Chemotherapy and the sequestration

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Pattycake25

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Inspired by a letter my classmate fired off to the WH, I looked around and found this.

http://www.cbsnews.com/8301-201_162-57578288/sequester-cuts-hit-elderly-cancer-patients/

"A one-month course of chemo for one patient could cost $10,000. Medicare reimbursement will now fall about $200 short."

I'm not sure how to view this information. I suspect that "cost" to the clinic of 10K also includes physicians' salaries, but assuming that's the first piece to absorb the blow (since everything else is less flexible), 200 less per patient is devastating. But I simply have no clue how chemo clinics operate. Can someone with any insight explain if this piece is realistic, or is it oversimplifying things? Is my reasoning flawed?
 
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