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Fitch: Fiscal Cliff May Slash Medicare Payments to PhysiciansNEW YORK --(Business Wire)-- Unless averted by Congress and the Administration, the automatic spending cuts included in the so-called "fiscal cliff" would reduce the Centers for Medicare & Medicaid Services (CMS) reimbursement rates for physicians by 27%, according to an estimate by the Congressional Budget Office. If implemented, Fitch believes these cuts would have a significant negative effect on most of the U.S. healthcare industry and a particularly large impact on hospitals with large employed physician bases. In addition, these cuts could have unintended consequences, such as decreased physician access for Medicare patients. Payments to physicians are subject to a sustainable growth rate formula used by CMS to calculate healthcare spending and bring it in line with budgeted expenditure over time. However, since 2003, Congress has deferred action on proposed annual rate reductions. Additional information is available on www.fitchratings.com. The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. |
