Providers should be aware that a 4.6% decrease in the Physician Fee Schedule for 2007 is anticipated.  This reduction is apparently driven by the increase in Medicare spending for physician services, which grew by 8.5% during 2005 due to the growth, volume and intensity of physician services.  Data for 2005 shows the largest growth is attributable to evaluation and management (E&M) services (31%); procedures such as physical therapy, podiatry and dermatology (29%); imaging services (27%); and laboratory and other tests (15%). 

       The AMA has indicated that the 2007 Medicare payment cut of 4.6% is just the tip of the iceberg, with CMS projecting cuts totaling 34% over the next 9 years.  With practice costs on the rise, the AMA has predicted that physicians will have no choice but to cut back on Medicare patients they see.

       For ideas on what your practice can do to increase its income and offset looming Medicare reimbursement reductions, please contact the Firm’s Health Law Department.