Recently I came across an interesting article entitled "Doctors Going Broke". The article set forth several examples of physicians who are struggling to keep their practices going because of cuts to Medicare. The examples in the article referenced cardiologists and an oncologists, but it is likely that other examples could be found in any practice where a substantial amount of the patients are Medicare patients.
One cardiologist who was apparently interviewed for the article stated that he and his partners had to dip into their personal assets to meet payroll obligations. That cardiologist said that cuts of 35% to 40% in Medicare reimbursements for key cardiovascular services, such as stress tests and echocardiograms, have taken a substantial toll on his practice's revenue.
In addition to cuts in compensation for services, cuts in reimbursements can have dire consequences on a medical practice. An oncologist referred to in the article owes $1.6 million for medications that were not reimbursed.
The impact of cuts in Medicare will be felt by many Physicians, which could lead to exposure of personal assets. If assets have not been protected well in advance, the impact could lead to financial devastation. Proper use of business entities and trusts, including domestic asset protection trusts, can shield assets for future use.
If you are interested in asset protection planning, give us a call at (801) 438-6030 to set up your free consultation or e-mail us at info@hunterestategroup.com.
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