Home News Childrens Health News Large Losses Anticipated for Primary Care Practices in 2020

Large Losses Anticipated for Primary Care Practices in 2020

Loss of gross revenue over 2020 due to COVID-19 estimated at $67,774 per full-time physician

MONDAY, June 29, 2020 (HealthDay News) — Primary care practices are estimated to lose more than $67,000 in gross revenue per full-time physician over the course of 2020 due to COVID-19, according to a report published online June 25 in Health Affairs.

Sanjay Basu, M.D., Ph.D., from Collective Health in San Francisco, and colleagues estimated the potential impact of COVID-19 on operating expenses and revenues of primary care practices using a microsimulation model incorporating national data on primary care utilization, staffing, expenditures, and reimbursements.

The researchers estimated that over the course of 2020, primary care practices would be expected to lose $67,774 in gross revenue per full-time physician (difference between gross revenue with COVID-19 and anticipated gross revenue in the absence of COVID-19). To neutralize the revenue losses caused by COVID-19 among primary care practices, the estimated cost would be $15.1 billion at a national level. If COVID-19 telemedicine payment policies are not sustained, this could more than double.

“We anticipate large, meaningful reductions in revenue for primary care practices as a result of COVID-19, which may result in sufficient financial adversity as to threaten practice viability should practices be unable to secure sufficient funding through either fee-for-service or capitated payment mechanisms,” the authors write.

Abstract/Full Text

Copyright © 2020 HealthDay. All rights reserved.