Medicare Cuts Threaten Pandemic Weary Healthcare Systems

AMGA Calls on Congress to Prevent 10% Medicare Cuts to Providers

Alexandria, VA – Forty-three percent (43%) of medical groups and integrated health systems surveyed by AMGA would consider hiring freezes to make up lost revenue if 10% Medicare cuts to provider reimbursement take effect.

The survey findings point to difficult choices provider organizations will make that will have a negative impact on an overwhelmed workforce, as well as on maintaining the best possible patient care. Survey respondents indicated actions they could potentially take:

  • 43% Hiring freezes and delays
  • 37% Elimination of services
  • 25% Furlough/layoff non clinical staff
  • 22% Not accept new Medicare patients

The 92 respondents of the survey represent the nation’s leading medical groups and integrated health systems. The survey was conducted August 30 – September 8, 2021.

Providers are facing upwards of 10% cuts in Medicare starting in January 2022. The reduction consists of the pending 2% Medicare sequester cut, 4% Medicare Pay-As-You-Go reduction, and a scheduled 3.75% decrease in the Medicare conversion factor.

“The pandemic already has inflicted a toll on healthcare organizations and patients, and we are not at the end of it,” stated AMGA President and CEO Jerry Penso, M.D., M.B.A. “It will take years for our healthcare system and our communities to recover. Providers need financial stability, not cuts, to survive in the present.”

Scott Hines, M.D., chair of AMGA’s Public Policy Committee, and chief quality officer and medical director at Crystal Run Healthcare, said, “The cost of providing health care during the pandemic increased for many reasons, including workforce demand and supply chain issues. A Medicare reimbursement cut on top of rising costs will not enable providers to meet the growing needs of their patients.” He added, “Nobody wants to be in the position of decreasing services to our communities.”

Penso concluded, “What needs to happen? Congress should delay the pending 2% Medicare sequester and eliminate the 4% Medicare Pay-As-You-Go cut. Congress also should cancel a scheduled 3.75% decrease in the Medicare conversion factor.”

On August 31, AMGA sent a letter to Congress about the Medicare cuts and other current critical issues for medical groups and systems. AMGA’s complete recommendations can be found here.

An infographic detailing the cuts is also available available here.


About AMGA
 AMGA is a trade association leading the transformation of health care in America. Representing multispecialty medical groups and integrated systems of care, we advocate, educate, innovate, and empower our members to deliver the next level of high performance health. AMGA is the national voice promoting awareness of our members’ recognized excellence in the delivery of coordinated, high-quality, high-value care. Over 177,000 physicians practice in our member organizations, delivering care to more than one in three Americans.


Media Contact:

Sharon Grace
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703.838.0033 ext. 393