What a cut in Medicare reimbursement really means

That, combined with the push for an EHR:

The federal government is pushing for physicians to implement electronic medical records, thus adding to their overhead expense, she said.

“Suppose your overhead was 60 percent and you’re going to get a cut of 10 percent,” Turner said.

“That entire 10 percent comes out of the 40 percent you were going to take home, so now you’re only going to have 30 percent of the takehome pay, plus you’re going to have increased expenses with that electronic medical record. So now your expenses go up to 70 percent, but the feds cut you to 90 percent. That gives you the 20 percent for take-home pay.”

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