Physicians Cut Costs By Rejecting Insurance

Danyell Jones | BHM Healthcare Solutions | June 5, 2013

More Physicians Convert to Cash Only Practices

Rising healthcare costs have been the focus of healthcare reform for quite some time.  However, recently several physicians have began rejecting insurance, opting instead for cash based practices in what is heralded as a successful means of decreasing the cost of care.  There are some indications that this is a movement that is being explored more frequently by physicians.

According to a 2012 survey which was reported by the New York Times:

  • More than 50% of physicians stated that they would be taking steps to reduce patient access to services
  • 7% reported that they would be switching to a cash only payment model, and eliminating third party payers

A similar article by Sally Pipes on behalf of Forbes reported the following:

  • Direct Payment Practices have increased from 9.2% of all practices in 2001 to 12.4% of all practices in 2008