Maryland Passes Legislation Supported by RadNet to Expand Access to Breast and Lung Screening
Maryland has enacted new laws to expand access to breast and lung cancer screenings, supported by RadNet. Three bills—HB 1259, HB 0934, and HB 1293—focus on affordability, quality, and education. HB 1259 prohibits copays, coinsurance, and deductibles for certain breast and lung cancer diagnostic imaging, including image-guided breast biopsy and follow-up lung diagnostics. HB 0934 tightens qualifications for x-ray operators, ensuring they meet specific training and continuing education requirements. HB 1293 mandates a three-year public education campaign on cancer prevention, targeting disproportionately affected communities. These laws will take effect in 2025.
- New laws expand breast and lung cancer screening coverage, removing financial barriers.
- Legislation includes image-guided breast biopsy and follow-up diagnostic imaging for lung cancer.
- Tighter qualifications for x-ray operators improve the quality of imaging services.
- Public education campaign on cancer prevention targeting underserved communities.
- Implementation of new laws will not take effect until 2025, delaying immediate benefits.
Insights
Maryland's legislative move to enhance access to breast and lung screening services is notable for public health and holds significant implications for investors in healthcare sectors. By making diagnostic imaging services more accessible and affordable, particularly for breast and lung cancer, the state aims to improve early detection and reduce mortality rates. This will likely increase the demand for imaging services, potentially benefiting companies like RadNet.
In the short term, these legislative changes can significantly boost patient volumes for RadNet, as more individuals may seek out these preventive services without the barrier of copayments or deductibles. Over the long term, the public education campaign mandated by HB 1293 could also increase awareness and demand for these services, further positively impacting RadNet's revenue streams.
However, tighter regulations under HB 0934 could also mean increased operational costs for ensuring compliance with new qualification requirements. While this law ensures higher quality and safety standards, RadNet may need to invest in additional training and certification processes for their staff, which could slightly impact their margins.
From a financial perspective, the new Maryland laws represent a mixed but generally positive outlook for RadNet. Eliminating copayments, coinsurance and deductibles for diagnostic imaging can lead to an uptick in the volume of procedures performed by RadNet, translating directly into higher revenue. The removal of prior authorization requirements for lung cancer screening could also expedite service provision, improving operational efficiency.
However, there are some potential drawbacks. The increased patient volume could lead to higher wear and tear on equipment, necessitating more frequent maintenance and potentially new capital expenditures on diagnostic technology. Moreover, the cost of compliance with HB 0934's training requirements for x-ray operators might slightly affect the bottom line, though these are likely manageable within RadNet's overall budget.
Overall, these legislative changes align well with RadNet's existing focus on affordable, high-quality imaging services. Investors should consider the increase in service demand and potential rise in RadNet's market share as key positives from this development.
Analyzing the market implications of Maryland's new healthcare laws, it's clear that RadNet stands to gain significantly. As the company already caters to the imaging needs of patients, the increased accessibility to breast and lung cancer screenings could position RadNet as a preferred provider. This enhanced positioning could attract patients who were previously deterred by out-of-pocket costs, thus expanding RadNet's customer base.
Additionally, the public education campaign on cancer prevention, as stipulated by HB 1293, will likely raise awareness and drive more individuals to seek preventive screenings. This could have a long-term positive impact on RadNet's brand recognition and trust among Maryland residents. However, it is essential to monitor how effectively the Maryland Department of Health implements this educational initiative and whether it successfully engages the target populations.
One aspect to watch is how competing imaging centers respond to these legislative changes. Increased competition could potentially dilute the patient influx to RadNet. Nonetheless, RadNet's proactive support and alignment with these laws may give them a competitive edge.
ANNAPOLIS, Md., June 20, 2024 (GLOBE NEWSWIRE) -- The state of Maryland continues to expand access to crucial healthcare services. RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective outpatient diagnostic imaging services, made public statements to Maryland state committees in support of three bills on breast and lung screening. Maryland Governor Wes Moore recently signed those bills into state law, expanding residents’ access to affordable, preventive healthcare.
House Bill (HB) 1259, HB 0934, and HB 1293 address issues of affordability, quality, and education, respectively. These are the same issues that RadNet prioritizes in its commitment to deliver optimal results for patients. The new laws take effect in 2025.
HB 1259 expands breast and lung cancer screening coverage. Since January 1, 2024, Maryland-regulated insurers have been prohibited from imposing a copayment, coinsurance, or deductible on coverage for diagnostic mammograms, breast ultrasound, or breast Magnetic Resonance Imaging (MRI) for the detection and diagnosis of breast cancer. This has made imaging more accessible and affordable to patients in Maryland. The new bill now expands that legislation to include image-guided breast biopsy. Additionally, under HB 1259, Maryland-regulated insurers are now prohibited from imposing a copayment, coinsurance, or deductible on coverage for follow-up diagnostic imaging for lung cancer screening. Moreover, the coverage for lung imaging may not be subject to a prior authorization requirement, according to the new legislation.
HB 0934 addresses limited x-ray operator qualifications. Under this bill, individuals may now only perform certain x-ray examinations of the chest, spine, and extremities within physician offices under the supervision of a licensed physician or radiologic technologist. They must also meet specific training and education requirements, achieve a passing score on the ARRT examination or its equivalent, and complete 24 hours of approved continuing education credits every two-years. By tightening the licensing requirements for individuals performing these exams within physician offices, the new legislation ensures that imaging exams are performed only by qualified professionals.
HB 1293 requires the Maryland Department of Health (MDH) to develop and implement a three-year public education campaign on prostate, lung, and breast cancer prevention that targets communities disproportionately impacted by those cancers. Early detection has a strong impact on cancer survival rates, and RadNet welcomes this legislation as part of its overall commitment to health equity and access.
Maryland Delegate Tiffany Alston said, “As a delegate and as a patient of RadNet, I am pleased to have had a role in passing these bills. With the Governor’s signature, we have taken action that strengthens access to affordable healthcare on critically important and potentially life-saving diagnostic screening for breast, lung, and prostate cancers. These bills reaffirm our belief that healthcare is a human right.”
“Maryland continues to lead the nation in taking steps to eliminate the barriers to affordable and accessible breast and lung cancer imaging,” said Steve Forthuber, president of Eastern Operations for RadNet. “As community-based providers on the front line of cancer care, our mission is to ensure that everyone in Maryland has equitable and affordable access to state-of-the-art imaging that will detect and diagnose cancer at its earliest stage. We want to thank Governor Moore and members of the General Assembly, particularly Delegate Tiffany Alston, for helping ensure no Marylander is left behind in the fight against cancer.”
About RadNet, Inc.
RadNet, Inc. is the leading national provider of freestanding, fixed-site diagnostic imaging services and related information technology solutions (including artificial intelligence) in the United States based on the number of locations and annual imaging revenue. RadNet has a network of 375 owned and/or operated outpatient imaging centers. RadNet's markets include Arizona, California, Delaware, Florida, Maryland, New Jersey, Texas, and New York. Together with affiliated radiologists, inclusive of full-time and per diem employees and technologists, RadNet has more than 9,700 employees. For more information, visit http://www.radnet.com.
CONTACT:
RadNet
Tim Merchant
National Director of Screening Networks and Population Health Strategy
224-250-0863
FAQ
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