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Medicare payment changes and physicians' incomes.

William B Weeks1, Amy E Wallace

  • 1Department of Community and Family Medicine, Dartmouth Medical School, Hanover, NH, USA.

Journal of Health Care Finance
|December 5, 2002
PubMed
Summary
This summary is machine-generated.

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Changes to the Medicare Fee Schedule (MFS) did not significantly alter physician incomes as intended. Academic physicians remain underpaid compared to private sector physicians, potentially impacting recruitment.

Area of Science:

  • Health Economics
  • Medical Policy
  • Physician Compensation

Background:

  • The Medicare Fee Schedule (MFS) was implemented to control Medicare expenditures and reduce income disparities between primary care and procedural physicians.
  • Understanding the impact of payment reforms on physician income is crucial for healthcare policy and medical workforce planning.

Purpose of the Study:

  • To assess whether academic and private sector physicians experienced income changes aligning with Medicare Fee Schedule (MFS) payment adjustments.
  • To investigate the relationship between Medicare revenue changes and income fluctuations across different medical specialties and practice settings.

Main Methods:

  • Income data was collected through surveys of private sector and academic physicians in six specialties: family practice, general internal medicine, psychiatry, general surgery, radiology, and anesthesiology.

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  • Analysis focused on comparing income trends in relation to payment schedule changes under the MFS.

    • Main Results:

    • Except for general internal medicine, Medicare revenue changes did not strongly correlate with income shifts in either academic or private sectors.
    • Academic physicians consistently earned less than their private sector counterparts, though this gap narrowed slightly over the study period.
    • The MFS adjustments had a limited effect on influencing physician incomes across most specialties examined.

    Conclusions:

    • Modifying payment schedules, even by a large payer like Medicare, may be an ineffective strategy for altering physician incomes or specialty attractiveness.
    • Persistent income disparities between academic and private practice could hinder the recruitment of physicians into academic medical careers.