Although most of us in medicine know the struggles of running a private practice, it is still disconcerting – albeit not surprising – to hear that some doctors are having to file for bankruptcy.
In an article on CNNMoney.com, some physicians talk about having to get business loans or use personal funds to keep their practices afloat. In some cases it is a matter of sudden changes in reimbursement policy, such as cuts in oncology pharmaceuticals; in others, it is the slow death of decreased revenue in the face of increasing costs.
For the rest of practices that are in a somewhat better situation, the annual drama in Washington DC over Medicare reimbursement has led to a paralysis in strategic planning of any kind. Doctors cannot plan for growth, for expansion, or for investment in new technology with the spectre of 30% fee cuts constantly looming over their heads.
About Peter Polack
It is so important to be having this conversation. There are far more articles on EMRs, ACOs, ICD 10, and HIPAA 5010 but not enough talk about what medical practices need to be focusing on in order to survive and actually have a chance to tackle these industry challenges. Getting back to the basics of good business management should also be a top priority in the healthcare debate. If not, soon all we will have are large hospital based systems. This will lead to worse outcomes and higher expenditures because hospitals are the source of many avoidable medical errors. And with their huge fixed assets and large staff, are a gigantic cost center for the health care industry.