Medicare cuts and its impact on Primary Care Practices

     According to information recently released by the American College of Physicians-American Society of Internal Medicine, the Medicare cuts of 2002-2005 may have portentous implications for doctors of internal medicine.  Reimbursement reductions would cost a solo practice $7, 884.60 and a typical four-physician practice $31, 538.00.  The 14% projected cut in Medicare payments would likely require practices to reduce key office staff, such as clerical personnel to do billing.

     Geriatrics could see an overall decline in income from $30,630.00 for a solo practice to $122, 520 for a four-physician practice.  A typical geriatric group practice would likely have to lay off three nurses, four billers, or six clerical workers, and/or a combination of staff.

     ACP-ASIM notes this analysis takes into account cuts in office visit payments only, not the cuts in many other Medicare services.  If other services are taken into account the impact will actually be greater.