The California Academy of Family Physicians (CAFP) announced a program to provide loans to members suffering the negative economic effects of the 10% Medi-Cal cut in payments to physicians that took effect July 1.
"We are providing a lifeline to family physicians who otherwise may be forced to turn away Medi-Cal patients or even shut down their practices entirely," said CAFP President Jeffrey Luther, MD. "The State of California's Medi-Cal payments to physicians are the lowest in the nation. This underpayment threatens the existence of family medicine practices across the state."
Concerned that their patients will have nowhere else to get the health care they need, family physicians are committed to serving indigent and disabled patients whose care is paid for under the Medi-Cal program. "Our compassion has carried us this far," Luther said, "but the State is paying less than it costs us to provide care. Family physicians simply can't afford to continue subsidizing patient care out of our own pockets."
California already is in the midst of a primary care physician shortage as fewer medical students choose family medicine and other primary care specialties. Underpayment is one of the primary deterrents to young physicians. "The Governor and our legislators are escalating the primary care physician shortage crisis by refusing to adequately pay the very doctors who keep Californians healthy," Luther explained. "Family physicians provide preventive care and manage chronic illnesses like heart disease and diabetes. When patients can't find a doctor to care for them, they delay seeking care or they turn to emergency rooms where care is more expensive and a framework for essential continuity of care does not exist."
The Academy's Board of Directors has established a $100,000 fund and is offering $7,500-$10,000 emergency individual loans to assist physicians grappling with the Medi-Cal payment cuts. Available to family physicians for whom Medi-Cal patients comprise at least one-third of their practice, the loans are available immediately.
"It's a sad day for health care when a medical specialty society is paying for health care that's actually the State's responsibility to provide," Luther said. "We call on the Governor and the Legislature to pass a state budget that allows Californians access to essential health care, and we call on our elected leaders to continue their work on comprehensive health care reform."
Basics of the California Academy of Family Physicians Emergency Loan Program
Applicants must meet these criteria and complete the following documents:
- Active CAFP member;
- More than 33 percent Medi-Cal patients in the practice;
- Loan application, with tax ID and Medi-Cal provider number;
- Signed promissory agreement.
Description of the emergency loans:
- $7,500-$10,000 per member, one-time only;
- Repayment deadline of December 31, 2008;
- 3 percent interest/loan fee to cover CAFP handling and processing;
- Loan payable in entirety by 31 December 2008 unless by prior arrangement; approval may be granted for an extension of 3-6 months.
For more information and an application form, physicians can visit FamilyDocs or contact Susan Hogeland or Shelly Rodrigues at 415/345-8667 or shogelandfamilydocs or srodriguesfamilydocs.
About the California Academy of Family Physicians
With more than 7,000 members, including practicing family physicians, residents in family medicine, and medical students interested in the specialty, CAFP is the largest primary care medical society in California. Family physicians are trained to treat an entire family's medical needs, addressing the whole spectrum of life's medical challenges. FPs serve a broad base of patients in urban, suburban and rural areas, often in California's most underserved areas.
California Academy of Family Physicians