Anatomy of a Pay Cut

My initial reaction was to flinch and move on, like a punch-drunk fighter, when I heard about the 90% assumed equipment-utilization rate in the omnibus bill intended to avert the fiscal cliff. Instead, I bear witness to the latest in a series of cuts to the technical and professional components...

Proposed CMS Changes to the Cost-of-capital Assumption: Analysis

For 2012, CMS proposed a reduction in the cost-of-capital (or interest-rate) assumption used in the development of the cost-of-equipment estimates that are included in the practice-expense component of the RVU calculations. Historically, CMS has used an interest-rate assumption of 11%. Based on the current prime rate and maximum interest rates for...

The 2012 Hit List: Code Pairs That Meet the 75% Threshold

Radiology first felt the effects of the bundling initiative launched by CMS in 2010, with the creation of combined CPT® codes for myocardial perfusion, wall motion, and ejection fraction (78451–78454); arteriovenous shunt dialysis-catheter procedures, along with radiological supervision and interpretation (36147 and 36148); and facet-joint injection procedures that include imaging guidance (64490–64495).

The Great CT Bundling Heist of 2011

Medicare is looking for misvalued imaging codes—and it has already found several for which it has reduced payment. Its efforts have dismayed radiologists. Facing more revenue losses from CMS and the private insurers that follow in the agency’s footprints, radiologists feel targeted and, as a specialty, misvalued...

The Triple Threat of Bundling Codes

Radiology’s existing coding structure is undergoing a dramatic transformation, which is the product of numerous code screens being used by CMS and the RVS Update Committee to identify potentially misvalued services. The application of these code screens often results in the conversion of old codes to new codes....

Your Undivided Attention

The June 2011 MedPAC Report to the Congress1 has the undivided attention of the entire specialty, just days after its release—for good reason. Pages 27 through 59 detail the commission’s recommendations to curtail further the amount of imaging occurring in medicine and to redistribute professional income from image-reading specialties to...

Reimbursement Outlook for 2011: Trouble on the Way

On November 30, the Physician Payment and Therapy Relief Act of 2010 was signed into law, delaying the 23% Medicare physician-payment cut mandated by the sustainable growth rate formula. The legislation replaced the cut with a 2.2% update through December 31, with the intention of giving Congress time to find a more permanent solution....

The Good-news, Bad-news Economic Scenario

The list of entities with imaging in their crosshairs goes on and on, but when it comes to eroding reimbursement and enhancing oversight, the current primary culprits are CMS and Congress, according to Maurine Spillman-Dennis, MBA, MPH, director of economics and government relations for the ACR®. In the “ACR...

Perspectives
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Curtis Kauffman-Pickelle
Video: Influence and Leadership
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Cheryl Proval
The Jig is Up
More Reimbursement Articles

DRA II: CMS Proposes Slashing the Technical Component Again

A proposed 90% equipment-utilization formula and brand-new lowball practice-expense data courtesy of the AMA will deal radiology a new round of cuts comparable to those contained in the DRA. The specialty faces dramatic cuts to the technical component in the proposed 2010 Medicare Physician Fee Schedule (MPFS), and these have triggered...

OIC Reimbursement: The Multipronged Attack

In an illustration used for hospital clients, analyst Shay Pratt pinpoints imaging centers for sale around the country: four independents on the market in California, a four-center chain in Kansas, and a larger chain in central Florida with an asking price of $22.5 million. The list, with size and price...

MSDRGs: Pitfalls and Opportunities

Ernest Glad, president of Cortell Health, Dallas, Texas, sees the 2007 CMS restructuring of the DRGs used in the inpatient prospective-payment system as an opportunity that many hospitals are currently squandering. The restructuring adjusts DRG weights based on the severity of a patient’s condition to improve the system...

Further TC Cuts Ahead?

Due to inequities in payment methodology, are providers of imaging services overpaid?

That question is raised, along with others, in a provocative article by Winter and Ray,¹ two analysts for the Medicare Payment Advisory Commission (MedPAC), that was published in a recent issue of Health Affairs. In...

Revised Anti-markup Rule: CMS Gets Creative

On November 19, 2008, CMS issued the Medicare Physician Fee Schedule (MPFS) for calendar year 2009. Consistent with the CMS trend of introducing substantive regulatory changes in payment rules, the MPFS Rule contained a number of significant revisions, including the closely watched anti-markup provisions applicable to diagnostic services other than clinical diagnostic...

The Dynamics of Reimbursement and High-quality Care

Access to high-quality patient care is a cornerstone of customer-focused service delivery, Michael A. Silver, PhD, says. In turn, that goal is supported by technology that enhances performance and allows the imaging provider to do more with less. Part of making less go further is maximizing reimbursement through better...

Proposed 2009 MPFS: Once Again, Imaging Takes a Disproportionate Impact

In what seems to be becoming as much a harbinger of summer as fireworks or cookouts, on July 7, 2008, CMS published its proposed Medicare Physician Fee Schedule (MPFS) payment update for the next fiscal year. Once again, it includes a number of provisions intended to address CMS concerns about the...

CT Colonography: Ready for Prime Time

On June 18, 2008, a letter was sent to the CMS Coverage and Analysis Group seeking approval of CT colonography (CTC) as a generalized screening tool for colorectal cancer among asymptomatic Medicare patients 50 years of age or older. The letter itself was a calm recitation of years of evidence collected through...

Radiology Income Distribution: From Salary to Independent Practice to Megapractice

A CPA offers his perspective on the past and future of radiologist compensation, based on 30 years on the business side of radiology

Hospital-based physicians (radiologists, anesthesiologists, and pathologists) were either compensated as salaried employees or were members of unincorporated entities paid by the hospital well into the 196...

Contract Evaluations: The Devil in the Details

An adage of the legal profession holds that if you’ve seen one contract, you have seen exactly one contract. That is never truer than when the contract in question is between an imaging center and a payor, even though 90% of the agreement’s language will have been cast...

Get Your CT Lung Cancer Screening at the Mall

One of the developments advocates for responsible screening of patients for lung cancer with low-dose CT specifically have warned about is screening occurring outside experienced facilities where patients can receive counseling about risks and benefits, as well as help reading their results. However, there is little they may be able to do to stop such practices


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