With State’s Physician Supply Stunted and Health Care Demand Growing, Legislature Passes Abatement to Encourage Doctors to Stay
Pennsylvania Mcare Fund data indicate that the number of permanent full-time-equivalent physicians has fallen from 36,500 in 1998 to 32,000 in 2004. At the same time, in 2004 only 7.8 percent of Pennsylvania doctors-in-training stayed in Pennsylvania after completing residency, down from 50.5 percent in 1994. Between 1999 and 2005, the top 20 most populous states saw a 15 to 35 percent increase in the number of physicians with a Medicare unique physician identification number permitting them to bill for Medicare services and refer Medicare patients. However, Pennsylvania saw a 10 percent decline.
As a result, by 2010 Pennsylvania could face a shortfall of nearly 10,000 physicians based upon current trends related to supply and demand.
Many people believe that Pennsylvania is not doing a good job at attracting physicians. And, they may have a point when you consider that in 2004, the National Practitioner Data Bank documented Pennsylvania physician liability insurance payouts of $450 million, up from $180 million in 1991. High liability payouts are associated with high liability insurance premiums. In the eyes of a young doctor who likely has a large student loan to repay, such alarming numbers do not make Pennsylvania attractive.
The matter is serious, and our state leaders are expressing their concerns through their actions for the future health of Pennsylvania.
Governor Rendell sent an October 2006 recruitment letter to doctors-in-training with hopes of attracting them to Pennsylvania on a permanent basis.
And, our state legislature is stepping in too by overwhelmingly passing an abatement program to help lower the actual cost of medical liability insurance that doctors pay. In a nutshell, the legislature is helping keep doctors in Pennsylvania by paying a portion of their liability insurance bill in exchange for a commitment to stay for the subsequent year.
The Pennsylvania Medical Society thanks the governor and the members of both the Pennsylvania House of Representatives and Senate to continue this insurance relief program. We sincerely hope that these actions help Pennsylvania finally turn the corner and reverse the negative supply and demand trends so that all Pennsylvania patients don’t have to worry about the future of their health care.
Last Updated: 10/5/2007