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MACRA & MIPS Penalties: How Doctors Are Leaving Money on the Table Every Year

Medical Billing Compliance
doctors leaving money on the table

In today’s healthcare landscape, compliance isn’t just about avoiding penalties — it’s about securing the reimbursements your practice deserves. Yet, year after year, thousands of doctors lose significant revenue simply because they aren’t fully aligned with MACRA (Medicare Access and CHIP Reauthorization Act) and MIPS (Merit-based Incentive Payment System) requirements.

And here’s the shocking truth: many don’t even realize it until the penalty hits.

What Are MACRA & MIPS Really About?

  • MACRA established new payment models to reward quality care over volume of services.
  • MIPS, one of the key tracks under MACRA, adjusts Medicare payments based on performance in four areas: 
    1. Quality
    2. Cost
    3. Improvement Activities
    4. Promoting Interoperability

 

If your practice doesn’t report these correctly (or at all), Medicare can reduce your reimbursement by up to 9%.

The Hidden Cost of Non-Compliance

Let’s put this in perspective:

  • A small practice earning $1,000,000 annually from Medicare patients could lose $90,000 in a single year.
  • Miss reporting for just three years, and that number skyrockets to $270,000+ lost revenue.

 

These aren’t small penalties — they’re silent revenue leaks that directly hit your bottom line.

Why Doctors Keep Missing Out

  1. Complex Reporting Requirements – The rules change almost every year, and many in-house teams don’t keep up.
  2. Underestimating the Risk – Practices think “a few missed reports won’t matter,” until penalties arrive.
  3. Lack of Technology – Without EHR optimization and compliance tools, errors are inevitable.
  4. Staff Overload – Clinical staff often juggle compliance tasks on top of patient care, leading to mistakes.

The Opportunity Few Talk About

Here’s the flip side: meeting MACRA & MIPS benchmarks doesn’t just help you avoid penalties — it actually boosts your reimbursements.

Top-performing practices can earn bonus incentives for exceeding performance thresholds. Meaning: compliance isn’t just defense — it’s offense.

How to Stop Leaving Money on the Table

  • Audit your current reporting process: Are you tracking all required metrics?
  • Automate where possible: Use billing and reporting systems that align with CMS updates.
  • Train or outsource: Don’t leave compliance in the hands of an already overwhelmed in-house team.
  • Partner with experts: Specialized RCM companies (like Revenue Care MD) focus on keeping your practice compliant and maximizing reimbursements.

Frequently Asked Questions

MACRA is a law that reformed Medicare payments, while MIPS is a performance-based payment program under MACRA.

Non-compliance can reduce Medicare reimbursements by up to 9% each year.

Because of complex rules, frequent updates, lack of staff training, and limited compliance tools.

Yes, even small practices earning $1M annually can lose $90K in a single year due to non-compliance.

No, exceeding benchmarks can bring bonus incentives and increase reimbursements.

By auditing reporting processes, using updated EHR/billing systems, training staff, or outsourcing compliance tasks.

Yes, RCM experts handle compliance, reduce errors, and ensure practices maximize reimbursements while avoiding penalties.

Final Thoughts

MACRA and MIPS penalties are the silent killers of medical practice revenue. But they don’t have to be. With the right systems and support, doctors can transform compliance from a burden into a profit-generating opportunity.

Every year you wait, you’re leaving thousands — even millions — on the table.

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