Independent Physicians Are Being Left Behind

Independent physicians are facing a crisis. Eric Bricker, MD, highlights in his recent video that over the last five years, Medicare payments to independent doctors have dropped 33% when adjusted for inflation, while hospital reimbursements have kept pace with inflation and in many cases are now more than double physician rates for the same services.

From 2001 to 2022, Medicare payments to physicians rose just 10%, compared with a 70% increase in inflation and a 70% rise in hospital payments. Commercial insurance shows a similar disparity, paying physicians about 139% of Medicare rates, but paying hospitals 263% for outpatient and 205% for inpatient services.

This imbalance is pushing independent physicians to close their doors or sell to hospitals and private equity groups. For many, it feels like the only option.

At Meroka, we believe it doesn’t have to be this way. We help independent practices remain independent by transitioning ownership to employees through an ESOP model, increasing revenue, and cutting administrative costs. The goal: restore humanity in healthcare while preserving physician autonomy.