OCT 22, 2012 5:14pm ET

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MGMA: Payment Uncertainty Impairs New Medicare Models

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A recent survey of more than 1,000 physician group practices demonstrates the need for repeal of the Medicare annual sustainable growth rate payment cuts that loom annually, and enactment of a five-year period of Medicare payment stability, according to the Medical Group Management Association.

MGMA conducted the survey with its affiliate American College of Medical Practice Executives standards-setting association. They found only 18 percent of respondents participating in a new Medicare payment delivery model or demonstration program. However, 82 percent of surveyed practices would be likely to explore new models if a degree of payment stability was restored to Medicare.

A looming 27 percent cut in Medicare payments will occur in January if Congress doesn’t act. The potential cuts are forcing practices to reduce staff and charity care, and delay purchases, according to survey respondents. Full results are available here.

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