MGMA statement on potential impact of tariffs on medical groups (April 3, 2025)

FOR IMMEDIATE RELEASE:
April 3, 2025

Media Contact:
Emily Dowsett
Director, Policy Communications
edowsett@mgma.com
 

MGMA statement on potential impact of tariffs on medical groups

Anders Gilberg
Senior Vice President, Government Affairs
Medical Group Management Association

"For medical group practices, the implications of tariffs are simple dollars and cents. From basic supplies to life-saving medical devices, physician practices rely on a global supply chain, yet their ability to pass on increased costs is almost non-existent. Practice expense calculations in fee schedules within commercial contracts and government programs such as Medicare and Medicaid are already fixed and won't account for any cost increases resulting from new tariffs or taxes. Already reeling from recent Medicare reimbursement cuts and multiple years of post-COVID inflation, medical groups will be forced to absorb any increased costs to the detriment of their businesses and, ultimately, patients. While there may be longer-term goals in the Administration's trade strategy, if implemented as proposed, the potential consequences of tariff-induced cost increases may be severe, especially for medical practices struggling to keep their doors open in an already challenging healthcare environment.”

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About MGMA

Founded in 1926, the Medical Group Management Association (MGMA) is the nation's largest association focused on the business of medical practice management. MGMA consists of 15,000 group medical practices ranging from small private medical practices to large national health systems representing more than 350,000 physicians. MGMA helps nearly 60,000 medical practice leaders and the healthcare community solve the business challenges of running practices so that they can focus on providing outstanding patient care. Specifically, MGMA helps its members innovate and improve profitability and financial sustainability, and it provides the gold standard on industry benchmarks such as physician compensation. The association also advocates extensively on its members' behalf on national regulatory and policy issues.