As Medicare revenue drops and costs rise, practices face hard choices

Why This Topic Matters

Medicare underpayment and rising overhead affect day-to-day practice operations, staffing, and long-term business planning. Understanding the article helps readers assess whether their practice should consider revenue diversification, workflow changes, or broader payment-model shifts.

Article Sections

1. Practice management and survey findings

   Introduces the financial pressure reported by medical practices and summarizes the MGMA survey context. It frames the article’s focus on revenue trends and operating costs.

2. APM no panacea

   Discusses broader movement away from fee-for-service and toward value-oriented payment approaches. It also covers general implementation barriers and CMS-related model considerations.

3. Other plans (and no plans)

   Reviews alternative business approaches practices may use when Medicare reimbursement is insufficient. The section also touches on practice model changes and patient-payment strategies.

4. 5 ways to cut costs

   Outlines broad operational steps practices may consider to reduce expenses and improve financial performance. It includes general categories such as service-line expansion, outsourcing, workflow changes, auditing, and staffing utilization.