Physician Practices NAICS 621111

Dec 1, 2025 - Accurate Coding Stabilizes Revenue

• Accurate coding has become one of the most reliable ways to stabilize physician practice cash flow but many high-value Current Procedural Terminology and Healthcare Common Procedure Coding System codes remain underused because staff haven’t built workflows to capture them, according to Physicians Practice. Smarter code utilization isn’t “upcoding,” but a way to ensure fair compensation for chronic care coordination, preventive screenings, remote monitoring, and higher-complexity visits that clinicians routinely provide. Common underused codes include 99214: Established patient visit, moderate complexity; 99406/99407: — Smoking and tobacco cessation counseling; and G0442: Annual alcohol misuse screening.
• Two new California laws formalize restrictions on medical practice management platforms operated by private equity groups and hedge funds and increase the state’s oversight of certain healthcare transactions. Transactions in other states may be impacted if similar legislation is passed in those jurisdictions. SB 351 prohibits private equity groups or hedge funds from engaging in certain matters of professional judgment with respect to physician or dental practices in the state, including dictating which diagnostic tests are ordered, determining the necessity of outside provider referrals or consultations, controlling how many patients a physician or dentist treats, and maintaining responsibility for a patient’s overall care. SB 351 carves out the following administrative functions that cannot be delegated to an unlicensed entity: Owning or determining the content of patient medical records. Selecting, hiring, or firing of providers when that decision relates to clinical competency or proficiency. Setting parameters on entrance into payer contracts. Setting parameters specific to clinical competency or proficiency in contractual relationships with outside providers that relate to the delivery of patient care. Decision-making regarding billing and coding practices. Approving the selection of medical equipment and supplies for the practice.

• Physicians in private practice often prefer their work culture over that of their employed physician colleagues, according to the Medical Group Management Association. Key reasons include a greater sense of autonomy, deeper patient relationships, and more personal connection to their work. Those attributes include special management complexities that make success challenging, however.
• Physician practice employment and average wages for nonsupervisory employees increased slightly during the first eight months of 2025, according to the US Bureau of Labor Statistics (BLS). Revenue for physician offices increased 5.1% year over year and 3.6% quarter over quarter in the second quarter of 2025, according to the US Census Bureau. The Producer Price Index for physician practices increased 1.21% year over year in September, according to the BLS.