Je. Billi et al., FINANCIAL IMPACT OF THE MEDICARE FEE SCHEDULE ON A LARGE MULTISPECIALTY FACULTY PRACTICE IN AN ACADEMIC-MEDICAL-CENTER, Academic medicine, 68(5), 1993, pp. 315-322
Citations number
18
Categorie Soggetti
Medicine Miscellaneus","Education, Scientific Disciplines
Although there have been preliminary studies of the financial impact o
f the Medicare Fee Schedule (MFS) on specialty-specific groups of prac
ticing physicians in an academic setting, there has been no published
report of the financial impact of the MFS on an entire multispecialty
academic faculty practice. This 1992 study reports the estimated finan
cial impact of the MFS on the faculty practice at the University of Mi
chigan Medical School (UMMS). The authors calculated the difference be
tween the Medicare payments to be received when the MFS is completely
implemented in 1996 and the payments received in 1991, and then repeat
ed this process for each year of the transition period, 1992-1996. The
UMMS will experience a $1.2 million (-4.7%) loss under the fully impl
emented MFS. The medical departments project an 8% gain, while substan
tial losses are projected for the surgical departments (-10%) and hosp
ital-based departments (-15%). Projections indicate that obstetrics-gy
necology and ophthalmology will lose nearly 20% and that surgery will
lose 9%. But large percentage gains are projected for neurology (+43%)
, physical medicine (+25%), and family practice (+17%). Analysis of th
e MFS transition's effects shows an abrupt and unpredictable financial
impact in the first year. Faculty practice plans may be more disadvan
taged under the MFS than other physician groups, yet the uncertain imp
act of the MFS in the first year (1992) may inhibit accurate financial
planning for all physician groups.