Provider advocates have warned that the Trump administration’s proposed 9% Medicare payment cuts for physical and occupational therapy could send some companies out of business.

In addition, speech-language pathologists would face a 9% decrease, while audiologists would see a 7% trim. The cuts were contained in the federal government’s Proposed Physician Fee Schedule Rule for 2021, which was released on Aug. 3. 

“If implemented in its current form, these cuts could drive physical therapy providers out of business, particularly those who deliver care to underserved minority communities and older Americans — two populations that have already been disproportionately impacted by the public health emergency,”  said Nikesh Patel, PT, executive director of the Alliance for Physical Therapy Quality and Innovation, in a statement.

Industry stakeholders expressed wide concern after the Centers for Medicare & Medicaid Services released its 2021 PFS proposed rule, which would become effective Jan. 1, 2021.

“We are deeply disappointed that — despite unified warnings from lawmakers, specialty providers and other stakeholders about the potentially devastating impact of these cuts in the midst of a global pandemic — CMS nonetheless chose to move forward with Medicare specialty reimbursement reductions in 2021,” Patel added.

The American Health Care Association also expressed disappointment in the proposed reimbursement cuts for therapy services but showed optimism about a proposal to permanently adopt some telehealth expansions from the COVID-19 pandemic under the same rule.