In a recent survey of medical practices representing 34,000 physicians, 39% of group practice administrators said they may be forced to limit the number of Medicare patients they see to remain financially solvent if a proposed 5.1% cut to physician reimbursement proposed in the 2007 Medicare physician fee schedule moves forward. Nineteen percent of respondents to the Medical Group Management Association’s survey said they would be forced to stop accepting new Medicare patients.
In addition, 67% said they would modify or eliminate health benefit coverage for their own employees and 39% said they would lay off clinical staff in 2007 as a result of the proposed cuts. “Congress needs to replace the flawed SGR formula immediately and provide increases that accurately reflect a practice’s cost of providing care,” said William Jessee, president and CEO of MGMA. According to 2006 MGMA cost survey data, the cost of operating a group practice increased 7% in 2005. Read the news release.
