FAQs for navigating the new CR to DR transition

As a leading provider of diagnostic imaging products and medical informatics solutions, Fujifilm will meet the needs of healthcare facilities by delivering customized services, exceptional products and expertise. During this transition, Fujifilm will remain committed to continue its collaboration with customers, ensuring they maximize their investment, and have the appropriate solutions to serve their patients in need of care.


Fujifilm has several limited-time financial offers available to help transition you from CR to DR. Please contact your Fujifilm Sales Representative or fill out this form to learn more and we will happily respond to your request.

1. How will the provisions inserted into the Consolidated Appropriations Act influence healthcare providers?

In December 2015 President Obama signed the Consolidated Appropriations Act of 2016. Included in the document is a special rule for diagnostic radiology that incentivizes imaging providers to adopt more advanced X-ray technology by cutting reimbursement to older technology.

Beginning in 2017, claims submitted for X-rays performed on analog equipment will receive a 20% reduction in payment. Additionally, the law phases-in Medicare payment reductions under the hospital outpatient PPS and physician fee schedule technical component for X-rays taken using computed radiography in an effort to encourage wider use of digital radiography.

Starting in 2018 through 2022, payments for X-rays taken using computed radiography will be reduced by 7 percent, with a 10 percent reduction starting in 2023. The majority of hospitals and imaging facilities that do not replace existing systems will face payment reductions.


2. How will Fujifilm support healthcare providers’ transition from computed radiography (CR) to digital radiography (DR)?

As a leading provider of diagnostic imaging products and medical informatics solutions, Fujifilm will meet the needs of healthcare facilities by delivering customized services, exceptional DR products and expertise.

We will help you assess your institution's needs to determine the best paths to meet your financial, clinical and workflow goals. Our industry-leading products and customized pricing solutions offer exclusive ways to achieve your budgetary objectives when transitioning to DR.

For additional information, please collaborate with your local Fujifilm representative.


3. What key steps are involved in the transition to DR?

To avoid reimbursement reductions, providers who use analog or CR equipment should begin planning their transition to digital now. The following three steps can help during your transition:

  1. 1.Inventory your assets and identify your analog and CR equipment.
  2. 2.Assess the volume of X-ray procedures performed on equipment affected by the reimbursement reductions to calculate the financial impact to your institution.
  3. 3.Develop and execute an asset plan that converts your analog and CR X-ray systems to digital.

4. How do you think the new legislation will impact providers short-term and long-term?

The short-term cost associated with accelerating a health care facility’s inevitable transition to digital radiography can be aligned with its goal of providing optimal patient care with current technology.


5. Are there any tax incentives for purchasing new digital radiography equipment?

The IRS Section 179 Tax Deduction may allow small and medium radiology businesses to deduct up to $500,000 in 2017 for equipment purchased to help their business. For private practices, imaging centers, urgent care centers not owned by a large hospital or other large organization, this could be of substantial help in their purchase decision to transition from CR to DR and to make healthcare IT purchases.

The following two paragraphs are highlights from the Understanding The Section 179 Deduction.

"Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves."

"Section 179 does come with limits - there are caps to the total amount written off ($500,000 for 2017), and limits to the total amount of the equipment purchased ($2,000,000 in 2017). The deduction begins to phase out dollar-for-dollar after $2,000,000 is spent by a given business, so this makes it a true small and medium-sized business deduction."

For more information, visit the IRS Website: Section 179 Deduction Table of Contents.

Resources

CR to DR Transition Guide

  • Learn about our exclusive DR benefits
  • Partner with Fujifilm to assess your needs and determine the customized plan that's right for you

Download our CR to DR Transition Guide

Case Study

Decoding the Consolidated Appropriations Act of 2016
How new CMS legislation will impact healthcare providers and what one center is doing to prepare.
Download the Case Study


Webinars on Demand

Navigating the New Consolidated Appropriations Act of 2016: Challenging Problems | DR Solutions
Understand the business impact the new CR to DR transition law will have on your facility
Watch the webinar


CR to DR Transition: Maximize Patient Outcomes & Financial Benefits
Learn how transitioning to DR can impact your imaging department in many positive ways, including clinically, financially and from a patient satisfaction standpoint.
Watch the webinar


Please contact your Fujifilm Sales Representative or fill out this form to learn more and we will happily respond to your request.

References

Medical Imaging & Technology Alliance (2016, February 22). Medical to incentivize transition from traditional x-ray to digital radiography starting in 2017. Retrieved from: