Dear Imaging Center Insider,
The Deficit Reduction Act of 2005, which prescribes massive cuts in Medicare reimbursement for diagnostic imaging, may well represent the biggest financial threat U.S. imaging centers have ever faced. And it's not just independent centers that will take the hit -- equipment manufacturers and aligned services will also see a reduction in revenue.
Depending on the source, estimates of the scope of the projected cuts for the five-year period starting in 2007 range from $2.8 billion to $6 billion. When applied to annual revenue, this could lead to an average reduction of 30% for some facilities. This will make it difficult for many centers to continue operations, let alone invest in new modalities, upgrades, or infrastructure.
But there is a ray of hope. Professional societies such as the American College of Radiology and the National Coalition for Quality Diagnostic Imaging Services are vigorously working to alleviate the more pernicious aspects of the Deficit Reduction Act before it takes effect next year.
If you'd like to find out more about the scope of the planned reductions, including which modalities and exams will be hit the hardest, click here. The article also includes a chart based on American College of Radiology data that describes the impact of the cuts on hundreds of medical imaging procedures. As an AuntMinnie.com Imaging Center Insider, you have access to the article days before the rest of our members.
If you have a comment or report to share about any aspect of diagnostic imaging practice, management, administration, regulation, or financing, please contact me at [email protected]. I look forward to hearing from you.
