CMS PROPOSAL COULD LEAD TO DRASTIC CUTS IN DEVICE PURCHASES
Centers for Medicare & Medicaid Services (CMS) proposals to cut physician fee schedules could lead doctors to severely scale back on new device purchases.
The CMS Aug. 8 announced plans to make a 5.1 percent reduction to the Medicare Physician Fee Schedule (MPFS) in 2007. The American Medical Association (AMA) in March issued survey results finding that this plan would cause 55 percent of doctors to hold off on new equipment purchases.
The AMA survey also said projected cuts of 34 percent to the MPFS by 2015 would lead 74 percent of doctors to scale back their investments in devices.
"Reductions in physician payment may limit the level and type of services they provide and thereby limit patient access to advanced medical technologies," Regina Hall, AdvaMed's communications director, said.
As part of its proposal, the CMS is planning to use survey data about the expenses associated with physician practices for eight specialties -- allergy and immunology, cardiology, dermatology, gastroenterology, radiology, radiation oncology, urology and independent diagnostic testing facilities.