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Grassley wants to lower the boom on self-referred imaging

By Diana Manos

Sen. Charles Grassley (R-Iowa), ranking member of the Senate Finance Committee, plans to introduce legislation this week designed to expose physicians who overuse self-referred imaging services under Medicare.

Grassley's bill, the Medicare Imaging Disclosure Sunshine Act of 2008, would amend the in-office ancillary services exception to the physician self-referral prohibitions under the Stark law to require that physicians disclose their financial interest in certain imaging services provided through the in-office ancillary services exception. Imaging would include magnetic resonance imaging, computed tomography, positron emission tomography and other radiology "designated health services" that the Department of Health and Human Services would deem appropriate.

The bill follows a recommendation from the Medicare Payment Advisory Commission (MedPAC) to limit physicians' financial incentives to order imaging services and a sharp increase in imaging services provided in physicians' offices, as reported by the Government Accountability Office.

Last month, the GAO reported federal Medicare Part B spending for imaging services provided in physicians' offices totaled $14.11 billion in 2006, more than double the $6.89 billion spent in 2000.

"Technology has made great advances in imaging services in recent years, and improvements in imaging hold a lot of promise for earlier and more accurate diagnoses of life-threatening diseases which often may lead to improved outcomes for patients," Grassley said. "At the same time, Medicare policy needs to do more to help control the potential for overutilization of imaging services."

According to Grassley, under the bill, "patients would be able to access imaging services the same way they can now, but they'd also have information about financial relationships in a way that's neither onerous nor overly prescriptive."

Grassley tried to introduce a similar measure on imaging disclosures in the Medicare bill passed in July, but failed to get it on the books.

Do you think transparency is needed when it comes to physician imaging referrals? Send your thoughts to Senior Editor Diana Manos at diana.manos@medtechpublishing.com.