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Impact of Omnibus Bill on the Medical Imaging Industry

Federal Government to withhold Medicare reimbursements if Digital X-Ray transition requirements are not met

 

Orange County, CA - June 9th 2016 - When President Barack Obama signed the Consolidated Appropriations Act of 2016 last year, impending changes to the healthcare industry began to take foot. Although many rejoiced at the two-year medical device tax memorandum, others are being pushed to implement digital X-Ray upgrades.

If healthcare providers fail to transition from analog X-Ray and computed radiography (CR) to digital X-Ray by 2017, their subsequent Medicare reimbursements will be reduced. An estimated 8,000 CR units currently in service will be affected by the legislation.

Designed as a stopgap measure, CR units allow those with analog X-Ray modalities to convert images into a digital format for PACS. This process makes analog X-Rays more space-efficient and less time intensive then it was originally. CR readers work by saving X-Ray exposures onto a cassette, which is then rendered digitally before either being stored or transferred.

While CR readers make analog X-Ray imaging faster, digital X-Rays are advantageous with their consistency and time efficiency. Whereas digital X-Rays capture images in seconds and produce high resolution images, a CR reader requires processing before image quality can be determined. Many healthcare providers see the steep cost of digital X-Rays systems as a barrier, but this issue is to be mitigated with the reduced Medicare reimbursement changes.

Those on the Physician Fee Schedule (MPFS) and Hospital Outpatient Prospective Payment System (HOPPS) will receive less Medicare aid per imaging procedure if analog X-Ray or CR is utilized. Beginning in 2017, analog X-Rays printed on film will set a hospital back 20 percent per Medicare reimbursement. CR procedures, on the other hand, will see decreased payout on a staggered scale. It will be first cut by 7 percent from 2018 to 2022, before increasing to a 10 percent reduction in 2023 and all subsequent years.

Ampronix understands the delicate balance between providing optimized care while maintaining a budget. CR readers are less cost intensive in terms of equipment, installation, and maintenance. Although there are a host of benefits associated with digital X-Ray systems such as rapid results, many have not been able to make the shift due to financial constraints. A viable solution is opting for a refurbished system, which gives healthcare providers the opportunity to individualize modality systems.

For instance, the Modalixx display series consists of universal LCD peripherals that are compatible with X-Ray modalities. The series is comprised of three monitors; one for monochrome DICOMM display, and two that can exhibit both black and white and color images. With a variety of mounts and stands available, Modalixx displays can easily fit into any digital X-Ray system.

In addition to the Medicare reduction changes, the legislation also includes a provision to substantially reduce the multiple procedure payment reduction (MPPR) from 25 percent to 5 percent. This comes as a huge win for radiologists who are financially rebuked for interpreting multiple imaging procedures from the same patient in a single day—an arbitrary distinction for a reimbursement cut. After four years of advocacy on the part of the American College of Radiology, the reduced reimbursement will be effective January 1, 2017. The Congressional Budget Office expects this policy to return millions of dollars to radiology specialists over the next ten years.

Although there is no mandate for hospitals to convert over to digital radiography, they must make the choice to either continue using their current equipment and absorb the losses, or cut into a predesignated budget to upgrade existing technology in order to avoid reduced federal aid.

Ultimately, this dilemma is predicated on the trade-offs of purchasing a digital X-Ray or losing reduced Medicare reimbursement. As policy shifts take hold over the next few years, however, it is salient to understand how pertinent legislation will affect a healthcare provider’s operations. 

Contact Ampronix:

Media Contact: Jamie Nguyen 

Email: [email protected] 

International Sales: +1 949-273-8000

Domestic Sales: 1800-400-7972 for US and Canada

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About Ampronix

Ampronix is a renowned authorized master distributor of the medical industry's top brands as well as a world class manufacturer of innovative technology. Since 1982, Ampronix has been dedicated to meeting the growing needs of the medical community with its extensive product knowledge, outstanding service, and state-of-the-art repair facility. Ampronix prides itself on its ability to offer tailored, one-stop solutions at a faster and more cost effective rate than other manufacturers. Ampronix is ISO 13485:2003, ISO 9001:2008, and ANSI/ESD S20.20-2007 certified.

 



This post first appeared on Ampronix Medical News, please read the originial post: here

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Impact of Omnibus Bill on the Medical Imaging Industry

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