The COVID-19 pandemic is making its presence felt at all levels of healthcare, and a new survey affirms that independent medical practices and their billing companies are facing unprecedented challenges.
Kareo, a cloud-based medical technology company, recently interviewed 600 medical practices and 140 medical billing companies. The findings revealed that 75 percent of medical practices and clinics reported either a current telemedicine option or the intent to deploy one soon to make up for the loss of patient volume as a result of COVID-19. In the third week of March, Kareo officials said they saw a 500 percent week-over-week increase in telemedicine visits while working to accommodate an over 3,000 percent increase in telemedicine adoption.
The survey also highlighted the risks to patients and independent medical practices, with 9 percent of respondents reporting practice closures with many more concerned about potential practice closures as patient office visits plummet due to "stay at home" orders and other concerns.
As Kareo was publishing these survey results, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law, potentially providing a lifeline to the most severely impacted medical practices, the researchers noted. The $2 trillion federal stimulus bill includes $100 billion for healthcare organizations, though it’s unclear how the money will be divvied up.
By mid-March, while 63 percent of practices were still delivering on-site care, most of these practices were exploring options to move to hybrid or exclusively telemedicine-based care, the data revealed. Kareo's ongoing analysis of actual patient encounters across over 50,000 medical providers found that by late March, independent medical practices have experienced approximately a 35 percent decline in patient volume, “raising alarm around both the apparent inability for patients to access care and the operational viability of medical practices if this trend continues.”
The research also highlighted the impact felt by the more than 5,000 medical billing companies across the country, with these service providers reporting immediate impacts on their businesses due to precipitous decline in medical practice patient volume. According to the researchers, “These companies play a critical role in the healthcare ecosystem by providing medical billing expertise that is essential for the financial viability of many independent medical practices. Financial risk to these service providers creates another risk for medical practices to manage as practice volumes ultimately return to normal.”
There, are, however, several government programs that practices can take advantage of to ease financial burdens and maintain their current staff levels, the researchers stated. Small business loans, tax relief, Medicare payment advances and grants are a few of the options currently available.
"Independent medical practices stand as the cornerstone of the U.S. healthcare system and are responsible for more than two-thirds of annual patient visits," said Dan Rodrigues, founder and CEO of Kareo. "Yet our research shows that even doctors are not immune to the economic impact of the coronavirus pandemic. Telemedicine and the CARES Act provide critical lifelines to ensure independent practices remain available to their patients through this crisis."
