The United States is experiencing a crisis as small businesses across the nation are being compelled to pay higher prices for raw materials while their labor costs have increased to record levels. Simultaneously, consumers are witnessing the cost of essential commodities such as lodging, fuel and food rising at a rate that outpaces any increase in wages.
Adding to the complexity of the situation, the U.S. Bureau of Economic Analysis (BEA) has reported that certain mega-corporations are taking advantage of the nation’s inflationary environment to raise prices substantially, resulting in record profits.1
These trends are not confined to a particular sector; they cut across all industries. However, medical group leaders face unique difficulty as their organizations are caught between the rock of set payments and the hard place of increased costs, demonstrated by the latest MGMA DataDive Cost and Revenue reporting 2022 financial performance.