Planning for the expected Medicare cuts

Written by Reed Tinsley | June 25, 2007

What to have a good reason to do some strategic planning for your medical practice? Here's one - Unless Congress acts to negate the flawed sustainable-growth-rate (SGR) formula, providers will receive a 9.9 percent cut in their Medicare payments on Jan. 1, 2008.

And if these cuts do go in to effect (i.e. no congressional reprieve again), what do you think the managed care plans are going to do? Might you receive a letter saying something like this: "We would like to inform you that as of June 1, 2008, your reimbursement will not be calculated based on a ___% of the 2008 Medicare fee schedule."

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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