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    April 202618 min read

    The radiologist's paradox

    How Noridian's Medicare prepayment review puts radiologists on the hook for clinical records they do not control, and what diagnostic imaging groups are doing about it.

    By Roberto Jusino

    CEO and Co-Founder, ANEKO AI • Published 15 April 2026

    Executive summary

    In late March 2026, the American College of Radiology and the Radiology Business Management Association formally raised an operational issue that has been building inside diagnostic imaging for years. Noridian Healthcare Solutions placed the professional component of CPT 74177 and CPT 72148 under prepayment review through the Targeted Probe and Educate program. [1] [2]

    The burden lands on radiology groups whose radiologists do not control the referring record requested to establish medical necessity. When supporting documentation is incomplete, claims are denied; sustained denial rates can trigger CMS escalation paths.

    This paper has two parts: Part 1 states the current regulatory and industry facts from primary sources; Part 2 offers a forward operational view for imaging groups building resilience under sustained documentation scrutiny.

    Part 1. The Now

    The ACR and RBMA position

    On 26 March 2026, ACR announced support for a joint ACR and RBMA request asking Noridian to exempt the professional component of CPT 74177 and CPT 72148 from TPE prepayment review. [1] [2]

    Their argument is operational: hospital-based radiologists interpreting studies generally do not control source documentation required to justify medical necessity, yet they bear immediate denial exposure.

    Noridian, TPE, and the MAC landscape

    Noridian serves as MAC for Jurisdictions E and F. [3] Under TPE, selected services can be placed into up to three rounds of prepayment review with education between rounds; continued high denial performance may then be referred to CMS for additional actions. [4]

    TPE escalation pathway

    Stage 1

    Round 1 prepayment review with education

    Stage 2

    Round 2 prepayment review with education

    Stage 3

    Round 3 prepayment review with education

    Stage 4

    Referral to CMS

    • Extrapolation
    • ZPIC or RAC referral
    • Expanded prepayment review
    • Additional measures

    TPE escalation under CMS Program Integrity Manual Pub 100-08.

    The federal documentation standard

    Section 1862(a)(1)(A) of the Social Security Act limits payment to items and services that are reasonable and necessary. [5]

    42 CFR 410.32 governs diagnostic test coverage conditions, including ordering requirements tied to the treating physician standard. The time-of-order documentation expectation was further established in BBA 1997 Section 4317(b). [6]

    CMS guidance (MLN909160, October 2024) identifies incomplete progress notes and missing intent-to-order documentation as recurring causes of improper payment findings. [7]

    Federal documentation hierarchy

    Social Security Act Section 1862(a)(1)(A)

    Reasonable and necessary standard

    42 CFR 410.32

    Diagnostic test coverage conditions and treating physician order requirement

    Balanced Budget Act 1997 Section 4317(b)

    Time-of-order diagnostic information requirement

    The federal documentation standard for diagnostic imaging, established 1997 and in effect today.

    What CERT measures

    CERT uses statistically valid annual claim sampling to measure compliance with Medicare FFS coverage, coding, and payment rules. For FY 2024, CMS reported a 7.66% improper payment rate, representing $31.70 billion. [8] [9]

    CERT FY 2024

    $31.70B

    Medicare FFS improper payments, FY 2024

    7.66%

    Improper payment rate

    Insufficient documentation is a primary driver. CMS states this is not a measure of fraud.

    CMS Comprehensive Error Rate Testing Program, FY 2024 reporting period.

    What MACs identify as common documentation errors

    Noridian's JF Part B CERT common-error categories include imaging claims with:

    • Missing physician order or intent only
    • Missing physician order or intent and supportive documentation
    • Missing results or report only
    • Missing supportive documentation

    These categories frame how imaging documentation defects are operationalized during local CERT and related review activity. [10]

    Peer-reviewed evidence on imaging order data

    Hanna et al. (Emory, 2017) found incomplete clinical documentation at interpretation time in 33.4% of cases, with a subset of CT and ultrasound exams completed before provider notes began. [11]

    Rousseau et al. (Brigham and Women's, 2019) found HPI documentation completed before order entry in 23.1% of headache CT encounters and concept mismatch between notes and requisitions in 92.9% of those cases. [12]

    Peer-reviewed findings comparison

    Emory (Hanna 2017)

    600 emergency department cases

    • 33.4% incomplete documentation at report creation
    • 10% of CT exams completed before provider note started
    • 8% of ultrasound exams completed before provider note started

    Brigham and Women's (Rousseau 2019)

    666 ED head CT encounters

    • 23.1% HPI notes completed before order entry
    • 92.9% notes had different clinical concepts than requisitions

    Two academic medical center studies, same finding: the order does not carry the clinical context.

    What these facts describe together

    • Federal standards assign documentation responsibility upstream at order time.
    • CMS continues to identify insufficient documentation as a top improper-payment driver.
    • MAC-level error categories repeatedly surface missing orders and supportive records.
    • Peer-reviewed ED evidence shows frequent timing and content gaps between notes and orders.
    • ACR and RBMA have formally identified burden on hospital-based radiologists who do not own those records.

    Part 2. The Future

    Where operational infrastructure for imaging groups is heading

    The forward posture now developing in diagnostic imaging is infrastructure-first: building upstream controls that capture, validate, and preserve documentation context before the claim is exposed.

    Five capability categories

    Structured intake

    Validate required documentation against MAC, LCD, and payer criteria before non-urgent scheduling.

    Referrer callback

    Run structured callback workflows for missing fields with logged response and measured resolution time.

    Audit trail

    Capture every context exchange, field completion, and acknowledgement from order through claim.

    Closed-loop communication

    Preserve timestamped communication records for critical or unexpected findings with acknowledgement.

    Referrer visibility

    Measure performance by referring office so upstream variability can be addressed at its source.

    These capabilities sit upstream of the claim. They do not depend on clinical workflow changes by the radiologist.

    Why this direction, and why now

    Regulatory review pressure is not contracting. TPE is national, and targeted codes or jurisdictions rotate over time.

    The federal standard itself has remained stable. What changed is operational feasibility: modern data exchange and NLP pipelines now make context capture and retrieval practical at scale.

    Three converging forces

    Regulatory scrutiny expanding

    Federal standard unchanged

    Technology catching up

    Operational infrastructure becomes achievable, and necessary.

    Why diagnostic imaging groups are investing in upstream documentation infrastructure now.

    What this means for imaging group executives

    The emerging operating model treats order intake as infrastructure, not clerical overhead. In this model, by the time billing submits a claim, the supporting record is already complete and auditable.

    ACR and RBMA advocacy addresses immediate exposure for specific codes in specific jurisdictions. The durable strategic response remains local: each group's operational ability to produce complete records under scrutiny while protecting radiologist capacity.

    References

    [1] American College of Radiology. ACR Backs Fix to Burdensome Noridian TPE Reviews. 26 March 2026. https://www.acr.org/News-and-Publications/2026/acr-backs-fix-to-burdensome-noridian-tpe-reviews

    [2] Greeson TW. ACR and RBMA jointly urge change to Noridian prepayment review of professional component services for hospital-based radiologists. Reed Smith Viewpoints. 31 March 2026. https://www.reedsmith.com/our-insights/blogs/viewpoints/102mohi/acr-and-rbma-jointly-urge-change-to-noridian-prepayment-review-of-professional-co/

    [3] Noridian Healthcare Solutions. Jurisdiction E and Jurisdiction F program information. https://med.noridianmedicare.com/web/jeb

    [4] Noridian Healthcare Solutions. Targeted Probe and Educate (TPE), Jurisdiction E Part B. https://med.noridianmedicare.com/web/jeb/cert-reviews/targeted-probe-educate

    [5] Social Security Act, Section 1862(a)(1)(A). https://www.ssa.gov/OP_Home/ssact/title18/1862.htm

    [6] 42 CFR 410.32 and BBA 1997 Section 4317(b). https://www.ecfr.gov/current/title-42/chapter-IV/subchapter-B/part-410/subpart-B/section-410.32

    [7] Centers for Medicare and Medicaid Services. Complying with Medical Record Documentation Requirements, MLN909160. October 2024. https://www.cms.gov/files/document/certmedrecdoc10workgroup.pdf

    [8] Centers for Medicare and Medicaid Services. Comprehensive Error Rate Testing (CERT) Program. https://www.cms.gov/data-research/monitoring-programs/improper-payment-measurement-programs/comprehensive-error-rate-testing-cert

    [9] Centers for Medicare and Medicaid Services. Fiscal Year 2024 Improper Payments Fact Sheet. 15 November 2024. https://www.cms.gov/newsroom/fact-sheets/fiscal-year-2024-improper-payments-fact-sheet

    [10] Noridian Healthcare Solutions. CERT Common Errors, Jurisdiction F Part B. https://med.noridianmedicare.com/web/jfb/cert-reviews/cert/common-errors

    [11] Hanna TN, Rohatgi S, Shekhani HN, Dave IA, Johnson JO. Clinical information available during emergency department imaging order entry and radiologist interpretation. Emergency Radiology. 2017;24(4):361-367. https://link.springer.com/article/10.1007/s10140-017-1488-4

    [12] Rousseau JF, Ip IK, Raja AS, Schuur JD, Khorasani R. Can Automated Retrieval of Data from Emergency Department Physician Notes Enhance the Imaging Order Entry Process? Applied Clinical Informatics. 2019;10(2):189-198. https://pmc.ncbi.nlm.nih.gov/articles/PMC6426724/

    Written by Roberto Jusino. Last updated: 2026-04-15.