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October 07, 2022

Physicians Prepare for an 8.42% Cut in Medicare Payments – AMA Seeks Relief from Congress

Physicians face a looming 8.42% cut in Medicare payments next year, the expiration of certain bonuses under AAPMs and MIPS, and an overall increase in the cost to practice medicine. 

While the AMA and other associations advocate in a letter to Congress for measures to mitigate these financial cuts, it begs the broader question of the sustainability of the fee-for-service system in healthcare and the longevity of the independent physician group model. As the letter states, “The discrepancy between what it costs to run a physician practice and actual payment combined with the administrative and financial burden of participating in Medicare is incentivizing market consolidation.” Without a regulatory or market solution soon, physicians will likely continue to be drawn to consolidation, private equity investors, and early retirement

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