MedSolutions is extremely disquieted about the unexpected negative influence of the Deficit Reduction Act (DRA) on Medicare beneficiaries and quality of care as a result of reimbursement changes for procedures performed at freestanding imaging centers, MedSolutions announced on BusinessWire.

The DRA has been in effect since January 1, 2007 and is forcing many imaging centers out of business, or to become part of groups. This is because, in order to eliminate perceived overuse of outpatient imaging, Medicare capped the reimbursement.

Research spearheaded by MedSolutions shows major implications for beneficiaries if accessibility of freestanding imaging centers is lessened because of cuts to reimbursement. These across-the-board cuts will not address growth in imaging services, widely regarded as a motivation behind the policy change. It is felt that a more effective approach would be to augment patient care by working closely with providers to make sure that Medicare patients receive the right testing in the right setting.

Curt Thorne, president and CEO of MedSolutions stated that saving $8 billion sounds good for taxpayers on the surface, but that public good must also be served. Thorne feels that the enormity of these cuts will force many freestanding imaging centers out of business and drive patients to more expensive outpatient hospitals for imaging procedures. This, in turn, will increase the cost of the health care system, putting the financial burden on taxpayers.

MedSolutions wants to work with Congress to develop policies that use radiology management tools, employing clinical guidelines developed and endorsed by physicians to determine the right imaging test, promote patient safety, preserve patient access to care and improve quality while minimizing inappropriate and wasteful use of medical services.

MedSolutions specializes in managing radiology services for national and regional health plans and federal and state government agencies, maintaining management contracts for almost 25 million individuals.

PACS Market Research

In a recent detailed analysis of the picture archiving and communication systems (PACS) market by the Millennium Research Group (MRG) in its U.S. Markets for PACS 2007 it reported that the DRA that slashed reimbursement for U.S. diagnostic imaging centers, is also impacting the PACS market.

Given the reimbursement climate, imaging centers that are still operating are going to have to increase their examination volumes and find operational efficiencies to make a profit, leading to the attractiveness of PACS systems.

While it's true that PACS improves day-to-day operations, it can be an expensive investment. As a result, many PACS vendors are offering systems that smaller facilities can afford. "As vendors shift their focus from large facilities to smaller customers, they are developing PACS solutions with attractive pricing and service models, which will help drive adoption in imaging centers and smaller hospitals," says Chris Schutz, Senior Analyst at MRG. "With exam volumes and image sizes growing rapidly, PACS has become an essential tool for imaging facilities of all sizes and specialties."

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