Facility Management

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Over the past year, many payers and utilization management companies have been looking at accreditation and certification. Large payers, such as United Healthcare, Aetna, and Blue Shield (and soon Blue Cross), require the outpatient facility and its equipment to meet the American College of Radiology requirements at the risk of losing their contracts. These requirements can be demanding, as seen in the Blue Shield list for MRI or CT, according to Guidelines for Providers Performing Imaging Procedures: Blue Shield of California.

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RadNet breaks into the black Fonar sells another Upright MRMerge Healthcare faces delistingVarian board member resigns

Business Briefs

Deficit Reduction Act spurs PACSMerge delays 2Q resultsIMV report examines prostate cancer treatmentStereotaxis revenues rise, loss widens Acusphere loss narrows

Radiologists may not be in such hot demand as years past, but those who are working command larger salaries than ever. Physician recruiter Merritt, Hawkins & Associates found that demand for the new placement of radiologists has slipped more than 20% compared with 2006. On the brighter side, average and starting salaries rose, staffing incentives show an all-time high, and some radiology subspecialties are in high demand.

After absorbing the details contained in 924 pages, analysts are finding reasons for both optimism and caution regarding the proposed 2008 Physician Fee Schedule from the Centers for Medicare and Medicaid Services. Radiologists may immediately focus on its 9.9% rate reduction, but the mammoth document also lays out sweeping reforms covering the hot points of alleged kickback and self-referral abuses.

Business Briefs

North American Scientific plans divestitureAlliance Imaging slips under federal axVolcano revenues rise, shares drop

The Children’s Health and Medicare Protection Act of 2007 may look like straightforward legislation to reauthorize a popular healthcare insurance program for poor children, but major reforms directed at medical imaging and the healthcare system as a whole are embedded in the bill passed by the House of Representatives Aug. 1.

Big-ticket items are suffering this year as reimbursement cuts resulting from the Deficit Reduction Act have had a wider and longer lasting effect than initially expected. Particularly hard hit has been PET/CT. The hybrid juggernaut had defied the odds for several years, marching forward with ever higher sales despite utilization rates at individual sites that allowed plenty of unused capacity.

Vendors of CT and MR equipment are taking it on the chin. A sales slump in the U.S., which began in the second half of 2006, has continued through the first half of 2007 on the heels of diminishing demand from imaging centers. The problem stems from reimbursement cuts brought about by the enactment this year of the federal government's Deficit Reduction Act and the chilling effect these cuts have had on purchases by outpatient facilities.

The Deficit Reduction Act of 2005 and the resulting decrease in Medicare's reimbursement schedule could result in as much as a 25% to 45% reduction in revenue for outpatient imaging practices, according to industry sources.1 Faced with such a potentially drastic scenario, many practice owners are reevaluating the very viability of their imaging operations.

Interventional radiology is growing rapidly as a subspeciality. The presence of a state-of-the-art interventional service within a radiology department will have a significant impact on that department's staffing, training, logistics, finances, and resources. Ongoing turf battles will also require substantial involvement from department heads.

Radiologists could be shortchanged if Medicare goes through with plans announced Monday to end its long-standing policy of paying separately for imaging contrast media, radiopharmaceuticals, interventional radiology supervision, and interpretation.

As imaging centers across the country fall behind on equipment payments, they are getting calls from workout groups. We’re not talking gym memberships here. These groups try to recoup lost revenues from notes in default and are being used more than ever in the radiology finance world. During the past few months, I have spent a good portion of my time speaking to finance vendors involved in attempting to salvage centers. It is frightening to see the washout of once-profitable centers, as they fall victim to the draconian cuts in Medicare reimbursement resulting from the Deficit Reduction Act.

Despite heated interest in cardiac CT, echocardiography continues to anchor the diagnosis and evaluation of coronary artery disease for most clinical practices. Echo possesses prognostic as well as diagnostic power, as demonstrated in a large Weill Cornell Medical College study. It found strong correlations between wall motion abnormalities detected during echocardiography and risk for cardiovascular death. On the cardiac CT front, more research investigating its clinical utility and radiation exposure was reported.

Business Briefs

Philips Medical slips on DRA impactRefurbisher inks agreement to distribute radiotherapy equipment

Blue Cross Blue Shield of Michigan and Blue Care Network are partnering with Michigan hospitals to examine whether coronary CT angiography, under certain circumstances, can be used as a complement or replacement for cardiac catheterization.

The Centers for Medicare and Medicaid Services has initiated a national coverage analysis to evaluate the available evidence for coronary CT angiography. As part of the effort, the agency on June 13 asked practitioners to submit comments. If the remarks so far are any indication -- and if CMS listens -- coronary CTA will have no problem securing Medicare reimbursement.

Acting in their capacity as medicine's designated custodians for issues involving ionizing radiation, radiologists defined strategies this year to address the dangers accompanying the explosive growth in the number of medical procedures that require ionizing radiation.