RT Journal A1 Schneeweiss R, Ellsbury K, Hart L, Geyman JP T1 THe economic impact of a primary care clinic-reply JF JAMA JO JAMA YR 1989 FD November 17 VO 262 IS 19 SP 2684 OP 2684 DO 10.1001/jama.1989.03430190064031 UL http://dx.doi.org/10.1001/jama.1989.03430190064031 AB In Reply.—  The issue raised by Dr Kolodzik is most appropriate and we appreciate the opportunity to respond.Indeed, the actual revenues derived from billings are dependent on the patient's insurance coverage, or lack thereof. The declining reimbursement levels for government-sponsored insurance programs, especially Medicaid, certainly affect the collection rate. At the time of the study, the overall collection rates, including contractual allowances, for hospital charges and professional fees were 86% and 60%, respectively.The issue of reimbursement notwithstanding, the article points out that a family practice (primary care) clinic can provide medical care at relatively lower cost and at the same time be a source of patients and revenues for the sponsoring hospital and its subspecialty consultants. In other words, it illustrates in concrete terms the value of a primary care referral base.