Independent Diagnostic Testing Facilities (IDTF)

Payors Begin To Deny Hospital-Based Outpatient MRI and CT Scans When Options Exist…

As payment methods change and as hospitals and health systems search to find lower cost alternatives to meet patient needs, IDTF’s are emerging as a feasible option of staying in the outpatient imaging field as they maintain costs by focusing on one service, translating to less overhead. So, what exactly is an IDTF?

  • Diagnostic testing facility which is independent both of an attending and consulting physician’s office and of a Hospital
  • May be a fixed location or a mobile entity
  • Requires enrollment under Medicare Part B
  • Requires one or more supervising physician(s)
  • Requires IDTF Technician
  • Diagnostic procedures performed at an IDTF are reimbursed under the physician fee schedule when performed by an IDTF

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  • Responsive to non-governmental payers’ potential non-coverage of hospital-based diagnostics
  • Expansion of the continuum of care
  • Response to market competition
  • Increase market share
  • The ability to integrate into a system’s ambulatory care strategy
  • Governance, ownership and operational flexibility outside of the hospital’s structure
  • Enhanced Medicare reimbursement through specific structures
  • Freestanding IDTFs cannot:
  • Share practice location space with another Medicare-enrolled individual or organization;
  • Lease or sublease operations or its practice location with another Medicare-enrolled individual or organization; or
  • Share diagnostic testing equipment with another Medicare-enrolled individual or organization
  • Exceptions: Hospital-based IDTFs and Mobile IDTFs

There are multiple structures and corresponding regulations for an IDTF:

  • Sole ownership
  • Joint Venture
  • Roll-Up of multiple sites
  • Under Arrangement

Hospitals and health systems may find that IDTFs are a viable option to serve patient needs and to continue to be a provider of outpatient imaging. Advis takes a comprehensive approach in helping its clients determine if an IDTF is an option, including:

  • Feasibility/Market Assessment
  • Financial Impact
  • Structure
  • Regulatory Compliance
  • Licensure
  • Coding/Billing
  • Accreditation

Advis is well-versed in feasibility analysis, as well as, development for IDTFs. If you have further questions don’t hesitate to contact us.