MGMA's Andrew Swanson: Shrinking reimbursements demand tech-driven solutions

Shrinking reimbursements and rising costs are creating an “untenable squeeze” for physician practices, and success will depend on technology and collaboration, said Andrew Swanson, chief revenue officer of the Medical Group Management Association (MGMA).

Swanson spoke at MGMA’s Leaders Conference 2025 in Orlando, where thousands of practice leaders gathered to discuss financial sustainability, staffing and innovation.

Reimbursements down, costs up

Practices nationwide face declining revenue while overhead continues to climb.

“No doubt about it, it’s compressing reimbursement,” Swanson said. “Medicare rates are getting cut by 3.5% this year, private payers are following, uncompensated care is going up. The revenue just isn’t where it was, and with costs going up so much, it’s putting an untenable squeeze on things.”

MGMA’s focus: Efficiency through technology

Swanson said MGMA is highlighting solutions that help practices reduce overhead and operate more efficiently.

“We’re talking about systems that can augment staff or fill vacancies when positions can’t be filled,” he said. “The association is introducing things that are working for practices around the country to others who are feeling the squeeze.”

Technology, including artificial intelligence and workflow tools, can replace labor-intensive processes and help groups manage costs, he added.

Theme: “Next is Now”

The 2025 conference theme, “Next is Now,” emphasizes immediate action.

“The future is now. Now is the time to act,” Swanson said. “We want people to own the problems and challenges they have, look for solutions, and feel empowered to act.”

Staffing shortages and consumer expectations

Staffing shortages remain a top concern, but Swanson said practices must also adapt to digital-native patients.

“Ten years ago, we complained about people coming in with WebMD on their phones, but now that’s just the way it is,” he said. Practices that view patients through a consumer lens—offering convenience, engagement and trust—are finding success.

Leadership with humor

Swanson said leaders should not overlook levity.

“Nobody wants to say a leader should be fun, but finding humor and lightness in difficult situations helps,” he said. “When leaders bring humor and their whole selves to the table, good days and bad days become easier.”

Preparing for 2026 with technology

Looking ahead, Swanson said technology will be decisive.

“The success of practices is going to depend on it,” he said. “That combination of people and technology is what’s going to improve processes and help us serve more people, faster and at lower cost.”

Leaning on community

Despite the challenges, Swanson said he is optimistic.

“The stress in the industry is real, but there’s a way through,” he said. “The more we do this together, the more success we’ll find. Even when we struggle, we’ll have someone to struggle with, and that makes it easier. Then we can share in the success at the end, together.”