SPI Medical Imaging: Death by a Thousand Cuts for Outpatient Imaging?

In July, The Centers for Medicare & Medicaid Services (CMS) released its 2025 Medicare Physician Fee Schedule, stating that it aims to “to advance health equity and support whole-person care.” The schedule includes a proposed 2.8% cut to the conversion factor used to determine Medicare payment for physician services, from $33.29 down to $32.36.

Why we are covering this topic

• The proposal has drawn the ire of various groups including the Medical Group Management Association (MGMA), which believes the cuts have “dangerous implications” and “undermine the ability of medical practices to keep their doors open and function effectively.”
•  In its Q2 2024 earnings call, RadNet Chief Financial Officer Mark Stolper stated that the proposed change would represent a $6 million to $8 million cut in revenues from its Medicare business in 2025.

 Why it matters

• Larger companies like RadNet should be able to mitigate the impact of the proposed cut, however the impact for smaller imaging facilities may be far more detrimental, both for their businesses and their patients.
• The cut would intensify existing pressures on outpatient imaging centres, increasing the necessity to leverage AI and other technologies to increase reading efficiency and sustain Medicare revenues.