Deans' Letter Urges Inclusion
of Physician Payment Relief in Upcoming Medicare Bills
June 13, 2003 - The deans of 95 medical schools signed
a June 9 letter
urging the inclusion of Medicare physician payment relief
legislation in any Medicare reform legislation taken up this
year. The letter was sent in anticipation of Medicare reform
mark-ups in the House and Senate health committees beginning
June 12.
Delivered to members of the Senate Finance Committee, House
Committee on Ways and Means, and House Committee on Energy
and Commerce, the deans' letter calls attention to a recent
projection by the Centers for Medicare and Medicaid Services
(CMS), that indicates a 4.2 percent reduction to the CY 2004
Conversion Factor. The letter also raises the likelihood of
continued payment volatility in the long-term.
The letter states that stable and adequate Medicare reimbursement
is "a critical issue" for medical schools, given
that faculty practices represent nearly one-sixth of all Medicare
physicians. Similarly, Medicare reimbursement accounts for
approximately 35 percent of a medical school's total revenue.
According to the letter, "the unexpected projected cuts
over the next several years reiterate that systemic flaws
in the Medicare physician payment methodology remain."
Such cuts, the letter adds, "will jeopardize our ability
to maintain the resources that support our core missions…."
The letter also explains that "our capacity to provide
charity care and stand-by disaster readiness" also may
be diminished by payment reductions.
Information:
Christiane Mitchell, Senior Legislative Affairs Manager
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526
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