Escalating Costs, Administrative Hassles Could ‘Drive’ Doctors from Massachusetts

Massachusetts' rising costs and a difficult health care "environment" could "drive" doctors from the state and "erode" patients' access to care, according to a report released July 23 from the Massachusetts Medical Society. The Worcester Telegram & Gazette reports that for the seventh consecutive year, the society announced that the "economic conditions" for the state's practicing physicians have declined. James Howell, president of the Howell Group, the consulting firm that conducted the study for the medical society, said the "clearest signs" of trouble for doctors are "rising housing prices, escalating malpractice insurance rates" and an increase in the number of "doctors wanted" advertisements in the New England Journal of Medicine, from 1,238 in 1997 to 2,040 last year. Also, the median costs for doctors to hire nurses and other workers rose about 20% between 1994 and 2000, while supply costs increased about 58% during the same time period. In determining the economic forecast, the report also examined the number of physicians older than 55 and the hours spent caring for patients, which both increased. Dr. Francis Rockett, president of the medical society, said, "As a group, physician practices are struggling because the environment in which they operate is more difficult than ever before. And as a result, patients' access to good health care is more at risk than ever before." The Gazette reports that there are "few obvious solutions" for policymakers to consider to alleviate the situation. However, the medical society is pushing legislators for "higher reimbursements" from health plans and government programs, standardization of claim forms and "less contact" with health plans. "We've got to get some relief from the administrative burdens that have been placed on physician practices," Rockett said. The Gazette also reports that the state's health care system as a whole has "experienced similar problems," as hospitals lost $200 million caring for Medicaid patients in 1999 and nursing homes lost $236 million last year (Eckelbecker, Worcester Telegram & Gazette, 7/24). The medical society report is available online.