The Deficit Reduction Act of 2005, previously covered in DOTmed news, has been signed into law. It's at the top of news again in the medical community with concerns over cuts in Medicare reimbursement for medical imaging. Lobbyists for professional associations are scrambling to restore funding before the law takes effect in 2007.

The new law standardizes fees for imaging, ambulatory surgical centers, and hospitals performing the same procedures. This could mean cuts for imaging centers and ASCs.

"The drastic Medicare reimbursement cuts for out-of-hospital medical imaging procedures in the bill...may force many physicians to stop offering much needed imaging services and limit the number of Medicare patients they receive. These drastic cuts may also force radiologists in rural areas to relocate to hospitals in larger metropolitan areas," cautioned the American College of Radiology.
A reduction in revenues at imaging facilities will make it harder to invest in new equipment, according to radiology site Aunt Minnie.com.

But wait a minute, Auntie. If a budget crunch bears down on imaging centers, it may also present an opportunity to contain operating costs by relying on used medical equipment, refurbished to industry and OEM standards. The changes to reimbursement point to the value and effectiveness of incorporating used equipment into clinical capital investments.

DOTmed users including brokers and dealers are probably already talking to customers about the government budget tightening. When selling to potential U.S. customers, the Deficit Reduction Act of 2005 is just another selling point for our industry in 2006.

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