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.
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.
A private practice is like a small business. “The only thing different is that a third party, and not the customer, is paying for the service,” said Lion. ”Many times I shake my head,” he said. “Doctors are trained in medicine but not how to run a business. On average, there’s a 10% to 15% profit leak in a private practice,” he said. Much of that is tied to money owed to the practice by patients or insurers. But he’s planning a new strategy to deal with his rising business expenses and falling reimbursements.
“I will see more patients, but I won’t check all of their complaints at one time,” he explained. “If I do, insurance will bundle my reimbursement into one payment.” Patients will have to make repeat visits — an arrangement that he acknowledges is “inconvenient.”
“This system pits doctor against patient,” he said. “But it’s the only way to beat the system and get paid.”
Source: CNN
Image: KSAT
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