Heed warnings from experts when dealing with sequestration cuts

Why This Topic Matters

It helps medical practices understand which common cost-cutting responses deserve caution and which areas of revenue cycle and contract management should be reviewed more carefully when payment reductions affect cash flow.

Article Sections

1. Physician payments

   Introduces the financial context of the article and frames the discussion around practice-level responses to payment pressure.

2. Layoff plans

   Discusses staffing reductions as a possible expense-control approach and emphasizes the need to assess operational impact before making changes.

3. Pay and benefit cuts

   Covers compensation and benefit adjustments, along with broader considerations related to employee morale and performance measurement.

4. Limiting the number of Medicare patients

   Examines patient-mix decisions involving Medicare and notes the importance of market awareness and reimbursement context.

5. Reviewing payer contracts

   Focuses on periodic payer contract review, fee analysis, and preparation for negotiations using market-based reimbursement information.

6. Referring out chemotherapy treatments

   Addresses arrangements related to drug therapy revenue and the need to consider contract structure and patient interests.

7. Doing nothing

   Summarizes the importance of ongoing reimbursement monitoring even when no major operational changes are made.