Introduction: Business Concepts in Radiology

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IntroductionBusiness Concepts in Radiology
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A Special Thank You to Dr. David M. Yousem,
M.D., M.B.A.?Professor, Department of
Radiology?Vice Chairman of Program
Development?Director of Neuroradiology?Johns
Hopkins Hospitalfor allowing the use of the
material/content in this presentationDr.
Yousems online lecture series can be viewed
athttp//webcast.jhu.edu/mediasite/Catalog/pages
/catalog.aspx?catalogId7e18b7d5-9c63-487e-aaf1-77
a86f83b011Dr. Yousems project was funded
through an RSNA Educational Grant
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Lecture goals

• To explore the value of business knowledge for
  the radiologist
• To introduce business concepts pertinent for
  radiologists
• Provide additional resources/material for
  business concepts

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The value of business knowledge A brief look at
healthcare in the United States

• In 2005, the United States spent 2 trillion on
  health care, 16 of GDP, an average of 6,700 per
  person.
• In 2007, the United States spent 2.2 trillion on
  healthcare, an average per capita of 7,400.
• Healthcare is big business
• Studies show doctors are lack even basic business
  knowledge

Health, United States, 2005 and 2007
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Imaging in Healthcare

• The 2009 Health and Human Services Health Summary
  specifically included a special section on
  Medical Technology.
• Topics discussed
• Increased imaging availability and utilization
• Inappropriate imaging
• Medicare part B spending dedicated to imaging
  increasing from 6.9 billion (2000) to 14.1
  billion (2006)
• Medicare accreditation requirements for imaging
  facilities

Health, United States, 2010
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Imaging in Healthcare

• Ambulatory care visits with
• MRI/CT/PET scans ordered
• or provided during the visit,
• by age and location
• US 1996-2007
• Imaging is big business
• (and growing).
• OPD - outpatient dept.

Health, United States, 2010
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The Healthcare Web
Government
Regulation
Medicare
Insurers
Hospitals
How does the radiologist fit in?
Physicians
Medical Suppliers
Patients
Radiologists
Referrers
Non-Governmental Organizations
Pharmaceuticals
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The Radiologists Business Web
Capital/ Equipment expense
Tenure
Academic
Research
Radiologists
Malpractice
Private Practice
Leadership
Marketing
Entrepeuneurship
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Healthcare, business and the RADIOLOGIST

• The system is complex, with many players, each
  with competing motivations and goals.
• Imaging specifically is a financially significant
  component of the healthcare system, with many
  interested parties.
• Radiologists are well trained as physicians,
  advisors on imaging, and as interpreters of
  images.
• But, can you be optimally successful at providing
  patient care and applying imaging skills if you
  do not have a basic knowledge of the system
  around you?
• Business knowledge should be a fundamental
  component of radiology training, and is key to a
  radiologists success

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What does the Radiologist need to know?

• Which practice model should I join?
• If solo practice
• Financing office space, staff, and equipment
• Many payers and types of payments are available,
  which should I accept?
• Malpractice insurance Which kind and how much?
• If group/hospital practice
• Employee or partner
• Individual practice valuation
• Will I be exposed if the practice goes under or
  members are involved in payment fraud?

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Healthcare, business and the radiologist

• With this knowledge you can
• Develop skills in strategic planning
• Become a leader in your practice and in the field
• Accomplish more through your interactions with
  practice managers, administrators, clients and
  suppliers
• Streamline your organization, reducing expenses,
  and increasing profits

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Healthcare, business and the radiologist

• The goal of this series will be to provide a
  basic business education, structured for the
  young radiologist
• What topics are covered?

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Key business concepts

• The Big Picture-
• Leadership in Radiology
• Personal skills-
• Malpractice
• Employment Contracts

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Key business concepts

• Practice-
• Credentialing, Accreditation, and Certification
• Managing Expenses
• Vernacular of Accounting
• Employment Contracts
• Business Incorporation
• Making Money in Radiology, Resource Based
  Relative Value
• Unit System, and Practice Valuation
• Second Opinion Consultations

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Available Resources

• Books
• Radiology Business Practice How to Succeed,
• Yousem, Beauchamp Jr, (2008)
• Radiology Administrator A Business Guide
• Stockburger (1989)
• Total Quality in Radiology A Guide to
  Implementation
• Adams, Arora (1994)
• Be in Charge A Leadership Manual
• Margulis (2002)

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Available Resources

• Online courses
• Business of Radiology, Dr. David Yousem
• http//webcast.jhu.edu/mediasite/Catalog/pages/cat
  alog.aspx?catalogId7e18b7d5-9c63-487e-aaf1-77a86f
  83b011
• Other CMEinfo courses
• Economics of Imaging
• Leadership Strategies
• Radiology Societies
• RSNA, RBMA, ACR, and Journal of the ACR, AJR

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Summary

• The healthcare system is complex and expensive,
  and imaging plays a large and expanding role
• Radiologists are significant stakeholders, and
  are well trained as imagers, but lack the basic
  business skills necessary for navigating the
  complex system
• There are several resources available to help
  radiologists gain the required knowledge
• This series is one of those resources, and will
  cover basic business topics essential for the
  radiologist

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Other Citations

• National Center for Health Statistics, Health,
  United States, 2005 With Chartbook on Trends in
  the Health of Americans. Hyattsville, MD 2005,
  Library of Congress Catalog 76641496. U.S.
  Government Printing Office, Washington, DC 20402
• National Center for Health Statistics, Health,
  United States, 2009 With Special Feature on
  Medical Technology. Hyattsville, MD 2010,
  Library of Congress Catalog 76641496. U.S.
  Government Printing Office, Washington, DC 20402