Administrative costs are suffocating primary care. In the United States, 25% of all healthcare spending goes toward administrative overhead—far more than any other developed nation. For every dollar spent on patient care, a significant chunk is swallowed up by inefficient workflows, disconnected systems, and the sheer complexity of billing and compliance.
The consequences are dire. Small, independent practices—the lifeblood of patient-centered care—are being squeezed out of the market. Physicians, nurse practitioners, and other providers are drowning in paperwork, leading to burnout and, in many cases, abandoning independent practice altogether. But there’s hope. At InfinityC, we believe technology shouldn’t be a barrier to care—it should be the key to delivering it more effectively.
Here’s how we can help break the cycle.
Defining the Problem: Why Administrative Costs Are Out of Control
When I first started working as a nurse practitioner in a primary care office, I quickly realized how much time was being stolen by administrative tasks. Even as part of an established practice that was in the process of being acquired by Yale New Haven Health, the burden of managing complex billing systems, staying compliant with changing regulations, and navigating fragmented EHRs was overwhelming. The sheer amount of time spent on documentation left me wondering how providers in small, independent settings could ever manage.
For nurse practitioners considering opening their own practices, the barriers are even higher. States like Connecticut, Colorado, and New Mexico allow nurse practitioners to practice independently, but the financial and administrative hurdles often make it feel impossible. With $950 billion spent annually on administrative tasks in U.S. healthcare, it’s no wonder providers are driven to sell their practices to larger health systems.
Here are some key statistics that illustrate the problem:
- $950 billion annually is spent on administrative tasks, accounting for roughly a quarter of all healthcare expenditures.
- A primary care physician spends an average of two hours on administrative work for every one hour of patient care, according to the Annals of Internal Medicine. Nurse practitioners and other providers face similar challenges.
- Burnout rates among providers are at an all-time high, with 63% of physicians reporting burnout in 2023, much of it tied to documentation and administrative strain.
The fallout is clear. Nearly 70% of physicians are now employed by hospitals or health systems, while small practices struggle to compete. This consolidation increases costs for patients, with larger health systems often charging two to three times more for the same services compared to independent practices.
Whether it’s a PCP office trying to avoid being sold or a independent nurse practitioner considering opening their own practice, administrative inefficiencies are a barrier to entry and sustainability.
The Hidden Costs of Inefficiency
Let’s talk about what’s at stake when administrative inefficiencies go unchecked.
Imagine a patient arriving at an ER without a complete medical record. Maybe it’s an allergy that wasn’t documented, or a medication interaction that gets overlooked because the EHR systems don’t talk to each other. These gaps can cost lives. They also cost money—adverse drug events alone cost hospitals an average of $3,500 per incident, not to mention the legal and reputational damage.
For independent practices, the financial impact of inefficiency is just as harsh. Practices that rely on outdated or disjointed systems often face:
- Delayed reimbursements due to errors in claims processing.
- Missed revenue opportunities, as providers struggle to track and bill for all services rendered.
- Staffing inefficiencies, with administrative staff stretched thin across redundant tasks.
Every one of these issues eats into the already razor-thin margins of primary care practices, pushing more providers out of the space.
InfinityC: A Solution Built for Providers
At InfinityC, we’ve seen these challenges up close, and we’ve built our platform specifically to address them. Our goal is simple: reduce the administrative burden so providers can focus on what they do best – caring for patients. Here’s how:
1. Streamlined Workflows
InfinityC eliminates redundant tasks by integrating seamlessly with existing EHRs and automating processes like billing, scheduling, and compliance reporting. Providers spend less time clicking through screens and more time with their patients.
2. Real-Time Data Insights
With InfinityC, you’ll have access to actionable insights that help you identify gaps in care, optimize billing, and improve patient outcomes.
3. Transparent Cost Savings
Our platform reduces errors in claims processing, ensuring that practices get paid faster and more accurately. For independent practices, this means fewer financial headaches and more resources to invest in patient care.
4. Scalability for Growth
Whether you’re a solo practitioner or managing multiple clinic locations, InfinityC grows with you. Our tools are designed to support practices of all sizes, ensuring that no provider is left behind.
Why This Matters for Independent Practices
Independent practices deliver something that larger systems often can’t: personalized, patient-centered care. However, staying competitive in today’s healthcare landscape requires more than clinical expertise—it requires operational efficiency.
For many primary care offices, administrative inefficiencies are the tipping point that leads them to sell to large health systems. During my time in a PCP office that was eventually bought by Yale New Haven Health, I saw firsthand how these tasks—not patient care—were driving decisions about sustainability. While the acquisition may have brought stability to the practice, it also marked the end of what had once been a more intimate and locally focused approach to healthcare.
For nurse practitioners, the barriers are even greater. Despite full practice authority in states like Connecticut and New Mexico, opening a small, independent clinic feels out of reach for many due to the costs of managing billing, compliance, and administrative workflows. Without solutions to ease these burdens, the idea of starting an NP-led primary care clinic often remains just that—an idea.
This is where InfinityC makes a difference. By streamlining operations, automating billing processes, and reducing inefficiencies, InfinityC offers solutions to all providers involved:
- For PCP offices, InfinityC reduces the administrative workload, helping practices avoid the pressure to sell to large health systems.
- For nurse practitioners, InfinityC provides the tools necessary to build and sustain independent practices, making NP-led clinics a viable option.
In both cases, the result is more providers staying in the primary care space and delivering high-quality, accessible care to patients.
Join the Movement
At InfinityC, we believe in a future where primary care is accessible, efficient, and focused on the patient-provider relationship. We’re here to help you take back your time, reduce costs, and build a practice that works for you and your patients.
Ready to transform your practice? Reach out to us today to learn how we can help reduce administrative costs and empower your practice to focus on what matters most: patient care.
Sources:
https://www.usatoday.com/story/money/2024/12/28/why-american-health-care-costs-more/77264782007/
https://jamanetwork.com/journals/jama/fullarticle/2673148
https://www.acpjournals.org/doi/10.7326/M16-0961
https://www.medscape.com/slideshow/2023-lifestyle-burnout-6016058?reg=1#1