We physicians are very fortunate to have a long history of being well-compensated for doing the work we love.
Further, we recognize that we have fared better as a group than many people who have lost lives, businesses and hope in the COVID pandemic.
So, the information I'm about to share with you is not intended as an exercise in whining or complaining; it's my effort to educate you about what it's like to be a physician practicing medicine today.
It's hard to describe the high level of frustration among physicians today. Many doctors are drowning in despair.
Here's the latest hit that reminds physicians about their lack of agency in their own lives--and their financial futures.
This month the Centers for Medicare & Medicaid Services released its proposed 2023 Medicare fee schedule. Physicians' compensation will be reduced by 4.42%. This is after the 2% Medicare payment cut that went into effect July 1. These cuts hurt more in our current economic climate of record-high inflation rates, the rising costs of delivering medical care and physicians' utter fatigue.
What would you do if congress legislated a 6% cut in your compensation?
It is almost impossible to imagine a situation in which other professions would consider accepting compensation cuts right now. In fact, many professional groups are asking for raises or proposing strikes. And yet, despite being asked to do more with less resources, this is exactly what is routinely being asked and expected of physicians.
Why is congress cutting physician compensation? It's an effort to lower healthcare costs.
But math does not lie. This simply does not make sense.
Physicians' salaries make up less than 8% of healthcare expenditures. Cutting their salaries by 4% eliminates only ~0.3% of healthcare costs.
Why not reduce payments to insurance and pharmaceutical companies, who are posting record-breaking profits? These corporate giants protect their financial interests with huge budgets to lobby congress and influence their choices.
Physicians, on the other hand, are easy targets for salary cuts. They don’t strike, and they’re not able to unionize nationally. With <1 million practicing physicians in the US, their ability to lobby effectively through numbers or dollars is limited. In addition, physicians refuse to compromise patient care as a bargaining chip, and their altruism is used against them.
How much should physicians make? Everyone has a different idea.
However, we all have a sense of what it fair. Asking healthcare professionals--the people described as "healthcare heroes" for fighting tirelessly on the front lines for over two years--to accept pay cuts today does not say "thank you", build good will or foster resilience.
Here are a few consequences of the Medicare cuts:
As a financial services professional, you have a chance to help physicians take control of their financial destiny. You can help them do more with what they have.
I'm here to support you if you do!
My best,
Dr. Vicki
Further, we recognize that we have fared better as a group than many people who have lost lives, businesses and hope in the COVID pandemic.
So, the information I'm about to share with you is not intended as an exercise in whining or complaining; it's my effort to educate you about what it's like to be a physician practicing medicine today.
It's hard to describe the high level of frustration among physicians today. Many doctors are drowning in despair.
Here's the latest hit that reminds physicians about their lack of agency in their own lives--and their financial futures.
This month the Centers for Medicare & Medicaid Services released its proposed 2023 Medicare fee schedule. Physicians' compensation will be reduced by 4.42%. This is after the 2% Medicare payment cut that went into effect July 1. These cuts hurt more in our current economic climate of record-high inflation rates, the rising costs of delivering medical care and physicians' utter fatigue.
What would you do if congress legislated a 6% cut in your compensation?
It is almost impossible to imagine a situation in which other professions would consider accepting compensation cuts right now. In fact, many professional groups are asking for raises or proposing strikes. And yet, despite being asked to do more with less resources, this is exactly what is routinely being asked and expected of physicians.
Why is congress cutting physician compensation? It's an effort to lower healthcare costs.
But math does not lie. This simply does not make sense.
Physicians' salaries make up less than 8% of healthcare expenditures. Cutting their salaries by 4% eliminates only ~0.3% of healthcare costs.
Why not reduce payments to insurance and pharmaceutical companies, who are posting record-breaking profits? These corporate giants protect their financial interests with huge budgets to lobby congress and influence their choices.
Physicians, on the other hand, are easy targets for salary cuts. They don’t strike, and they’re not able to unionize nationally. With <1 million practicing physicians in the US, their ability to lobby effectively through numbers or dollars is limited. In addition, physicians refuse to compromise patient care as a bargaining chip, and their altruism is used against them.
How much should physicians make? Everyone has a different idea.
However, we all have a sense of what it fair. Asking healthcare professionals--the people described as "healthcare heroes" for fighting tirelessly on the front lines for over two years--to accept pay cuts today does not say "thank you", build good will or foster resilience.
Here are a few consequences of the Medicare cuts:
- Your parents might have a harder time finding doctors who accept them as patients as physicians limit their Medicare slots.
- The doctor who cares for you and your family may be burned out. They might not even want to be in the clinic or hospital.
- The doctor who cares for you and your family may be considering leaving medicine altogether.
As a financial services professional, you have a chance to help physicians take control of their financial destiny. You can help them do more with what they have.
I'm here to support you if you do!
My best,
Dr. Vicki