Independent Diagnostic Testing Facilities

February 16th, 2007 | Medicare

CMS issued guidance January 26, 2007, that could have a dramatic impact on independent diagnostic testing facilities (IDTFs) and other providers. Although there are a variety of changes scheduled to be implemented at the end of February, the most significant one appears to be that shared facilties – e.g., where a provider group rents the facility for a specified number of days per week – would be prohibited. This change could be aimed at leasing structures intended to nominally fit into the In-Office Ancillary Services exception under the Stark regulations.

This is but one more strategy aimed at reigning in the explosion in high-tech imaging utilization and is another example of what the panel in the BVR February 8 Teleseminar highlighted: the government giveth and taketh away. When valuing any health care provider, rapid increases in utilization should serve as strong evidence that cutbacks are in the offing.

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