New payment formula proposes Medicare cuts for high-tech imaging

March 5, 2009 Diagnostic Imaging. New payment formula proposes Medicare cuts for high-tech imaging By James Brice A new formula proposed by the influential Medicare Payment Advisory Commission for calculating practice expense relative value units could cut technical payments for MRI, CT, and PET from the Medicare Physician Fee Schedule by as much as 44%. In its annual report to Congress, MedPAC recommended doubling the assumed utilization rate for calculating practice expense RVUs for the technical portion of reimbursement from 25 hours per week (50% utilization) to 45 hours per week (100% utilization). MedPAC's practice expense RVU recommendation would apply to all diagnostic imaging equipment costing more than $1 million.

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