Medicare’s Proposed Physician Fee Cut Could Lead to Some Hard Decisions (HealthLeaders)

Physicians are facing a 29% decrease in Medicare reimbursements from 2001 to 2024, with another 2.8% cut proposed for 2025. As healthcare organizations already grapple with rising labor and supply chain costs, these cuts are putting immense pressure on their revenue streams. Dr. Paul Pritchard, CMO of Prevea Health, warns that such reductions may force difficult decisions, including consolidation of services, clinic closures, and potential reduction of care in rural areas. These cuts are also driving the wave of mergers, acquisitions, and private equity involvement in healthcare as organizations seek financial stability. Could this trend reshape the future of patient care?