Berlex Laboratories Commends National Coalition For Quality in Diagnostic Imaging Services' Success in Medicare Reimbursement Decision.

MONTVILLE, N.J.--(BUSINESS WIRE)--Nov. 6, 1998--Berlex Laboratories, Inc. today commended the National Coalition for Quality in Diagnostic Imaging (NCQDIS) for its leadership in demonstrating to the Health Care Financing Administration (HCFA) omissions in cost analysis data for diagnostic imaging technical component services. As a result of NCQDIS' efforts, HCFA will maintain current Medicare payment levels for these technical services through 1999.

Stated Jorge Engel, President-Berlex Laboratories, "We believe NCQDIS acted responsibly in presenting its comprehensive cost data to HCFA. High-quality, cost-effective health care begins with a timely and accurate diagnosis, and maintaining a state-of-the-art imaging center is capital-intensive. If the radiology community is inadequately reimbursed for their technical services, imaging centers may have to close or reduce services. This would negatively impact overall healthcare practice. Reimbursement levels from all third-party payers must accurately reflect the true cost of doing business. In collecting and presenting its industry data, NCQDIS has provided an important public service, and Berlex is proud to be affiliated with this organization."

In compliance with the Balanced Budget Amendment of 1994, HCFA surveyed Radiologists to collect data to create a Medicare cost-based payment structure for imaging procedures. The HCFA survey analysis showed a $58.00 per hour cost for radiology services. Consequently, HCFA was proposing a 24% reduction in the Medicare payment allowance for the technical component services for diagnostic imaging procedures.

Using the same methodology, NCQDIS conducted a separate survey of 122 imaging centers and determined that the average cost of operating an imaging center is closer to $402.00 per hour. These costs include the technical component services such as equipment, staffing, and maintenance, as well as the shielding, utility, and financing expenses required to establish diagnostic imaging centers. NCQDIS met with HCFA in September to highlight discrepancies between the HCFA and the NCQDIS cost data. NCQDIS will continue to work with HCFA to assure that Medicare payment levels reflect accurate costs for technical services.

Berlex Laboratories, Inc. is a founding member of NCQDIS which was established in 1997 to monitor industry-related regulatory and legislative issues and to provide information to government agencies. Currently NCQDIS has 17 member organizations representing 600 outpatient diagnostic imaging centers and the 70,000 members of affiliated societies. NCQDIS membership is open to hospital and free-standing diagnostic imaging sites, manufacturers, and societies. For more information on NCQDIS, contact Cherrill Farnsworth, Executive Director, at 281-447-7000 or visit the Berlex exhibit at RSNA.

Berlex Laboratories, Inc. is committed to developing novel therapeutics that address unmet medical needs. Berlex researches, manufactures, and markets ethical pharmaceuticals in three strategic areas: Diagnostic Imaging, Female Healthcare, and Therapeutics for life-threatening and disabling diseases. Berlex business divisions are located in Montville and Wayne, New Jersey and in Richmond, California.