How Poor Payer Reimbursements are Effecting Practices During the COVID-19 Pandemic
It’s not uncommon for private practices to receive rates far below Medicare standards.
Most physicians who have been practicing for a few decades remember the days when private payer reimbursements dwarfed Medicare reimbursements.
That dynamic has long since flipped, starting with the 2008 recession. Reimbursements have been flat or have lost value from inflation, while practice costs have seen double-digit increases.
Meanwhile, hospitals and insurance-owned health networks have seen reimbursements increase to 300 percent or more of Medicare in some cases. For private practices, it’s not uncommon to receive rates far below Medicare standards. Many practices have seen their volumes decrease from 30 percent to up to 90 percent, and a significant number are closing their doors for now.
Here are three examples of how the COVID-19 Pandemic is affecting specialties across the nation: