“Concerns Arise Over Future of Private Healthcare Practices”
Representative Greg Murphy (R-N.C.) is raising alarms about the potential dire consequences if steps are not taken to address the ongoing Medicare payment cuts impacting physicians. Murphy expressed apprehension that these cuts could jeopardize the viability of private healthcare practices. During The Hill’s “State of Medicare Physician Payments” event, Murphy emphasized the urgent need to address these challenges. Medicare reimbursement for doctors saw a reduction of 2.83 percent on January 1, marking the fifth consecutive year of cuts. Some argue that when factoring in inflation, the actual impact of the cut is even greater. Over the past years, these reductions have placed significant financial strain on medical practices while costs continue to rise. According to the American Medical Association, inflation-adjusted reimbursements for physicians have plummeted by 33 percent since 2001, while practice costs have surged by 59 percent during the same period. As a result, many physicians are finding it increasingly difficult to maintain private practices separate from larger healthcare institutions.
Murphy, a practicing surgeon with his own private practice, emphasized the time and effort private practitioners invest in keeping their practices operational amid financial challenges. He highlighted the importance of retaining staff and managing costs to ensure the sustainability of private practices. The decline in private practice settings also has implications for patient care, as noted by Bruce Scott, a physician and president of the AMA. Murphy outlined potential measures to address the Medicare physician reimbursement cuts, such as reforming Medicare Advantage and streamlining administrative processes. He also reintroduced the Medicare Patient Access and Practice Stabilization Act, which aims to reverse the recent reimbursement cuts and provide an increase in pay for physicians. The bill, supported by bipartisan co-sponsors, has garnered optimism for passage before the federal funding deadline of March 14. Murphy remains hopeful that with bipartisan support, the bill will be enacted, providing much-needed relief to physicians facing financial uncertainties.
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