2003 Medicare Survey

November 19, 2003
For Immediate Release:

SURVEY: PHYSICIANS PESSIMISTIC ABOUT FUTURE OF MEDICARE:
Situation critical, “reforms” expected to worsen as doctors
bail out, refuse patients
Wouldn’t take part if starting over & predict rationing

Washington, D.C. – More doctors will bail out of Medicare, while those who remain will continue to refuse new patients and restrict services, leading to severe rationing in the next ten years.

Those are the dire predictions of physicians revealed in a new survey titled “Demoralized Doctors, Disheartened Doctors, Patient Problems: AAPS Biannual Survey of Physicians on Medicare and Patients’ Access to Care” to be published in the Journal of American Physicians and Surgeons (JP&S), winter issue due out in December. (See: www.jpands.org)

While the future looks bleak, the present isn’t much better, according to 344 physicians responding to the respondents, who are involved in patient care at least 20 hours and an average of 23 years in practice.

“This study is concrete documentation of the atmosphere of fear and frustration in which doctors practice today,” said Kathryn Serkes, co-author of the survey and public affairs counsel for the Association of American Physicians and Surgeons (AAPS). “Money is not the issue – control is. More doctors would rather treat uninsured patients, possibly for free, than jump through Medicare hoops.”

The results show that increased government involvement in Medicare is actually responsible for increasing physician demoralization and practice changes that are making it tougher for patients to find doctors who are willing to treat them. And the impact is being felt by all patients, not just seniors, and will get worse if an open-ended, costly drug benefit is added.

“Tacking on some cosmetic changes as Congress is now considering in the conference report will only make things worse,” said Serkes. “It’s like the sick patient who was in deep denial. He delayed treatment for so long that he became terminally ill, and then ran out to have expensive plastic surgery – that bankrupted him. But his friends say he was a good-looking corpse.”

The survey supports 6 conclusions:

1. Increasing fear of prosecution or government retaliation has had a negative impact on Medicare patients’ access to physicians, and their ability to receive referrals and certain services such as surgery.
2. Compliance with Medicare regulations is costly, takes significant time away from patient care, and is an increasing cause of reluctance to treat Medicare-eligible patients.
3. Unrestricted private contracting under Medicare would greatly increase willingness to treat Medicare-eligible patients.
4. Increased fear of retaliation and regulatory burden are causing physicians to make changes in practices that adversely affect patient access and quality.
5. The increasing role of government in medicine results in more difficulty for all patients to access care, not just those who are Medicare-eligible.
6. Physicians are becoming increasingly disheartened and negative about the future of the practice of medicine.

The survey examines five areas: Access by established Medicare patients, acceptance of new Medicare patients, costs and changes to practices, opting out and private contracts, and assessment of the future of the practice. Further, the survey looks at trends of the past three surveys.

Some of the findings:

• 33% do not accept new Medicare patients;
• 40% restrict services to all Medicare patients;
• (Reasons: “billing and regulatory requirements” ranked first, followed by “hassles and/or threats from Medicare carriers/government, “fees too low” & “fear of prosecution or civil actions”)
• 41% have had difficulty finding a referral physician;
• 32% say level of service is less than 5 years ago;
• 22% is the amount of total staff & physician time spent on compliance with Medicare regulations;
• 65% would not take part in Medicare again;
• Medicare claims cost offices 50% more to process;
• 63% would be more willing to serve Medicare patients with unrestricted private contracting;
• 67% predict more doctors opting out of Medicare;
• 58% predict severely rationed care;
• 36% predict a complete collapse;
• 62% plan to retire at an earlier age than expected 5 years ago;
• (Reasons: “Increased government interference,” followed by “increased regulatory burden.” Money ranked number six.)

Physicians have made great changes to their practices to comply with Medicare regulations, most involving less time for patient care or additional cost, including spending more time on documentation, restricting services, hiring more compliance and billing staff, or just quitting Medicare.

Of particular note is that physicians prefer uninsured to Medicare patients, turning them away 50% less frequently than Medicare patients (17% and 33% respectively).

“This regulatory roulette is affecting every patient in the country. Doctors have less time to spend with patients, and are retiring earlier than ever,” said Serkes. “Medicare expansion will only bring more of the same.”

Serkes says one respondent’s comment sums it up: “Unless things change soon, the best and the brightest will leave Medicare. It’s simply not worth it.”

AAPS is a dues-supported, non-partisan, professional association of physicians in all specialties, dedicated since 1943 to protecting the sanctity of the patient-physician relationship.