PAMA Is Here, but Most Hospitals Are Unaware of Its Impact, Study Finds

Nearly 80 percent of executives surveyed lacked significant knowledge of the law: 45 percent of executives responded that they are "not at all familiar" with PAMA, and 33 percent said they are only "somewhat familiar."<br />"The data presented here support what we've experienced in the health care marketplace," said Steve Rusckowski, Chairman, President...

Nearly 80 percent of executives surveyed lacked significant knowledge of the law: 45 percent of executives responded that they are "not at all familiar" with PAMA, and 33 percent said they are only "somewhat familiar."

"The data presented here support what we've experienced in the health care marketplace," said Steve Rusckowski, Chairman, President and CEO of Quest Diagnostics. "Many C-suite executives of hospital health systems aren't aware of the impact of PAMA on the profitability of their outreach laboratories, especially when the PAMA cuts were first enacted. When we talk about PAMA with CEOs, they are increasingly interested in talking more about how we can help them execute their lab strategy," Rusckowski said.

Signed into law on April 1st, 2014, PAMA has resulted in a significant reduction in Medicare reimbursement for most lab tests covered by the Clinical Laboratory Fee Schedule. The new fee schedule includes a decrease in reimbursement for approximately 75 percent of lab tests that can be billed to the Centers for Medicare and Medicaid Services (CMS). CMS estimated the cuts to have an overall impact to the industry of nearly $670 million, or a nearly 10 percent decrease from the previous fee schedule. Similar cuts will follow over the next two years, and additional cuts are possible beyond 2020.

Quest commissioned Modern Healthcare Custom Media to conduct a survey of healthcare professionals in July 2018, seeking to gain insights into laboratory strategy at U.S. hospitals and awareness of healthcare leaders regarding PAMA.

A report on the study can be found here.

Source: newsroom.questdiagnostics.com