ENGLEWOOD, CO – Physician practices are responding to the uncertain reimbursement environment and the failure of Medicare physician payments to keep pace with the cost of delivering care, according to research conducted by the Medical Group Management Association.
A questionnaire answered by more than 1,000 group practice professionals using MGMA’s Legislative and Executive Advocacy Response Network (LEARN) found that physicians are reducing beneficiary access and making operational sacrifices due to Congress’ six-month adjustment of Medicare payments, the looming 10.6 percent cut scheduled for July 1 and an additional 5.4 percent cut to physician reimbursement scheduled for January 2009.
“For the first time, group practice professionals have confirmed our worst fears. We’re seeing a continuing, year-over-year failure to address the cost of providing care under Medicare and continuing financial instability that force group practices to limit beneficiary access,” said William F. Jessee, MD, president and CEO of MGMA. “The six-month adjustment to payments only served to create further uncertainty and administrative burden to practices already scrambling to shield themselves from additional payment cuts looming in 2009.”
A reported 24 percent of respondents indicated that as a result of the financial uncertainty, they were either limiting or not accepting new Medicare patients.
In anticipation of anticipated reimbursement cuts, 46 percent of respondents said they would have to stop accepting and/or limit the number of Medicare beneficiaries their practices treat.
According to the MGMA, more than half of responding practices also are considering reducing administrative and clinical staff and a majority said they would limit hiring for those positions. More than two-thirds of respondents said they would sacrifice or postpone information technology (IT) and equipment investments.
“Particularly disturbing is the effect the uncertainly and reimbursement shortfall is having on practices’ ability to invest in health IT and other tools to increase patient safety and quality,” Jessee said.
The MGMA is urging Congress to provide an 18-month payment increase to physicians who treat Medicare patients. The association says this would provide short-term financial stability as Medicare payment reform continues.
The American Medical Association has found similar results in surveys regarding physician access to Medicare patients and seniors.
The AMA’s “Member Connect Survey: Physicians’ reaction to the Medicare physician payment cuts,” conducted in 2007 with 8,955 respondents, indicates seniors will face reduced access to care.
Physicians were asked if they would limit the number of new and established Medicare patients they treat if Medicare cut payments by 10 percent in 2008 and about 40 percent by 2016. Sixty percent said they would limit the number of new Medicare patients if payments are cut by 10 percent, while 77 percent would limit care if the cuts are raised to 40 percent.