Survey shows Concerns over Reimbursement continue in Radiology

In November 2013, the Centers for Medicare and Medicaid Services’ final rule on the Medicare Physician Fee Schedule included significant reductions for frequent medical imaging procedures such as MRI and CT scans of the neck, chest and spine. DOT Med Daily News reported that after Jan. 1, 2014, the schedule took effect with cuts nearing 40 percent for some exams.

According to the latest survey conducted by the Medical Imaging Confidence Index, numbers show that concerns over reimbursement continue to grow for radiology administrators. The respondents conveyed a sense of decreased optimism when it came to being properly reimbursed by Medicare for their Diagnostic Radiology services.

Cuts affecting freestanding imaging
Some of the biggest reductions from the CMS dealt with decreasing the amount of time rooms would be used for scans. This resulted in standalone facilities that specialize in MRI and CT being the most affected by the reimbursement cuts.

“If you’re a multi-modality imaging center, the impact isn’t going to be as great. If a vast majority of your revenue is from CT and MR, you’re going to see much more of an impact,” said Michael Mabry, executive director of the Radiology Business Management Association, as quoted by DOT Med.

The study from the MICI surveyed 178 imaging and hospital managers, inquiring as to their opinions on five specific trends encountered by radiology administrators. Findings were gathered from facilities around the U.S. throughout the first quarter of 2014.

Lowest scores yet
The five trends being measured included a variety of topics that radiologists face, including:

maintaining/growing as a profit center
having access to capital for imaging equipment and IT needs
consistency of internal operating and staff costs
monthly growth in interventional and diagnostic imaging
receiving adequate reimbursement from Medicare for service

The findings showed that the average score for receiving proper substantial reimbursements was at an all-time low of 57, conveying very low confidence. However, some areas of the survey did experience improvements, such as having access to capital and growing as profit centers.

While facilities may be concerned with the cuts to reimbursements, there are cost-saving measures that can be taken to reduce the impact of Medicare reductions. For example, purchasing new Digital Imaging equipment capable of being retrofitted with disparate technology may help radiology practices reduce their spending. In turn, they could have an easier time navigating their revenues through cuts to payment schedules.

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