Physicians are increasingly concerned about independent practice viability amid another 2.83% cut by CMS.
"It's nothing new. We face these challenges every year," Nolan Lubarski, CEO of the Center for Neurosciences, Orthopaedics, & Spine, a physician-owned multispecialty practice in Dakota Dunes, S.D., told Becker's.
CMS cut overall physician pay by 1.25% for 2024, and, overall, physician reimbursement amounts per Medicare patient decreased around 2.3% between 2005 and 2021 when accounting for inflation, according to a new study from the Harvey L. Neiman Health Policy Institute.
Declining reimbursements are particularly tough for independent groups, Mr. Lubarski added, as the cost of practicing medicine continues to rise.
"Physicians are motivated by patient interactions, but with reimbursement challenges, they’re forced to see more patients to cover costs and compensate for their services," he said. "This 'do more for less' approach is exhausting."
One approach CNOS takes is "by expanding satellite clinics to reach rural communities, fostering relationships with rural hospitals and health systems," Mr Lubarski said.
Additionally, adding ancillary services — including physician therapy, CT and MRI — can meet community demand while boosting financial stability.
CNOS strategy remains nimble.
"With nine specialties, we’re always considering expanding into others that may be in demand," he said.
There's also the possibility of acquisitions. CNOS has made two acquisitions in the last two years that have scaled its business, Mr. Lubarski said, which helps mitigate reimbursement cuts.
"Many physicians want to remain independent but struggle to make it financially viable," he said. "To stay independent, some choose mergers or acquisitions."