Medicare cuts may cause layoffs.

The impending 9.9% cut in the Medicare physician fee schedule is likely to result in staff and infrastructure cutbacks by medical group practices, according to a poll taken by the Medical Group Management Association. Of 613 group practice leaders who responded, more than 41% said they expected that their practices would limit the number of Medicare patients treated, and 19% said they would refuse to accept any new Medicare patients. In addition, almost 45% said they would reduce the number of administrative staff employed by their practice, and 33% said they would reduce the number of clinical staff. Respondents said compensation for both staff and physicians also would probably suffer, with 22% eyeing reduced staff salaries and 57% reducing staff benefits; 59% reported they would likely lower physician pay. Reducing funds for information technology and facilities was favored by 53% and 59% of respondents, respectively. "Unfortunately, it's the patients and employees who staff these facilities that bear the burden of the financial belt-tightening in group practice," Dr. William Jessee, president and CEO of MGMA, said in a statement.