There is a point in this discussion that is being uniformly missed in the press. Physicians pay their overhead out of their reimbursement. Physicians have to pay their office staff salaries, billing expenses, rent, insurance premiums, supplies, and all other expenses out of this reimbursement. For every dollar paid to a physician overhead is about 60-70% of that reimbursement. A physician pockets about 30-40% of total Medicare reimbursement as personal income, after expenses. This means that a 27.4% reduction in physician reimbursement actually represents a 70-97% reduction in personal income for physicians.

-- creedwait, Medicare back on the brink over cuts to doctors

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