Doctor Practices Losing Revenue, Patients, Staff

Doctors offices across the country have been laying off and furloughing staffs as revenues decline sharply and are expected to continue declining, according to a recent survey of the effects of the virus crisis.

  • 97 percent of physician practices have seen revenues plunge, according to the survey, conducted April 7 and April 8 by the Medical Group Management Association.
  • 60 percent of practices reported a decline in patient visits.
  • 22 percent of the survey’s 724 respondents reported layoffs and 48 percent furloughs.

“Not only has 70 percent of our revenue disappeared, but our physicians are still working every day, exposing themselves to risks, taking care of patients, and taking care of their employees by continuing to pay them while they have taken over a 50 percent pay cut,” said a representative of an independent anesthesiology practice in Alabama who was quoted by MGMA.

Employed groups tend to be in better financial shape than independent practices because they have the resources of large healthcare systems behind them, MGMA reported. Some hospitals have laid off employees, however, and some of the cuts are starting to hit outpatient clinics, they noted.

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