Physician practices are preparing for an 8.42 percent drop in Medicare payment rates next year because of the proposed 4.42 percent reduction in the CMS conversion factor and the 4 percent statutory Pay-As-You-Go sequester, which was implemented to offset congressional spending outside of healthcare.
In 2022, medical practices absorbed a 2 percent cut to CMS payment after the reintroduction of Medicare sequestration and have been combatting rising costs, staff shortages and record inflation, which hit a 21-year high of 9.1 percent this summer, Becker’s reports.
According to a Medical Group Management Association survey, 92 percent of medical group practices reported that the current Medicare rates do not cover the cost of providing care.
Among the 517 medical groups surveyed, 58 percent are considering limiting the number of new Medicare patients; 66 percent are considering reducing charity care; 58 percent are considering reducing the number of clinical staff; and 29 percent are considering closing satellite locations. Read more.
