Trying to Stop the Crisis: The Advocates

Tim Trysla, Esq., Executive Director of the Access to Medicare Imaging Coalition (AMIC) and Andrew Whitman, Vice President of Medical Imaging and Technology Alliance (MITA) have been at the forefront in bringing attention to the negative implications of the DRA. The AMIC, organized in 2006 in response to the DRA, has voiced concerns about reduced rural access for imaging services, reduced care for seniors, and delays in obtaining care.


The AMIC website encourages visitors to contact the elected official and oppose new cuts. The AMIC distributes its well-known "Moran Report," an early, in-depth analysis of the impact to providers and patients of the DRA imaging cuts. MITA is an organization of medical imaging equipment manufacturers and product developers. MITA also lobbies Congress to stop further cuts in Medicare reimbursement, and emphasizes the advantages in imaging for early diagnosis and prevention of unnecessary treatment. Congress has not ignored the fallout from the cuts. Bipartisan legislation has been introduced in the House and the Senate calling for a two-year moratorium on the medical imaging reimbursement cuts in the "Access to Medicare Imaging Act of 2007" (H.R. 1293), (S. 1338).

According to Trysla and Whitman, the reimbursement cuts have had such a dramatic effect that some centers are even returning equipment due to the high cost of upkeep and maintenance. The negative effect also shows up in declining sales of equipment. From there, advances in patient care will be slowed, and research and development within the OEMs will be on hold.

State-of-the-art facilities will be less available in already underserved areas. From a patient perspective, both organizations point out the DRA cuts hurt the value of imaging as a noninvasive diagnostic tool, where a patient can obtain an advanced diagnosis that would allow early treatment and the likelihood of a more positive outcome.

Seeing Opportunities in the Fray: The Pre-owned Markets

Some industry segments have found a benefit in the DRA cuts, notably the pre-owned equipment dealers and service providers. Lynn Williams, President of Advanced Imaging Management in The Woodlands, TX, offers leasing-type solutions for centers. He sees the buyers changing business practices and searching for lower-cost equipment. He knows of centers where the DRA has cut 15-40% of the profit margin, and of business closures in his area. Williams predicts the medical equipment market should be okay through the end of this year. The next couple of years should see a slow down, similar to the 1990's, that will leave the OEMs trying to find ways to pick up speed. "When the OEMs are in a down market like this, that's when the third-party folks can really take advantage of this."

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