How to Prepare for Declining Radiology Reimbursement Rates
On January 1, 2022, a 3% Medicare reimbursement cut will go into effect, impacting radiology practices across the United States.
Client Services Team
December 14, 2012
How to Prepare for Declining Radiology Reimbursement Rates
On January 1, 2022, a 3% Medicare reimbursement cut will go into effect, impacting radiology practices across the United States. What does this signal in the short term for your practice’s reimbursements? What can practices do to make sure they’re prepared for these cuts?
Reimbursement cuts ahead: 4 highlights from the Protecting Medicare and American Farmers from Sequester Cuts Act
On December 9, the Senate passed the Protecting Medicare and American Farmers from Sequester Cuts Act after months of debate and lobbying. The final bill addresses deep concerns from the medical community by delaying current existing cuts to Medicare physician fees. Highlights of the bill included:
- A 3% reduction in radiology reimbursement, compared to the looming 10.75% pay cut.
- A one-year increase in the Medicare physician payment schedule of 3%, a 0.75% decrease from 2021.
- A one-year delay in the Medicare radiation oncology demonstration.
- Removal of the 4% Medicare pay-as-you-go (PAYGO) cut and prevention of additional PAYGO cuts through 2022.
What does this mean for radiology practices?
Radiology practices should assess their current financial strategies and revenue cycle management now. Physician organizations like the RBMA successfully reduced the drastic payment cuts previously proposed, but that doesn't guarantee payment stability in years to come.
How APS Medical Billing Solutions can help
1. Maximize your cashflow now.
With declining reimbursements on the horizon, every dollar counts. Now is a good time to assess your practice’s performance and bring in revenue management expertise.
Outsourcing your billing can help manage the impact of the 3% reimbursement decrease, combined with the increased costs of technology investments, patient care, and staffing. It’s APS’ job to optimize each step of our clients’ revenue cycle. In our 30+ years of operation, we’ve developed airtight processes, mitigation techniques, and employee standards that maximize cashflow for practices across the country.
2. Ensure data-driven decision making
Information is power. You aren’t getting the full picture of your financial performance if you’re just looking at your practice’s net revenue. How are your claims being coded? What percentage of your claims are successfully adjudicated on first submission? What’s your average time to payment? As profit margins narrow, you need more information about each step in your revenue cycle.
APS has closed this information gap for our clients using our proprietary APSimplify Data Center which provides you with a current, dynamic assessment of your practice’s performance.
3. A partnership without financial risk
You might be worried about your practice’s financial performance, but you might also be worried if now is the right time for change. What if you make the wrong choice in provider? What if there’s a drop in your revenue during the transition, along with the 3% reimbursement cut?
APS offers a 100% guarantee, no lost revenue during your service transition so you know your finances are in good hands from day one. You should feel confident about your financial partner so that you can focus on what you do best: provide excellent patient care.
Now is the time: contact APS
To learn more about how APS can support you in 2022 or for specific questions about the Protecting Medicare and American Farmers from Sequester Cuts Act, contact inquiries@apsmedicalbilling.com
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