I work for a company that provides technology services for healthcare practices, labs and hospitals. Late Wed morning we got notice from 2 mid-size practices that they were closing down completely and today we just got another. I know there were more than a few this year who have stated that they are holding out hope for an Obama defeat so I expect quite a few more. The physicians have had enough of the cuts in medicare and tax increases, it’s just not worth it to them to work anymore. Believe it or not, the margins aren’t huge for these places, especially the family practices. So far this week it looks like around 25 physicians and somewhere around 60-70 support staff have lost their jobs and we lost the clients. As this grows larger, we will be letting some people go as well. Christmas is not going to be pleasant this year, that’s for certain.
If people only knew the number of physicians who are cutting back or shutting down completely they’d be shocked. Right now most of the physicians I know are collecting less than 45% of what they bill out. Insurance companies have cut back their reinbursement and medicare is now cutting their by a third which will cut their reimbursement back to 40% or less. And the paperwork is tremendous.
What physician is going to work 70 hours a week, pay their staff, take call, pay malpractice insurance and then get paid 40% for what they do? With taxes their take home will be .25 or less cents on the dollar.