Hospitals face $400M in annual cardiac device costs as Medicare rates lag, study finds

While the use of MRI-compatible cardiac devices has grown significantly in the past 18 months, Medicare continues to reimburse for the more expensive devices at rates standard for those noncompliant with MRIs, according to a report prepared by Vizient.

Advertisement

Medicare patients represent between 70 and 75 percent of all procedures to place pacemakers, defibrillators and other cardiac rhythm devices. Use of MRI-compatible pacemakers in those procedures grew from 12.3 percent in 2016 to 73.6 percent in 2018.

However, an uptick in the cost of CRM devices that are MRI-compliant has increased hospitals’ total spend on the devices by 8 percent, as Medicare has not increased what it reimburses for the more expensive devices. This translates to more than $400 million in cost increases for U.S. hospitals each year, according to the report.

“While there is clear clinical benefit to MRI-compatible devices, utilization data suggests that appropriate patient selection will be an important factor in effectively managing overall CRM device spend,” according to the report.

More articles on healthcare finance:
6-hospital Verity Health files for bankruptcy   
NewYork-Presbyterian’s net income tumbles 47%   
AMA releases 335 coding changes for 2019

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Register to Attend Webinar

Reconsider What’s Possible: Enterprise RCM and the Pro-Fee Practice

Tuesday, July 28
11:00 AM - 12:00 PM CDT

Presenters: Garett Kreitz, Med-MetrixJohn Stefanowicz, Med-Metrix

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.