Profitable Physician Modalities Offset by Government Contract RFPs

As the political rhetoric in Washington settles after the passage of Healthcare legislation last month there have been more questions created than answers provided over its future landscape. While almost all can agree that something must be done for improved quality while keeping these costs in order there are still many gaping holes that must be filled. A good litmus test is the constant haranguing by physician specialists over the control of the high dollar imaging modalities.

The advent of more affordable sixty four slice Computed Tomography Angiography (CTA) imaging machines now available to cardiologists and radiologists for use in preventive cardiac disease programs have been touch and go regarding the reimbursement component that each specialist can expect. With this seemingly never ending battle both camps have been forced to make decisions in light of their dwindling reimbursement fees in an already tight market.

To help augment the precipitous drop in collectable fees both camps have begun venturing into public contract work through government issued Requests for Proposals (RFPs). While these types of contracts are not new to entities like the US Department of Veteran Affairs, the level of qualified physician candidates has not only improved but has seen record numbers of applicants bidding on these RFPs. This has in turn generated much more demand for these federal, state, and local physician services contracts. The largest growth for these services exists in states and local government municipalities, namely cities and counties. According to BidPrime, an online database of government contracts, the last two months have seen a spike in these services. In fact the amount to date as of May, 2010 equals those contracts for bid for all of 2009.

The ubiquitous nature of these part time opportunities is now being sought out by physician management personnel to try and stave off their dwindling bottom lines. Thanks in large part to the steady flow of stimulus money and more funds for health care, this trend of finding government contract RFP work is becoming trendy while creating some better case scenarios for the physicians as well as their patients.

The constant and growing need for cardiology services had attracted many lesser trained clinicians in past years. That trend seems to be ending, though, as the once profitable modalities like the sixty four slice CTA cuts have provided the impetus for many cardiology groups to revamp their entire compensation packages requiring groups to at least place bids on newly released government contract RFP work.

The end result appears to favor a more productive patient environment due to the availability of more and better trained physicians at lower rates. Most industry analysts see this as the beginning of a longer lasting trend than previously imagined, largely because of the increased government role in healthcare legislation and funding. With the infighting in Washington decided over each penny in this year’s Health Care and Education Reconciliation Act of 2010 legislation, this trend of newly found and steady paying work appears to have just begun.

How long it will last is anyone’s guess. For the moment, though, it appears a more productive solution than the constant bickering over the once profitable imaging modalities.

Author Bio: Mr. Ward is the VP of Business Development at BidPrime.com, an online reseller of federal, state, and local government bids and contract intelligence. View more healthcare/medical government bids.

Category: Medical Business
Keywords: government bids, state and local bids, government contract intelligence, request for proposal

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