According to a study released Thursday, changes to Medicare, the federal health plan for the elderly will prove detrimental to important aspects of cancer care in the United States, as many cancer care centres have been losing money on patients, and some may be forced out of business due to the cuts.

The findings of the report commissioned by the Community Oncology Alliance, carry important implications for healthcare reform in Congress, as well as, requiring immediate attention from Medicare.

Dr. Davd Eagle from the group said, for some patients, particularly those in the rural areas, it could mean the closure of the nearest infusion clinic.

According to the American Cancer Society, cancer is diagnosed in 1.3 million Americans every year.

The alliance has been complaining about changes to the Medicare reimbursement plans, inadvertently cutting payments to cancer specialists.

Medicare pays for 56% of the expenses for delivering chemotherapy, but under the new rules, this 56% will go down by 20% to 45% by 2013.

As well, average practices were losing $500,000 a year, and many patients with private insurance were being charged more in order to make up the difference, which factors were threatening businesses, with some oncologist considering leaving oncology and going into internal medicine.