A Jobless Recovery Will Prolong Physician Financial Woes
But an improving economy doesn't mean physician financial woes will end soon. The underlying factors that have hurt medical groups are unemployment and strains on safety net programs, and those may actually get worse as the rest of the economy improves. Economists are predicting a jobless recovery initially; unemployment may climb past 10% while the rest of the economy rebounds. That means more patients losing their insurance or migrating to already bloated Medicaid rolls, and possibly further reimbursement cuts. And it means more revenue struggles for medical groups.
The old conventional wisdom that said healthcare is recession proof has been soundly dispelled by the current downturn. The new conventional wisdom is that healthcare is one of the last sectors to be affected by a recession, but also one of the last to recover.
It's still too early to tell if there's any wisdom in that.
Note: You can sign up to receive HealthLeaders Media PhysicianLeaders, a free weekly e-newsletter that features the top physician business headlines of the week from leading news sources.
Elyas Bakhtiari is a freelance editor for HealthLeaders Media.
- CVS Ramps Up Retail Clinics with Provider Affiliations
- 4 Tectonic Shifts Shaking Up Healthcare
- As States Regulate Provider Competition, Common Threads Emerge
- Medical Errors Third Leading Cause of Death, Senators Told
- Contradictory Obamacare Rulings Issued by Appellate Courts
- As HIPAA Breaches Accelerate, Tools Lag
- Recruiting Retired Clinicians
- Chronic Disease Care Costs Get Bipartisan Attention
- Roundtable: Life After a Healthcare Organization Acquisition
- Study Puts Spotlight on Preventing Fall-Related Injuries