Illinois' budget impasse leads to 5% pay cut for SIU physicians

Physicians are taking a 5 percent pay cut to keep the lights on at Springfield-based Southern Illinois University School of Medicine. The cuts are due to a lack of state funding since July 1, in addition to the lack of reimbursements for healthcare services provided under the state's group health insurance plan, according to The State Journal-Register.

A total of about 240 physicians who are paid through SIU's nonprofit group practice, SIU HealthCare, will be impacted in addition to some nurse practitioners and physician assistants, according to the report. Some providers will be affected more than others. For example, faculty members' fixed salaries from the medical school will not change, but physicians who receive much of their total pay from patient care provided through the group practice will see a reduction, according to the report. Unfortunately for those affected, the pay cuts will remain in place until the state works out its current fiscal 2016 budget impasse, according to the report.

The school had already cut 12 percent of spending and not replaced open positions to account for missing the $38 million in state funds it normally receives, according to the report. However, the stalled reimbursements from the state's self-funded plans have loaded on an additional $3 million to that burden compared to fiscal 2015. The patients insured by state plans make up 7 percent of visits, but 29 percent of money owed, according to the report.

Plans such as Cigna Quality Care and the Coventry Health Care and HealthLink plans have suspended payments, though some payers, including Health Alliance and BCBS of Illinois, have voluntarily continued to pay for those covered by the state-funded plans for now, The State Journal-Register reported.

The school does not plan to make more pay cuts. However, it is prepared to potentially cut more than 100 positions under the proposed budget for fiscal year 2017, according to the report.

 

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