AMA: U.S. healthcare crisis worsens amid cuts, visa delays, AI denials
ILLINOIS, UNITED STATES — The American Medical Association (AMA) is sounding the alarm over a mounting healthcare crisis fueled by plummeting Medicare reimbursements, politicized research cuts, and immigration bottlenecks blocking foreign-trained physicians.
Dr. Scott Ferguson, a member of the AMA Board of Trustees, warns that without urgent reforms, patient access and medical innovation will suffer irreparable harm.
“We are a healthcare system in crisis,” Ferguson told Health Exec.
“We are in a crisis with healthcare research, administrative burdens, and with payment. Access for our patients is hurt. The future with research is hurt because researchers are being told what they can and cannot research and we are losing the brain trust with people who have been in healthcare for 30 years. It is the American people who will suffer from not having access to the research or the care,” he further explained.
Medicare payment cuts threaten patient access
Medicare reimbursements have declined by more than 30% since 2000, while practice costs—encompassing staff salaries, supplies, and overhead—continue to rise.
Dr. Ferguson, a diagnostic radiologist, warns that the lack of inflationary adjustments is forcing closures, particularly in rural and underserved areas.
The payment crisis isn’t just a financial issue—it’s a looming access disaster. Ferguson notes that the United States already faces a severe physician shortage, and dwindling reimbursements are accelerating retirements and practice shutdowns.
“It’s about patients losing care options, not just doctors keeping doors open,” he said. Without policy intervention, the system risks collapsing.
Private equity takeovers drive up costs
Independent practices are vanishing as hospitals and private equity firms acquire them, often charging higher rates for identical services.
Private equity’s profit-driven model also disrupts the continuity of care. Ferguson, a self-described “solo radiologist, which is either a dinosaur or on the leading edge,” highlights how consolidation reduces competition and patient choice.
The AMA warns that without regulatory checks, corporate ownership will further inflate healthcare spending while undermining physician autonomy.
Research cuts and DEI rollbacks stifle medical innovation
Agencies, such as the NIH, CDC, and FDA, have had their federal grants reduced, and grants considered diversity, equity, and inclusion (DEI) initiatives have been immediately canceled. This situation has affected Ferguson’s daughter, a health equity researcher, who lost all her funding overnight.
There are also threats to the United States‘ long-term competitiveness due to the cuts. Ferguson emphasized that the country needs the best minds, regardless of their background.
These policies pose a threat to the future of medicine because they limit research sources and discourage global talent, which in turn compromises patients’ lives.
Visa delays for foreign doctors exacerbate physician shortages
The issue is that 25% of physicians practicing in the U.S. are International Medical Graduates (IMG), and these doctors are currently in visa limbo, preventing them from starting their residencies this summer.
Ferguson cautions that a doctor shortage will increase as a result of an immigration logjam, with most IMGs unable to enter or travel. He said that families are torn apart, and empty slots are found in hospitals when it comes to residency.
The bottleneck strains an already fragile system. IMGs often fill critical gaps in primary care and underserved regions. Blocking their entry, Ferguson argues, harms both patients and the healthcare workforce pipeline. The AMA urges expedited visa processing to avert a July crisis.
Prior authorization and AI denials increase barrier to care
Insurers’ prior authorization demands delay or deny care, pushing patients toward costly emergency visits. Ferguson notes that radiology patients, for instance, often resort to ERs for scans insurers initially reject, tripling system costs. The AMA has helped pass reform laws in 14 states but insists federal action is needed
Meanwhile, AI-driven denials lack transparency. “AI is going to probably just automatically deny everything. We believe in transparency. We want to know what’s inside the black box, what causes a denial,” Ferguson said. The AMA demands oversight to prevent opaque algorithms from overriding medical judgment. Without safeguards, patients face dangerous care delays.
