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November 29, 2005    Volume 1, Number 1 << back to Imaging Center Institute
 
 
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The New Deal

Beginning January 1, 2006, imaging centers and in-office providers of imaging will collect 25% less on the technical component for most MR/MRA, CT/CTA, and ultrasound studies conducted on contiguous body parts. Transvaginal and ultrasound of the breast were spared the contiguous-body-part discount, as were hospital-based imaging centers paid under the Hospital Outpatient Prospective Payment System. The HOPPS reprieve is likely to be short-lived, however, as CMS announced its intention to thoroughly investigate the potential cost efficiencies in the imaging of contiguous body parts in 2006. CMS will also investigate whether the originally proposed 50% reduction is in order. Further cuts could be in the cards, both for freestanding and hospital-based outpatient imaging centers.

Click here to learn more about this issue:
www.cms.hhs.gov/media/press/release.asp?Counter=1709
www.cms.hhs.gov/media/press/release.asp?Counter=1711
www.acr.org/s_acr/doc.asp?CID=2540&DID=22790

 
At Cross Purposes

As health care costs rise and imaging leads the way, payors clearly have targeted radiology as an opportunity to slow growth. Beset by reimbursement cuts, other specialties see imaging as a way to add ancillary income and the Stark in-office imaging carve-out as the door to that opportunity. Organized radiology is lobbying Washington to emphasize the relationship between self-referral and overutilization of in-office imaging. The American Medical Association opposes any measure to limit in-office imaging. In its report to Congress last March, MedPAC proposed instituting quality measures for all facilities and practitioners. Meanwhile, Congress has steered clear of the inter-specialty strife.

  "For them to say they're going to reduce reimbursement for contiguous body imaging without first giving any value to what the true expenses of the procedures are is very unusual. It's out of character for CMS to do this."  
  Christie James, Radiology Billing Manager
Massachusetts General Hospital, Boston
 

For an update on the highly charged legislative atmosphere, see the article Imaging in the Crosshairs.

Click here to read the MedPAC March 2005 report to Congress

 
Putting the Ship in Shape
In light of the new rule, imaging centers would be well-advised to tighten up operations, particularly in the MR and CT modalities. Focusing on the key components of patient throughput offers the ability to increase revenue without adding technology.

For a thoughtful review, see Benchmarking MRI Operations.
 
Related Reading

Operational Efficiency in Imaging Centers: Benchmarking as a Strategic Tool
Key Indicators in Managing Accounts Receivable
In Praise of ABC Accounting

 
 
 
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  Not surprisingly, competition has a subduing effect on hospital and physician prices nationwide, which are all over the map.
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  Who Are Those People at Your Center?  
  Are they clients? Customers? Patients? A new study asserts they overwhelmingly prefer the latter designation.
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  Radiation Exposure: Rising Concern  
  Authors of an AJR study encourage lower doses and nonionizing radiation alternatives to limit female breast exposure during pulmonary CTA.
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  FDA Clears GE’s Brightspeed  
  In early 2006, GE will market a new, smaller version of its LightSpeed CT in 4-, 8-, and 16-slice systems.
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  MEDRAD Simplifies
MR Infusion
 
  Next-generation Continuum MR Compatible Infusion System simplifies MR infusion and increases the selection of drugs that can be infused.
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  IBM Express Storage  
  MI Express is a new, scalable, prebundled archive infrastructure designed for sites that do from 20,000 to 100,000 exams per year.
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  Siemens Unveils Dual-Detector CT  
  The company has retooled CT with its new SOMATOM Definition CT optimized for cardiac/trauma/ oncology.
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