Your Doctor Might Not Be Doing As Well As You Think

The recent CNN article entitled Doctors Going Broke refers to physicians’ financial woes as an “embarrassing secret.” For those engrossed in health research, this is no secret; it’s a growing trend resulting from numerous poor policy decisions, particularly the increased healthcare regulation and constant reimbursement uncertainty.

The administrative burden of running a medical business has increased so substantially in recent years that small practices have struggled to keep up. The time and costs necessary to comply with massive healthcare regulations are better shouldered by the billing departments of huge health centers and hospitals than by individual docs and their administrative staff.  Many physicians have reacted to the changing environment by selling or consolidating their practices, but a significant number of those that haven’t done so are going broke. 

Uncertain reimbursements from the Medicare program make practicing medicine particularly challenging, in large and independent practices alike. While no one anticipates that Congress will allow the SGR to cut physician payment by 27.4%, there is still significant concern as to how Congress will enact a permanent fix. Furthermore, according to the article, certain specialties are particularly at risk. Reformed oncology drug reimbursement mechanisms are failing to cover many physicians’ costs, compromising their practices. The American Action Forum also cautioned against further reducing oncology drug reimbursements, a Supercommittee proposal which would have been devastating to oncologists.

While no one wants good doctors to go broke, the real issue is for patients who then have reduced access to care. If doctors are going out of business, particularly in rural or underserved areas, those patients will have an even more difficult time finding a physician. If reimbursements fall below the level at which a physician can sustain a business, fewer students will chose this profession. Scaling back unnecessary regulations and reforming the Medicare program to ensure that physicians can count on stable reimbursements are ways in which policy-makers can ensure that doctors don’t desert the practice of medicine.