Radiation Oncology Only to Receive 1% Cut and not 19%

Radiation Oncology Only to Receive 1% Cut and not 19% – CMS

The American Society for Radiation Oncology got busy after the initial announcements and conducted surveys and found that as many as 50% of the facilities in rural areas could face closing if the reductions went through, so now instead of 19% at once, it’s 1% over 4 years for a total of 5% overall.

Due to patient mix, the facilities could have lost around 31% of their revenue in one swipe if this would have gone through, and of course this would have left many cancer patients without treatment facilities, or having to travel long distances for care, and probably longer waiting times. CMS stated they will continue to use additional data and information as it comes in to review and see usage and the care of patients through business intelligence related efforts. As I have said before, sometimes it is hard to budget today for new technology that may exist tomorrow with a need for use now. BD

CHICAGO - Radiation oncology is celebrating in the Windy City this week after learning that a 19% cut in Medicare reimbursement for radiation oncology procedures won't happen after all. The U.S. Centers for Medicare and Medicaid Services (CMS) on October 30 announced new payment rates for 2010 that call for a far less severe cut in radiation oncology payments, and the agency will exempt radiation therapy equipment from its proposed equipment utilization rate of 90%.

In announcing new payment rates for 2010, CMS said that instead of a 19% cut, it would implement a 5% reduction phased in over a four-year period. Therefore, starting January 1, 2010, Medicare and Medicaid reimbursement for radiation oncology treatments will be reduced by 1% for calendar year 2010.

CMS originally proposed the 19% cut on July 13 as part of changes to its Medicare Physician Fee Schedule. The proposal sparked ASTRO to launch the most intensive advocacy campaign in its history, including its first national print and radio advertising campaign.

During the interview, Thevenot pointed out that the disastrous impact the proposed reimbursement cuts would ultimately have on the average American needing cancer treatments countered the Obama Administration’s initiative to improve healthcare for U.S. citizens.

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