Benefits of DR technology
must be recognized
must be recognized
Imaging facilities can survive cuts to Medicare reimbursements
July 26, 2016
By: Tsuneo Imai
Since late last year, much of the chatter in the imaging industry has been centered on the reduction of Medicare payments to diagnostic imaging facilities using analog and computed radiography (CR) technologies. As many of us have heard by now, as per Section 502 of the Consolidated Appropriations Act of 2016, enacted in December 2015, Medicare reimbursements will be reduced by 20 percent per year for providers submitting claims for analog X-ray studies beginning in 2017. From 2018 through 2022, payments for imaging tests performed on CR equipment will be reduced by seven percent with a 10 percent reduction beginning in 2023.
The passage of the Consolidated Appropriations Act demonstrates that the federal government sees the benefits hospitals can realize by upgrading their X-ray equipment to digital radiography (DR). Thankfully, imaging facilities have control in how they upgrade, and radiologists have options to make the transition to DR a smooth one.
What to expect
The capital investment needed for facilities to convert their technology to DR, and potential disruptions to normal operations during the upgrade period, may explain why some medical centers have been hesitant to transition. While the legislation is expected to have a very small impact on analog X-ray reductions (as many offices that were previously using analog have already upgraded their imaging systems to DR or CR technologies) the reductions in CR payments could have a wider-ranging impact. According to IMV’s 2015 X-ray/DR/CR Market Outlook Report, more than 8,500 CR units are still in service in U.S. hospitals. And starting in 2018, these systems must be upgraded or the hospitals will experience reductions in their payments from Medicare.
Baby steps
Rather than upgrading a full exam room at once, imaging facilities can implement a “baby steps” approach, introducing DR equipment one step at a time to avoid a larger upfront cost. Upgrade kits can assist facilities in realizing the benefits of DR, helping to accelerate exams and boost patient satisfaction during this transition period. Tethered and wireless upgrade kits can provide a time-saving, low-dose method to generate high-resolution images. These kits transform these pre-existing systems into digital radiographic solutions for a diverse range of applications, including routine exams and trauma.
Some technology providers also offer digital detectors that work with existing installed X-ray generators or mobile generators and, as a result, do not require expensive CR readers and maintenance. These digital detectors can be transported from room to room and to multiple areas of the facility on a cart.
Finding the right partner
The bottom line is that every health care facility — regardless of size or budget — should have the ability to gain the advantages of DR at an investment that is suitable for them. When a facility decides to adopt DR technology, there are several potential long-term financial benefits that can occur, including extending the life of existing radiographic modalities and increased capacity, so that one room can do the work of two to three rooms, as compared with using CR technology.
For example, DR systems that can perform multiple exam types (such as radiography, fluoroscopy and tabletop) turn one room into a universal room. Although the cost to implement DR technology has fallen within recent years, upgrading equipment can still carry a hefty price tag. The right technology provider will allow health care facilities to make the transition at their own pace, whether that means slowly or all at once. To minimize upfront expenses, practices can look for a company that will be a partner and offer them flexibility. Radiologists should inquire with their technology providers regarding financing options to reduce the pressure of undergoing a full DR upgrade all at once.
Looking ahead
The benefits that DR technology can offer are tremendous. As numerous studies have demonstrated, facilities utilizing DR are able to care for additional patients because of the reduced number of processes required to obtain an image, and they realize a reduction in patient X-ray dose, while enjoying greater imaging quality when compared to utilizing CR technology.
As the imaging industry advances and new products come to market, it should become easier for facilities to upgrade their equipment. Section 502 of the Consolidated Appropriations Act of 2016 will help the imaging industry reap the benefits that DR offers. Whether facilities choose to upgrade all at once or gradually, this push will help drive health care providers to the technology that will help provide a more patient-focused care environment.
About the author: Tsuneo Imai is the vice president and general manager, Healthcare Solutions Division, Business Imaging Systems Group, Canon U.S.A. Inc., and president of Virtual Imaging, Inc.
Since late last year, much of the chatter in the imaging industry has been centered on the reduction of Medicare payments to diagnostic imaging facilities using analog and computed radiography (CR) technologies. As many of us have heard by now, as per Section 502 of the Consolidated Appropriations Act of 2016, enacted in December 2015, Medicare reimbursements will be reduced by 20 percent per year for providers submitting claims for analog X-ray studies beginning in 2017. From 2018 through 2022, payments for imaging tests performed on CR equipment will be reduced by seven percent with a 10 percent reduction beginning in 2023.
The passage of the Consolidated Appropriations Act demonstrates that the federal government sees the benefits hospitals can realize by upgrading their X-ray equipment to digital radiography (DR). Thankfully, imaging facilities have control in how they upgrade, and radiologists have options to make the transition to DR a smooth one.
What to expect
The capital investment needed for facilities to convert their technology to DR, and potential disruptions to normal operations during the upgrade period, may explain why some medical centers have been hesitant to transition. While the legislation is expected to have a very small impact on analog X-ray reductions (as many offices that were previously using analog have already upgraded their imaging systems to DR or CR technologies) the reductions in CR payments could have a wider-ranging impact. According to IMV’s 2015 X-ray/DR/CR Market Outlook Report, more than 8,500 CR units are still in service in U.S. hospitals. And starting in 2018, these systems must be upgraded or the hospitals will experience reductions in their payments from Medicare.
Baby steps
Rather than upgrading a full exam room at once, imaging facilities can implement a “baby steps” approach, introducing DR equipment one step at a time to avoid a larger upfront cost. Upgrade kits can assist facilities in realizing the benefits of DR, helping to accelerate exams and boost patient satisfaction during this transition period. Tethered and wireless upgrade kits can provide a time-saving, low-dose method to generate high-resolution images. These kits transform these pre-existing systems into digital radiographic solutions for a diverse range of applications, including routine exams and trauma.
Some technology providers also offer digital detectors that work with existing installed X-ray generators or mobile generators and, as a result, do not require expensive CR readers and maintenance. These digital detectors can be transported from room to room and to multiple areas of the facility on a cart.
Finding the right partner
The bottom line is that every health care facility — regardless of size or budget — should have the ability to gain the advantages of DR at an investment that is suitable for them. When a facility decides to adopt DR technology, there are several potential long-term financial benefits that can occur, including extending the life of existing radiographic modalities and increased capacity, so that one room can do the work of two to three rooms, as compared with using CR technology.
For example, DR systems that can perform multiple exam types (such as radiography, fluoroscopy and tabletop) turn one room into a universal room. Although the cost to implement DR technology has fallen within recent years, upgrading equipment can still carry a hefty price tag. The right technology provider will allow health care facilities to make the transition at their own pace, whether that means slowly or all at once. To minimize upfront expenses, practices can look for a company that will be a partner and offer them flexibility. Radiologists should inquire with their technology providers regarding financing options to reduce the pressure of undergoing a full DR upgrade all at once.
Looking ahead
The benefits that DR technology can offer are tremendous. As numerous studies have demonstrated, facilities utilizing DR are able to care for additional patients because of the reduced number of processes required to obtain an image, and they realize a reduction in patient X-ray dose, while enjoying greater imaging quality when compared to utilizing CR technology.
As the imaging industry advances and new products come to market, it should become easier for facilities to upgrade their equipment. Section 502 of the Consolidated Appropriations Act of 2016 will help the imaging industry reap the benefits that DR offers. Whether facilities choose to upgrade all at once or gradually, this push will help drive health care providers to the technology that will help provide a more patient-focused care environment.
About the author: Tsuneo Imai is the vice president and general manager, Healthcare Solutions Division, Business Imaging Systems Group, Canon U.S.A. Inc., and president of Virtual Imaging, Inc.