diagnostic imaging reimbursement in the Deficit Reduction Act (DRA) of 2005," Sayre said. "Those cuts didn't take effect until January of this year and providers are only now trying to manage that loss.

"Congress could have accepted the recommendations of its own experts at the Medicare Payment Advisory Commission and implemented significant changes that would have improved quality and safety and reduced expenditures," Sayre said. "Instead, the pending policy in the CHAMP bill will have a negative impact on patients." "Providers in rural areas and those making investments in state-of-the-art equipment will be hard pressed to continue their services at the same level - or at all. Because of the DRA cuts, many are consolidating facilities or even closing their doors."

In addition to further rate cuts, the legislation fails to include any additional quality standards for the professional component. AQI has proposed legislation to impose quality standards on all providers, including physicians.
CHAMP Impact on Imaging Summary
The new legislation (CHAMP):

-Places imaging in a mini-Standardized Growth Rate (SGR) physician-paymentsilo with a capped growth rate equal to GDP; in addition, each silo has to absorb the deferred SGR cuts in the future. AQI is still unsure as to the overall economic
impact of this provision, but believes it will be a reduction of approximately 14 percent;
- Raises the utilization rate to 75 percent and directs CMS to use the prevailing interest rate. Both changes are arbitrary and unsubstantiated by any analysis;
-Imposes a 33 percent reduction in payments on contiguous body parts. This will cost providers about $84 million a year;
-Creates a disallowance on global billing; which will hurt IDTFs in particular; and
-Requires accreditation for all imaging equipment - but not for physicians. This means imaging facilities will be required to meet new and unspecified national standards, but physicians who administer imaging services will NOT be required
to meet the new national standards.

The Association for Quality Imaging (AQI) is the 10-year-old professional trade association representing hundreds of diagnostic imaging centers across the United States.

(See other Medicare news from AMA at DM 4818, just enter the code in the search box at the top of the screen).

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