A recent CNNMoney article reveals that many doctors are struggling to keep financial stability in their practices. The result— many doctors have been driven to file for bankruptcy to help resolve money issues.
In recent years the medical world has seen this increasing trend, and while some physicians can continue to practice after bankruptcy, others consider it a career-ending event. This creates a dilemma for physicians and patients alike.
According to the article, there has been a recent spike in Chapter 11 bankruptcy filings by physicians. In many cases these doctors are not in the situation because of client malpractice lawsuits.
Unfortunately the weak economy has led consumers to cut back on office visits and made them less likely to consider elective procedures. These contributing factors have taken a toll on doctors’ revenue.
Doctors also blame shrinking insurance reimbursements , changing regulations, and the rising costs of malpractice insurance, drugs and other business necessities for making it harder to keep their practices afloat.
Florida-based bankruptcy attorney David Langley shared a story with CNN about a practitioner whose patients were mostly on Medicare. As the economy took a turn for the worse, fewer patients could afford to come in for visits and reimbursements and cash payments dropped. Her debt continued to grow, and she fell behind on state tax payments.
Tax officials showed up at the practitioner’s door to shut the clinic down, and she quickly filed an emergency bankruptcy with Langley. Then the attorney helped the practitioner restructure her debt, and the clinic remains open today.
Not all doctors get so lucky though, and many are forced to move on from their careers, leaving patients without proper care.
For the full story, visit CNNMoney.
Visit Luongo Bellwoar Law for more information on West Chester bankruptcy.