As imaging center operators sort out their case mix to determine the potential impact of the DRA on revenue, Wall Street has already weighed in with its prognosis. Since the Senate passed the bill in late December, the Radiologix (Amex: RGX) stock went into a slide, losing 51% of its value by February 9: it has since begun the climb back. The day after President Bush signed the bill into law, the national provider of diagnostic imaging services announced that it expected the new law to have a significant impact on the company’s business and financial condition.

Medicare revenue represented 26% of the company’s imaging center revenue in 2005. Based on the provisions in the new law, Radiologix is predicting a $13.3 million hit in 2007. The fee schedule change is expected to produce a $10.4 million reduction, whereas the contiguous body part debit at the full 50% is projected to result in a $2.9 million cut.

Sole survivor of the physician practice management trend of the mid-1990s, Radiologix has been buffeted by high winds on Wall Street since going public in 1997. (Radiologix Redux) Could be the reason why, given the choice between Wall Street and Main Street, no other radiology provider has again ventured into the public domain.

The American Medical Association (AMA) took many specialty societies by surprise this week with the announcement of its pact with Congress to develop more than 100 standard measures of physician performance in 34 clinical areas. According to the pact, physician groups will have developed performance metrics to cover most of the services paid for by Medicare by 2007.