
The Massachusetts state auditor reported this week that the state’s Medicaid program, MassHealth, “may be losing millions of dollars due to unnecessary advanced imaging services such as MRIs.”
The audit report cited two main reasons for the “unnecessary” expenditures: a lack of state laws or regulations against self-referrals, and a reimbursement rate that’s higher than the federal Medicare reimbursement rate. You can find the report here and a news release about it here.
A July article in CommonWealth magazine (which covers “politics, ideas & civic life in Massachusetts”) described the state as “a medical imaging mecca.” It reported that Massachusetts has 42 MRI machines for every million residents, compared with the national average of 26, which itself is higher than that of any other country. According to the magazine, Massachusetts (population 6.5 million) has more MRI units than Australia and Canada (total population 55 million) combined.
The article also states:
Medical experts say the explosion in medical imaging facilities is fueling a dramatic increase in scans, many of them unnecessary and, in fact, harmful.
In the next few years, whatever the resolution of this particular issue, we can be sure that advanced imaging will be a major target for health care cost-cutters—and not just in Massachusetts.
To close the week, a couple of updates:
Related seminar: The Business of Radiology
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