Fonar Corp (FONR)

[Telephonics]

Bad News

Congress adjourns without delaying DRA imaging cuts

Despite intense lobbying efforts in recent months, medical imaging advocates were unable to persuade the U.S. Congress to make adjustments to the Deficit Reduction Act (DRA) of 2005 before it adjourned over the weekend. The DRA's provisions cutting Medicare reimbursement for outpatient imaging procedures will take effect as mandated on January 1, 2007.

The Senate and House of Representatives failed to take action on two bills (H.R. 5704, S. 3795) that would have delayed the DRA's technical component cuts for outpatient imaging services for at least two years, pending a study by the Government Accountability Office (GAO) into the effect of the cuts on patient access to care.

There was some good news, however, for healthcare providers, as Congress rejected a 5% reduction in the Medicare Physician Fee Schedule.