Medical debt is an ever increasing problem that is plaguing the U.S. With limited or unaffordable health care options pressuring the wallets of so many families, the sad truth is that thousands of families will be pushed into financial insolvency over medical bills this year. While the government looks for ways to alleviate the burden of healthcare costs, patients aren’t the only ones finding themselves in hardship over the healthcare crisis.
You might be surprised to learn that doctors, and even hospitals, aren’t profiting from the costs of your medical care as you might think. In fact, there has been an increasing trend in the number of medical practices closing their doors, hospitals seeking Chapter 11 and even doctors filing for personal bankruptcy as a result of the rising costs of medical treatment.
Florida bankruptcy courts have seen a significant increase in the number of medical professionals and practices seeking bankruptcy protection in recent years. So what exactly is going on? Doctors blame the consistently shrinking reimbursements from health insurance companies, changes in the regulations of qualifying health care conditions, the inflating costs of malpractice insurance and the ever increasing costs of medical business necessities like prescriptions and lab fees. When patients can’t afford to seek treatment doctors see a drop in cash paying customers and those that are covered aren’t returning as much in profits from insurance companies. The problem is similar to the economic challenges facing nearly every other industry in today’s wavering economy; instability and insecurity about the future.