GE Healthcare reported profits dipped 1 percent in the third quarter, which Jeffrey Immelt, CEO and chairman, attributes to the Deficit Reduction Act (DRA) of 2005.
The DRA went into effect of Jan. 1 this year and puts caps on Medicare reimbursement levels for imaging procedures.
GE reported revenue of $4.1 billion in the third quarter, up 4 percent compared with $3.9 billion for the same period a year ago. The operating income dipped to $692 million from $699 million, the company reported.
The company posted a total net income of $5.5 billion in the third quarter, up 14 percent compared with $4.7 billion for the same period last year. The total revenue climbed 12 percent to $42.5 billion.
For the nine-month period, GE's net income rose to $15.5 billion compared with $14.3 billion the year before. The revenue was up 12 percent to $124.2 billion from $110.5 billion.