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Radiology - The next cost battleground

Recent HealthLeaders-InterStudy research revealed that radiology costs are now the fastest growing component of healthcare spending at 18-20% per year. In fact, radiology is now the second largest component of healthcare spending behind pharmaceuticals, which are only growing about half as rapidly as imaging. According to Jane DuBose, HealthLeaders-InterStudy Associate Director of Health Plan Analysis:

"For many health plans, radiology is now driving premium increases. Health plans have worked hard to control drug costs, only to have this new source of costs emerge. Plans are putting new controls on such imaging in place, but we're expecting to see resistance from physicians."

To date, health plans have deployed techniques such as pre-authorization, closed networks, and higher co-pays to control costs.

Stay tuned for upcoming posts on the pro's and con's on these approaches as well as thoughts on new solutions for skyrocketing diagnostic imaging costs.

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Welcome

This blog covers radiology utilization management news. With radiology spending topping $100 billion in the US alone - managing diagnostic imaging spending has become top of mind for health plans and other healthcare payers.