Federal Budget Pleases Doctors, Not Hospitals

The major trade groups for healthcare providers offered a decidedly mixed reaction to President Barack Obama's Fiscal 2012 budget proposal released Monday, with doctors praising the plan and hospitals panning it. 

The American Medical Association looked favorably upon the president's plan to shift about $50 billion in Medicare and Medicaid payments away from states, insurers and drug companies over the next 10 years, and use the money to improve physician reimbursements.

"Based on preliminary reports, the AMA is pleased that President Obama's proposed budget includes funding to address Medicare physician payments and medical liability -- two broken policies that are driving up cost and compromising patients' access to physician care in our nation," said AMA President Cecil B. Wilson, MD.

"Permanent reform of the Medicare physician payment system is essential to ensuring seniors and baby boomers now entering Medicare can receive the physician care they deserve. The president's budget includes a renewed commitment to permanently fix the broken Medicare physician payment system, which the AMA strongly supports. It also contains funding to delay the devastating cuts scheduled to occur Jan. 1, 2012 for another two years, which is important for providing stability in the Medicare system while a permanent solution is enacted."

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