BAC Medical Marketing
  • Home
  • Who we are ▷
    • Mission statement
    • Meet the team
    • We attract new patients
    • More for less
  • What we do ▷
    • Services offered
    • IdentityFind
    • MEDShield
    • Project samples
  • How we work ▷
    • Workflow process
    • BACMM affiliate program
    • Clients
    • Glossary
  • Why we're different ▷
    • Search engine optimization
    • Case studies
    • Letter from the President
    • Spotlighted products
  • When we're needed ▷
    • Consultancy compensation
    • Marketing tips
    • BACMM Blog
    • FAQs
  • Contact ▷
    • News you can use
    • Testimonials
    • Online resources
    • Jobs at BACMM
Call Today: 800.240.9473

Doctors Going Broke

1/6/2012

2 Comments

 
Doctors in America are harboring an embarrassing secret: Many of them are going broke.

This quiet reality, which is spreading nationwide, is claiming a wide range of casualties, including family physicians, cardiologists and oncologists.

Industry watchers say the trend is worrisome. Half of all doctors in the nation operate a private practice. So if a cash crunch forces the death of an independent practice, it robs a community of a vital health care resource.

"A lot of independent practices are starting to see serious financial issues," said Marc Lion, CEO of Lion & Company CPAs, LLC, which advises independent doctor practices about their finances.

Doctors list shrinking insurance reimbursements, changing regulations, rising business and drug costs among the factors preventing them from keeping their practices afloat. But some experts counter that doctors' lack of business acumen is also to blame.

Dr. William Pentz, 47, a cardiologist with a Philadelphia private practice, and his partners had to tap into their personal assets to make payroll for employees last year. "And we still barely made payroll last paycheck," he said. "Many of us are also skimping on our own pay."

Pentz said recent steep 35% to 40% cuts in Medicare reimbursements for key cardiovascular services, such as stress tests and echocardiograms, have taken a substantial toll on revenue. "Our total revenue was down about 9% last year compared to 2010," he said.

"These cuts have destabilized private cardiology practices," he said. "A third of our patients are on Medicare. So these Medicare cuts are by far the biggest factor. Private insurers follow Medicare rates. So those reimbursements are going down as well."

Pentz is thinking about an out. "If this continues, I might seriously consider leaving medicine," he said. "I can't keep working this way."

Also on his mind, the impending 27.4% Medicare pay cut for doctors. "If that goes through, it will put us under," he said.

Federal law requires that Medicare reimbursement rates be adjusted annually based on a formula tied to the health of the economy. That law says rates should be cut every year to keep Medicare financially sound.

Although Congress has blocked those cuts from happening 13 times over the past decade, most recently on Dec. 23 with a two-month temporary "patch," this dilemma continues to haunt doctors every year.

Beau Donegan, senior executive with a hospital cancer center in Newport Beach, Calif., is well aware of physicians' financial woes.

"Many are too proud to admit that they are on the verge of bankruptcy," she said. "These physicians see no way out of the downward spiral of reimbursement, escalating costs of treating patients and insurance companies deciding when and how much they will pay them."

Donegan knows an oncologist "with a stellar reputation in the community" who hasn't taken a salary from his private practice in over a year. He owes drug companies $1.6 million, which he wasn't reimbursed for.

Dr. Neil Barth is that oncologist. He has been in the top 10% of oncologists in his region, according to U.S. News Top Doctors' ranking. Still, he is contemplating personal bankruptcy.

That move could shutter his 31-year-old clinical practice and force 6,000 cancer patients to look for a new doctor.

Changes in drug reimbursements have hurt him badly. Until the mid-2000's, drugs sales were big profit generators for oncologists.

In oncology, doctors were allowed to profit from drug sales. So doctors would buy expensive cancer drugs at bulk prices from drug makers and then sell them at much higher prices to their patients.

"I grew up in that system. I was spending $1.5 million a month on buying treatment drugs," he said. In 2005, Medicare revised the reimbursement guidelines for cancer drugs, which effectively made reimbursements for many expensive cancer drugs fall to less than the actual cost of the drugs.
2 Comments
plastic surgery sydney link
5/31/2012 08:52:33 pm

I think the drug and health care policy should be beneficial for all either drug maker, dealer and even for customers.The maximum use of drugs are in health care. if the medicine are banned and costly then it is not beneficial for all.

Reply
Best Anti Aging Product link
11/7/2013 03:33:48 pm

Your blog is very useful and provides tremendous facts. Keep up the good work.

Reply



Leave a Reply.

    Author

    Bruce A. Cadkin, MBA President                          BAC Medical Marketing

    Archives

    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011
    January 2011
    December 2010
    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    May 2010
    April 2010
    March 2010
    February 2010
    January 2010
    December 2009
    November 2009
    October 2009
    September 2009
    August 2009
    July 2009
    June 2009
    May 2009

    Categories

    All
    Advertising
    Affiliate Marketing
    Affiliate Program
    Anna Deavere Smith
    Avoiding Malpractice Suits
    Best Practices
    Blogs
    Branding
    Cash Only Medical Practice
    Concierge Medical Practice
    Crisalix Estetix
    Customer Service
    Defensive Medicine
    Dental Practice Marketing
    Developing Physician Leaders
    Electronic Medical Records
    Emwave Products
    Expert Panels
    Facts And Figures
    Gene Smart Wellness
    Going Dutch
    Gum Disease
    Healthcare Reform
    Heartmath
    Holiday Poems
    Ingenio Expert Advice
    Internet Marketing
    In The News
    Let Me Down Easy
    Liveperson Expert Advice
    Managing By The Numbers
    Marketing Momentum
    Marketing Strategies
    Martin Luther King
    Medical Marketing
    Medical Tourism
    Meta Tags
    Mobile Marketing
    Money Driven Medicine
    Most Influential Physicians
    Omega 3 Index
    Online Reviews
    Patient Advocate
    Patrick Soon-Shiong
    Physicians At Funerals
    Practice Advertising
    Prayer Over Treatment
    Pro Football Head Trauma
    Psychographics
    Public Relations
    Referral Marketing
    Search Engine Optimization
    Social Media Marketing
    Solution To Medicare
    Staff Training Programs
    Steve Jobs
    The Art Of Apology
    Top Medical
    Web Site Design
    Web Site Marketing

    Bookmark and Share

    RSS Feed

    Picture

    I'm an expert on Maven!

    Consult with me on Maven



    Zintro Expert
    zintro.com/expert/Marketing-Maven

    Ingenio Expert

    Picture
    Liveperson Expert

    Reuters Insight Expert

    Which of the following changes in your practice most accurately reflect your goal? (Check all that apply) I would like to...
     
    pollcode.com free polls
    YouTube
    Twitter
    Code Of Ethics
    Medical Blog Award
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Dosie Award
    Weblog Award
    AlleyDog Award
    Best Blog Contest Award
    Blogtrepreneur Award
    Top 100 Blog Award
    Blogger's Choice Award
    Blogger's Choice Award
    Blog Advertising - Advertise on blogs with SponsoredReviews.com
Powered by Create your own unique website with customizable templates.