|
|
|
|
Publications
Health Reform Could Pull Plug on Doctors, Hospitals
John D. Fanburg
What will health care reform mean to us in New Jersey? Although reform may expand health care insurance for many Americans – a laudable goal that I support – my fear is that when health care services are needed, the health care providers – hospital and physicians alike – will not be here for us because they will not be capable of operating at a financial level necessary to cover their costs of providing health care services.
It is hard to argue against providing health insurance for as many Americans as possible. When discussing who will pay for the insurance coverage, much has been said about using taxes and shifting some of the costs to health insurers. However, a key component in this debate that does not get much press is the financial pressure that will ultimately be placed on hospitals and physicians.
When I was in high school, the smartest kids in math and the sciences went to medical school. It was not coincidental that the medical profession also offered a secure financial future. Who would blame them? The many years of required medical education, coupled with its costs, should lead to a secure standard of living. But health care reform threatens that security; health care reform requires reduced costs, which means reducing reimbursement to the health care provider.
The new Medicare fee schedule, implemented January 1, resulted in an average reimbursement reduction to physicians of more than 20 percent. Since the Medicare program typically sets the standard for reimbursement for other insurers, reimbursement for our physicians will drop across the board.
For example, the Medicare payment reduction in cardiology results in income drops of approximately 25 percent – 30 percent depending upon a cardiologist's specific practice areas. Many cardiologists surveyed have indicated they will have little choice but to reduce staff, limit offices and, in many cases, will have to drop out of the Medicare program altogether.
Anesthesiology is another hard-hit specialty. In 2009, Medicare reimbursement was only 30 percent of an anesthesiologist's typical fee schedule, while other specialties receive approximately 70 percent of their normal fee schedule. Further reductions here will likely cause the already limited pool of anesthesiologists to shrink further.
Since 2000, 19 hospitals in New Jersey have closed their doors. Six of those filed for bankruptcy. Some, perhaps, were mismanaged, while others may have been superfluous in light of other alternatives. But many more hospitals will likely shutter their doors under health care reform. Of those hospitals that continue to operate, many will struggle to pay for such necessities as nursing care and the high-tech equipment New Jersey citizens demand. Many physicians will decided, too, that the malpractice premiums they pay, coupled with the intrusions of insurance companies, and the escalating costs associated with rent, salaries and supplies, make it no longer worth their while to continue to practice medicine.
In my view, there is absolutely no attention being paid to determine what impact health care reform will have on New Jersey's physicians and hospitals. When it comes to health care, if you or a family member has a health need or concern, you will do whatever you can to seek out quality care. The problem is that those physicians and hospitals may not be here when we need them most.
|
|
© COPYRIGHT 2012 .
BRACH EICHLER L.L.C.
101 EISENHOWER PARKWAY,
ROSELAND, NJ 07068
(973) 228-5700
|
|
|