Heathcare Reform In Another Form

Recent activity out of Washington may lead some of us to believe that Healthcare Reform and its impact on physicians, if passed, is in the distant future. Today, I learned the new Jobs Bill the President is pushing has tons of pork in it. One item is the impact on physicians accepting Medicare patients. Off as it may seem, one of the methods proposed to help pay for the Jobs Bill is a 20% reimbursement cut in Medicare payments to physicians. It seems that Congress and the President is hell-bent on cutting fees to physicians. And, if this Jobs Bill is passed this year, and it looks like it will, the reimbursement cuts will also happen this year. If I know Washington, somehow, they will make the cuts retroactive if they can.

So, what is your action? Physicians costs to provide care continue to rise, thus the only way to make up for the proposed cuts is to either:

• Cut you overhead, if possible, and that might mean people,
• Increase your patient capacity, thus stretching your fixed costs,
• Or dropping Medicare patients altogether.

In short, physicians are in a real dilemma. Depending on your specialty, you may choose any of the above. But have you done your due diligence in information gathering to make the best decision? Consider these actions:

• What plans make up the majority of your patient appointment slots?
• Which plans offer higher reimbursement, relative to Medicare?
• Which plans are quick to reimburse after you submit the claim?
• When are your current plans up for renegotiation or renewal?
• Does your patient demography allow you to no longer see patients in one plan while seeing more patients in another?

Answers to these questions can help you decide how to move forward with the business of you practice.

For more information or help, please feel free to contact Primoro, Inc.