Radiology practice managers speak out against Trump administration tariffs

Update April 10 at 6:30 a.m. CT: The White House said on Wednesday that it is pausing reciprocal tariffs for three months while increasing those levied against China to 125%, the American Hospital Association reported. A 10% universal tariff on imported goods from all countries that begain April 5 remains in effect. 

AdvaMed shared a statement the afternoon of April 9 in response to the update: 

“We are encouraged by the president’s announcement of a 90-day pause on reciprocal tariffs. This is an important decision that restores some short-term certainty to global markets, including the American medtech industry, which is No. 1 globally," CEO Scott Whitaker said. "Moving forward, we will spend the next 90 days working with the president and his senior team to ensure the unique role of the medtech industry is protected, with the hope that the ultimate outcome is ‘zero for zero’ tariffs on medtech with all key trading partners.”

Medical practice managers are speaking out against tariffs levied by the Trump administration and the potential impact they’ll have on the profession. 

The White House first announced the changes on April 2, which at the time included a 10% universal tariff on goods imported from all countries. Imaging lobbying group AdvaMed—which represents key manufacturers such as Canon, GE HealthCare, Philips and Siemens Healthineers—criticized the decision last week. 

Now, the Medical Group Management Association also is weighing in on the debate. The MGMA represents over 15,000 group practices employing 350,000 physicians in radiology and other specialties. 

“For medical group practices, the implications of tariffs are simple dollars and cents,” Anders Gilberg, senior VP of government affairs for the association, said in a statement April 3. “From basic supplies to lifesaving medical devices, physician practices rely on a global supply chain, yet their ability to pass on increased costs is almost nonexistent.”

He noted that practice expense calculations in fee schedules with commercial payers, Medicare and Medicaid are already fixed. Such agreements do not account for cost increases stemming from new tariffs or taxes. 

“Already reeling from recent Medicare reimbursement cuts and multiple years of post-COVID inflation, medical groups will be forced to absorb any increased costs to the detriment of their businesses and, ultimately, patients,” Gilberg added. “While there may be longer-term goals in the administration's trade strategy, if implemented as proposed, the potential consequences of tariff-induced cost increases may be severe, especially for medical practices struggling to keep their doors open in an already challenging healthcare environment.”

The Radiology Business Management Association—which represents over 2,000 industry professionals including a large contingent of private practices—echoed the MGMA’s sentiments. Radiologists have faced “significant” reimbursement cuts in recent years while the cost of running a practice “continues to rise.” 

“The current Medicare Physician Fee Schedule formula does not accurately reflect the operational cost of running a radiology practice nor the additional burden that will potentially be imposed by these tariffs,” Linda Wilgus, RBMA co-executive director, told Radiology Business. “Radiology groups have already had to absorb increased costs for contrast agents used in many lifesaving imaging studies, which have doubled in the past five years. These tariffs will significantly impact our industry, delaying equipment purchases and challenging our ability to maintain quality care. We look forward to collaborating closely with our colleagues in the industry and medical equipment manufacturers to find a workable solution.”

Meanwhile, AdvaMed on Monday continued to urge the administration to exempt imaging and other medical devices from tariffs. The medtech association has teamed with nine other trade groups pushing for modifications to U.S. tariff policies. Others involved include the American Dental Association, America's Essential Hospitals, the AAMC and Prevent Cancer. They highlighted a recent survey of 200 industry professionals, conducted by Black Book Market Research. It found that 80% of respondents expect hospital and health system costs to jump 15% in the next six months, due to increased import fees. 

“Given the important role of our work in making America healthy, we are concerned that tariffs placed on medical and dental equipment threaten to disrupt the supply chain and raise costs for these critical items,” they wrote to U.S. Trade Representative Jameison Greer. “This ultimately places further financial pressure on providers, hospitals and health systems, particularly those located in rural and medically underserved areas.”