Expand HPSA bonus payments for psychiatrists
Recommendation
Congress should expand Medicare’s Health Professional Shortage Area (HPSA) Physician Bonus Program to increase bonus payments for psychiatrists who practice in shortage areas.[1]
Background/summary
The Health Resources and Services Administration (HRSA) projects a 20 percent decrease in the supply of adult psychiatrists by 2030.[2] At the same time, a three percent increase in demand is expected.[3] To encourage psychiatrists to practice in Health Professional Shortage Areas (HPSAs), Medicare’s HPSA Physician Bonus Program pays a 10 percent quarterly bonus to physicians, including psychiatrists, who provide Medicare-covered services in health shortage areas across the country.[4][5] However, with growing provider shortages, increased payments are needed to continue to incentivize psychiatrists to provide services to communities facing the highest need. In its 2022 Mental Health Workforce Enhancement Discussion Draft,[6] the Senate Finance Committee proposed such an increase.[1]
citations
1. U.S. Senate Committee on Finance. “Bipartisan Mental Health Care Provisions.” Last Accessed July 31, 2023.
2. U.S. Department of Health and Human Services, Health Resources and Services Administration. Behavioral Health Workforce Projections. Last Updated August 2022.
3. Ibid.
4. U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services. Physician Bonuses. Last Updated July 28, 2023.
5. U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services. Fact Sheet. Health Professional Shortage Area Physician Bonus Program. Last Updated June 2022.
6. U.S. Senate Committee on Finance. Wyden, Crapo, Stabenow, Daines Unveil Mental Health Workforce Enhancement Discussion Draft (Press Release). Last Accessed July 31, 2023.