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Medical profession under pressure from Medicare, Blue Cross, liability fees

Newell E. Warde, executive director of Rhode Island<br></img>Medical Society.
Newell E. Warde, executive director of Rhode Island
Medical Society.

Name: Newell E. Warde



Position: Executive director of the Rhode Island Medical Society


Background: Warde has been executive director of the society for 14
years. Prior to that he spent four years as assistant director, after seven
years as a professor at Bates College in Lewiston, Maine.


Education: Bachelor of arts from Hamilton College in Clinton, N.Y.,
1969; master of arts from University of Massachusetts Amherst, 1972; Ph.D. in
German literature from UMass Amherst, 1975


Age: 55


Residence: Smithfield


 


The Rhode Island Medical Society is the professional association of Rhode
Island doctors in all medical specialties, and includes medical doctors, osteopathic
physicians, physician assistants and medical students. Founded in 1812, it is
dedicated to the improvement of the public health and the advancement of the
profession of medicine.


 


PBN: The federal government cut Medicare payments to doctors by 5.5 percent
last year, with another 4.4 percent scheduled for this year. How have doctors
been coping with those cuts?


Warde: Well, it’s too early to tell. I think one of the things to keep
in mind is that it isn’t just the Medicare cuts or the Blue Cross cuts or the
fact that liability premiums are going through the roof again or that health-care
premiums are going up so much. It’s that combination of things that is really
deadly for doctors right now. Doctors have lost the ability to control their
revenue streams. What they’re paid for their work is determined by others, by
insurers and by Medicare. They have next to no ability to pass increases in
their overhead on to anybody. Practice expenses are going way up, combined with
the cumulative decrease in Medicare reimbursement, with another 4.4 percent
cut about to kick in if Congress doesn’t act and there are more cuts scheduled
for next year. And Blue Cross has announced a 7 percent cut. The business that
doctors are in doesn’t make a lot of sense right now.


 


Are there really doctors who aren’t taking new Medicare patients or who
are turning away old patients because of the cuts?



I don’t know about turning away established patients. But I do know that doctors are limiting the number of Medicare patients they’ll see, although I can’t tell you how many are doing that at this point. I may have some data in another couple of weeks from a survey we are putting out to every doctor in the state.


 


Is there any reason for Medicare patients to be concerned about access
to care?



I think Medicare patients need to be concerned everywhere in the country. And I think they need to be concerned especially in Rhode Island, because there are many practices where Medicare is 40 percent of the patient base. And that gets to be very significant.


You mentioned the Blue Cross cuts. What has been doctors’ response to that
7 percent reduction?



They are very, very upset by it. I think the feedback that Blue Cross is getting from those cuts may be more vehement than they expected. These cuts come at a time when doctors can look back 10 years and say ‘this insurer has never given me a meaningful increase. And now, with my overhead costs going through the roof, they’re actually cutting me 7 percent.’ It’s a very bitter pill for doctors to swallow.


 


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