • Leasing
  • Subscriber Login
Home / Leasing/Property Management / Physician Services PPI Not Following Inflation….yet

Physician Services PPI Not Following Inflation….yet

June 23, 2022 by Hilda Martin Topics: Leasing/Property Management, Real Estate Financing/Capital Markets

The Producer Price Index (PPI), which measures change in the prices paid to US producers of goods and services, continues to reflect the intense inflation being seen across many industries. For healthcare services and physician care, the PPI has yet to show much of a blip. Annual change for all goods and services remains high at 10.8% while physician services slowed to .6% from a year ago. For reference, the PPI for physician care encompasses Medicare, Medicaid, private insurance and all other patients. Insurance reimbursement rates are typically negotiated once per year and these new rates go into effect in January. Looking at the annual index changes, this is reflected as the biggest jumps are almost always in the month of January. So while inflation has climbed to record levels this year and we now know it is not transitory, insurance rates for the year have already been set. Throughout this year, the cost for basic supplies, salaries and rent are increasing, but physician payment for services is not. This is very likely causing financial pressure physician practices. Once new rates are negotiated and go into effect in January, assuming they go up more aggressively, those practices may find it easier to cover their costs – including rent and rent bumps. Stay tuned to Revista to see how this impacts trends moving forward!

Producer Price Index over the past year
Source: Bureau of Labor Statistics, www.bls.gov
Hilda Martin
Hilda Martin

Other Articles by Hilda Martin:

    • Strong Fundamentals in Florida Markets
    • Medical Office Rent Growth Accelerates
    • MOB Transaction Volume Cools in 4Q, Cap Rates Creep Up

Previous Post:Inflationary Pressures Impacting the Revista MOB Industry Fundamentals Report
Next Post:MOB Construction OutlookTop 125 Metro Trends

Sidebar

Topics

  • Construction/Development
  • Industry News
  • Leasing/Property Management
  • Mergers/Acquisitions
  • Policy/Legislation
  • Real Estate Financing/Capital Markets
  • Revista Best Practices
  • Revista News
  • Sponsor Spotlight
  • Transactions
  • Uncategorized

Recent Posts

  • Construction Slows in 1Q23
  • Strong Fundamentals in Florida Markets
  • Medical Office Rent Growth Accelerates
  • Alternative Asset Sales Activity
  • MOB Transaction Volume Cools in 4Q, Cap Rates Creep Up

Archives

Upcoming Events

  • There are no upcoming events.

Other Free Resources

Industry Directory

Search for and/or list your medical real estate services in Revista’s medical real estate directory.

Reports & White Papers

Download free reports & white papers on medical real estate.

Add Lease/Sale Listing

Revista provides free lease/sale listings for healthcare real estate.

Ready to Schedule a Demo?

Get in Touch Now
  • Why Subscribe?
  • Events
  • The MOB Scene
  • Add A Directory Listing
  • Add Lease/Sale Listing
  • Contact Us
  • Sponsorship
  • About
  • Terms of Use
  • Press

SIGN UP FOR MOB SCENE NEWSLETTER

  • Twitter
  • Facebook
  • LinkedIn