Tariffs threaten imaging access for patients, RBMA warns
The impact of President Donald Trump's tariffs on medical imaging product imports is beginning to be felt in radiology, and there is growing fear rising prices will further compound existing financial and supply chain issues in healthcare. This prompted the Radiology Patient Action Network (RPAN) and Radiology Business Management Association (RBMA) to call on members to take action Wednesday.
The major concern is that the negotiated fees for service from insurance companies, and payments from Medicare, are fixed and do not compensate practices for sudden higher costs to provide care, due to tariffs. Most iodine contrast agents, disposables and many imaging systems or their components are imported into the U.S.
"Tariffs on medical technology products are threatening to drive up healthcare costs for providers and patients alike," the RPAN letter to members stated. "These products depend on complex global supply chains, and new tariffs could disrupt access to essential tools like contrast agents, whose costs have already doubled since 2019. This increase in costs could lead to delayed procedures, reduced availability of lifesaving equipment, and even canceled surgeries, especially affecting vulnerable groups like children and the elderly."
RPAN is urging Congress to shield medical technology products from these tariffs. If exemptions are not possible, the network is calling for a three-year implementation delay and a fair, expedited process for companies to apply for exclusions. Specifically, they want Congress to:
• Support a full exemption of medical technology products from any Section 301 tariffs.
• Urge the Trump administration to establish a clear, time-limited product waiver process for critical devices.
• Delay implementation of any medtech tariffs for at least three years, allowing time for regulatory and supply chain adjustments.
"The RBMA and its members are deeply concerned about the impact these tariffs will have on our industry," RBMA Co-executive Director Linda Wilgus told Radiology Business April 23. "Radiology groups enter into contracts with commercial payers, where reimbursement for services rendered is fixed. Consequently, we cannot pass these additional costs onto our patients, forcing radiologists to absorb them. Our physician groups are already operating on razor-thin margins, contending with year-over-year cuts to reimbursement, rising costs due to inflation, and a manpower crisis affecting supply and demand. We urgently need Congress to provide relief by exempting medical equipment, medical devices, and medical supplies from potential tariffs."
The Radiology Political Action Network has created a separate webpage for advocacy to protect healthcare from the impact of tariffs. Imaging stakeholders can go to NoTariffsOnHealth.com and sign a letter to send to their representative in Washington.
“The launch of NoTariffsOnHealth.com reflects our commitment to protecting patient access to care," Kit Crancer, RBMA board member, immediate past president, and executive director of the Rayus Quality Institute, told Radiology Business by email. "Tariffs on medical equipment will delay critical equipment purchases and upgrades, making it harder for radiology practices to provide timely diagnoses. These delays translate directly into reduced access to lifesaving imaging services. Through RPAN, RBMA will continue to press for a full exclusion for medical equipment and supplies."
Tariffs already increasing prices for radiology practices
While the concept of tariffs being put in place to spur domestic production of products sounds good in theory, the reality is that the interwoven integration of the world economy and its supply chains makes that goal difficult. Vendors say it could take years to relocate production to the United States. This is why RPAN and RBMA are asking for a delay in tariffs on healthcare products for at least three years to enable companies to make a transition to domestic production and sourcing of components.
"I have heard members report that they are seeing a tariff tax on equipment purchases," Wilgus said.
She and Crancer also relayed stories from unidentified RBMA members about increasing costs, with market uncertainty already apparent at the association's annual meeting in March. Both have concerns that radiology practices and hospital systems may delay major capital investments for new imaging systems and related technologies, if prices climb significantly. The whiplash of tariffs being implemented and then reduced or paused—followed by threats of more tariffs or renegotiation of trade agreements—also is creating an uncertain business environment for radiology vendors and provider groups.
None of the major medical imaging manufacturers will say exactly where they source their components, nor where their imaging systems are manufactured. This is due to the deeply interconnected nature of international markets. In some cases, vendors produce components in the U.S. or elsewhere, send them to Mexico for assembly, and import the finished imaging systems into the U.S. That worked well to keep labor costs low in a free-trade market, but tariffs have now upended the model across all industries, experts tell Radiology Business.
Dave Fornell has covered healthcare for more than 17 years, with a focus in cardiology and radiology. Fornell is a 5-time winner of a Jesse H. Neal Award, the most prestigious editorial honors in the field of specialized journalism. The wins included best technical content, best use of social media and best COVID-19 coverage. Fornell was also a three-time Neal finalist for best range of work by a single author. He produces more than 100 editorial videos each year, most of them interviews with key opinion leaders in medicine. He also writes technical articles, covers key trends, conducts video hospital site visits, and is very involved with social media. E-mail: [email protected]