One more Nail in the Coffin for High Tech Imaging

March 8th, 2009 | Income Approach & Methods | Medicare | Regulatory Matters

The Medicare Payment Advisory Commission's Annual Report to Congress is out and here is what it has to say for Imaging: Congress should increase the equipment use standard for expensive imaging equipment from 25 hours to 45 hours per week. Given that the 25 hours represented a 50% utilization, the 45 hours raises it to 90%, well in excess of the 75% that had been kicked around last year in Congress.

This has truly dramatic implications for the viability of low volume imaging providers and particularly physician office-based imaging. It would signifcantly decrease the practice expense component RVUs and therefore the value under the Medicare Physician Fee Schedule (MPFS). Due to the Deficit Reduction Act's limiting nonhospital imaging reimbursement to the lesser of the MPFS or the HOPD, a code by code analysis would be needed to assess the impact on a particular provider.

And, you heard it from me or here first many times in both my AICPA National Conference Presentations, my BVR article on Delaware Open and in the BLOG posts below!

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