I remember the call distinctly. I had just written an article for a publication titled “How to Negotiate Reimbursement Rates.” Dr. Jordan, a New York dermatologist, called and asked to speak with the author. I replied it was me, and he said, “I really need your help. I can’t survive under these reimbursement rates.” I let Dr. Jordan know I could absolutely help him and would need a few items before getting started. I begin explaining the process, and he stopped me in the middle and, in a strongly worded statement, said, “I need to meet with you immediately. In person.”
Inflation is affecting many businesses, but medical practices tend to see the brunt of its effects because of the way payment structures are dictated by insurance payers. Even more worrisome, practices have had to increase wages significantly and the current job market tends to favor employees. In some instances, employees are asking for wages 20-30% higher than previous, and understandably can command these wages as there is fierce competition for skilled employees. While these issues are affecting many businesses, there are things medical practices can do to help ease the squeezing margins.
