The economy has been unkind to many, but one group that has been hit surprisingly hard in recent years is physicians. According to CNN, an increasing number of doctors have been pushed into bankruptcy over the past several years, sometimes having to close their practices as a result of the bankruptcy filing.

Our Columbia, SC bankruptcy attorneys know that bankruptcy is something that can happen to anyone. Physicians who are struggling with a practice that is drowning in debt should not be afraid to get the legal help they need to move forward with bankruptcy proceedings and to take advantage of the protections that are available under the law.

More Doctors Driven to Bankruptcy

In the United States, medical practices are generally for-profit businesses, and they often have a high overhead. Doctors need to pay for lab equipment, offices, staff and medical malpractice insurance.

Unfortunately, many of the fixed costs of running a medical practice are increasing. Doctors are coping with higher medical malpractice insurance costs and higher expenses for drugs and other business necessities. Changing regulations are also putting pressure on doctors and are resulting in larger expenditures for running a medical practice.

Unfortunately, as costs are going up, income is going down. Medicare payments to physicians are continually being reduced or threatened with reductions as the government works to curb costs and get the national debt under control. Private insurance companies are also dropping physician reimbursement amounts, led by the cuts in government payments for medical services.

The poor economy, of course, is also having an impact on the ability of patients to pay for medical help. With higher unemployment rates, fewer people have insurance and are able to seek routine medical care or pay for expensive treatments. Higher unemployment and stagnant wages also make it harder for people to pay out-of-pocket costs and co-pays, regardless of whether they have insurance.

With more concerns about money, people are also more reluctant to consider any type of elective medical procedure.

All of these factors are causing doctors and medical practices to face significant financial struggles. CNN indicates that these problems are not isolated to any specific field of medical professionals. Even specialists such as oncologists, OB/GYNS and orthopedic surgeons are having difficulties staying afloat. The larger point illustrated is that no one is immune from economic pressures and realities.

Considering Bankruptcy?

Doctors who are facing debt struggles may have a number of different options for bankruptcy depending upon how their medical practices are organized and depending upon the amount of debt they have.

In some cases, it may be possible to keep the practice running while renegotiating debt through bankruptcy. In other cases, liquidating the practice may be necessary. A bankruptcy attorney can help physicians to understand what their options are for bankruptcy. An attorney can also help physicians to understand what impact, if any, a bankruptcy will have on their personal finances if the practice is going bankrupt.

Resolving these issues is important as soon as the practice starts to struggle with debt. Doctors shouldn’t hesitate to get help, as the trends show they are not alone with their financial struggles.

If you are considering bankruptcy, contact the Columbia, South Carolina law firm of Matthews & Megna today at 877-253-7705.