The practice of medicine is highly revered in the U.S., and yet no other industry or career path has as much regulation or such widespread and public potential of litigation for malpractice. The days of the venerable country doctor are over, yet the public still holds that perception, while the reality is more controlled by Federal agencies, insurance companies, Congress, drug companies, attorneys, and technology.
Today, more than 65% of the new physicians bypass private practice when they begin their practice of medicine. Largely due to the costs of starting a practice (much of which is due to the heavy regulation and litigation potential) these new doctors would rather be employees of hospitals and have someone else take all or most of the risk. Just a few of the laws that have contributed to this transition are The Health Insurance Portability and Accountability Act (HIPAA) passed in 1996; the Balanced Budget Act of 1997; the HITECH Act 2009, and of course the Patient Protection and Affordable Care Act (PPACA), commonly called Obamacare.
The Affordable Care Act Effects On Private Practice
Besides the movement away from entrepreneurship, this transition can have an impact of the quality of care if only from the standpoint of the potential for changing the highly regarded "physician-patient interaction" standard the public has long treasured. There is another trend that is just emerging. More of the existing doctors are choosing to become hospital employees rather than struggle with the unprecedented challenges which medical practices face in accounts receivables management and cash flow. Again, these challenges are the result of the regulations of Medicare, Medicaid, commercial insurance, and the many acts mentioned earlier.
The latest act, Obamacare, is still unfolding. Only a small portion of its regulatory structure has been implemented. The act was intended to help citizens pay for healthcare by forcing regulations onto insurance companies and private citizens, but the impact of this, as well as the other acts, always falls on the medical provider, usually in the form of reduced reimbursement. Obamacare promises to impact the financing model of healthcare in ways still unknown, but potentially feared by most physicians. However the known provisions of the legislation are already having an effect. The continued pressure to reduce Medicare reimbursements are a known part of the act. Lesser known provisions, such as the pressure to move the healthcare financing model to ACOs (Accountable Care Organizations), and the incentives to force medical providers to purchase and use EMRs (electronic medical records) systems, have caused nothing less than frenzy in the private medical community.
Today, more than 65% of the new physicians bypass private practice when they begin their practice of medicine. Largely due to the costs of starting a practice (much of which is due to the heavy regulation and litigation potential) these new doctors would rather be employees of hospitals and have someone else take all or most of the risk. Just a few of the laws that have contributed to this transition are The Health Insurance Portability and Accountability Act (HIPAA) passed in 1996; the Balanced Budget Act of 1997; the HITECH Act 2009, and of course the Patient Protection and Affordable Care Act (PPACA), commonly called Obamacare.
The Affordable Care Act Effects On Private Practice
Besides the movement away from entrepreneurship, this transition can have an impact of the quality of care if only from the standpoint of the potential for changing the highly regarded "physician-patient interaction" standard the public has long treasured. There is another trend that is just emerging. More of the existing doctors are choosing to become hospital employees rather than struggle with the unprecedented challenges which medical practices face in accounts receivables management and cash flow. Again, these challenges are the result of the regulations of Medicare, Medicaid, commercial insurance, and the many acts mentioned earlier.
The latest act, Obamacare, is still unfolding. Only a small portion of its regulatory structure has been implemented. The act was intended to help citizens pay for healthcare by forcing regulations onto insurance companies and private citizens, but the impact of this, as well as the other acts, always falls on the medical provider, usually in the form of reduced reimbursement. Obamacare promises to impact the financing model of healthcare in ways still unknown, but potentially feared by most physicians. However the known provisions of the legislation are already having an effect. The continued pressure to reduce Medicare reimbursements are a known part of the act. Lesser known provisions, such as the pressure to move the healthcare financing model to ACOs (Accountable Care Organizations), and the incentives to force medical providers to purchase and use EMRs (electronic medical records) systems, have caused nothing less than frenzy in the private medical community.