Picture this scenario. A critical industry, with high barriers to entry, under extreme pricing pressure, decides to stop accepting certain low-margin customers.
Must be electronics assembly, right? Think again.
The medical profession is encountering many of the same problems as we in electronics experience everyday. As noted in The Huntsville (Ala.) Times, doctors are refusing to see new Medicare patients because, the story says, â€œ[doctors] are fed up with the program’s payment formula. According to the report, the government-funded Medicare program is scheduled to cut physician payments by 9.9% in 2008.
It goes on to quote the local medical society president, who asks, â€œWhy would you accept a payment plan that every year threatens to cut you three to 10%? â€¦ We want to take care of our patients, but we’re also running small businesses and have to be able to pay our employees.”