As many doctors struggle to keep their practices financially sound, some are buckling under money woes and being pushed into bankruptcy.<\/p>\n
It\u2019s a trend that\u2019s accelerated in recent years, industry experts say, with potentially serious consequences for doctors and patients. Some physicians are still able to keep practicing after bankruptcy, but for others, it\u2019s a career-ending event. And when a practice shuts its doors, patients can find it harder to get the health care they need nearby.<\/p>\n
Chapter 11 bankruptcy filings by physician practices have spiked recently, noted Bobby Guy, co-chair of the American Bankruptcy Institute\u2019s health care committee, who tracks bankruptcy trends tied to distressed businesses. Guy said there were at least eight filings in recent weeks, which he said was \u201cvery unusual.\u201d<\/p>\n
Five years ago, Plantation, Fla.-based bankruptcy attorney David Langley didn\u2019t have a single doctor as a client. Since then he\u2019s handled at least six bankruptcy cases involving doctors. Two current clients \u2014 an orthopedic surgeon and an OB\/GYN \u2014 also are in bankruptcy.<\/p>\n
None of his physician clients had malpractice lawsuits that landed them in dire financial straits. All are \u201ctop-notch doctors,\u201d he said.<\/p>\n
The weak economy has taken a toll on doctors\u2019 revenue, as consumers cut back on office visits and lucrative elective procedures, said Guy, a bankruptcy attorney in Nashville with Frost Brown Todd LLC.<\/p>\n
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.<\/p>\n