Obamacare is not popular. In numerous recent polls, such as one from the Kaiser Family Foundation, 47 percent of respondents said they have an unfavorable opinion of the law, while 35 percent said they viewed it favorably. The overwhelming public reaction to the new law has been less than enthusiastic, as the financial burden to patients and physicians alike has increased significantly. We will soon embark upon the second year of enrollment still questionning the effectiveness of the new law.

Contrary to the recent technical reimbursement cuts this year, which have negatively impacted diagnostic imaging operators, professional reimbursement for the same CPT codes have experienced a stable to slight decline; although, in some instances there was an increase. Modalities such as Computed Tomography (“CT”) and Magnetic Resonance Imaging (“MRI”) experienced technical reimbursement declines between 1 percent and 45 percent. For many freestanding imaging operators relying heavily on governmental payors, without an increase in volume and/or expense reductions, the technical reimbursement declines directly impact the operating earnings of the business. 

Now that we're reaching the one year mark of the official launch of the health insurance exchange, critics and supporters continue to debate whether or not healthcare reform is reforming anything. According to an article in Forbes today, something much bigger is happening. Whatever you think of its merits, the Affordable Care Act is re-shaping American healthcare, radically altering business models that hadn’t changed in decades.  

We live in a culture of bling in which heat and chutzpah trump almost everything—what else explains the fact that Kim Kardashian has a leading game app in the Apple store? Given that, and the fact that India just put a satellite into orbit around Mars for a fraction ($74 million) of what we spent ($671 million) to send MAVEN to Mars, I’d like to take a few of your minutes to praise the virtues of thrift, despite the fact (or maybe because of it) that we are a country with a nearly $18 trillion dollar debt and an unsustainable Medicare program.

The 2015 proposed changes to the Medicare Physician Fee Schedule (MPFS) are consistent with those from previous years, continuing to whittle away the revenue stream of radiologists. While the overall impact to radiology is estimated at two percent based on the current proposal, there are some notable changes proposed that may cause the impact to be significantly higher in certain situations.

As valuation professionals, we actively follow publicly traded companies in the healthcare industry.  These companies provide insight into how company management and investors evaluate the opportunities and risks faced by a particular industry.  Challenges in the diagnostic imaging business are not unique; nearly all ancillary healthcare service companies are experiencing similar macroeconomic headwinds. However, ancillary healthcare stocks have continued to demonstrate gains.  

In imaging services, “getting it right” is of utmost importance when it comes to selecting the appropriate equipment, administering the correct radiation dose and delivering excellent patient care. Getting it right also is an imperative where staffing is concerned.

When it comes to electronic communications for radiology, it’s all in the workflow, says Andrew Wells, MD, a radiologist with Hendersonville Radiological Consultants, an eight-partner practice that covers three hospitals in western North Carolina.