Introduction: Business Concepts in Radiology. A Special Thank You to: Dr. David M. Yousem, M.D., M.B.A. Professor, Department of Radiology Vice Chairman.

Introduction:Business Concepts in Radiology

A Special Thank You to:

Dr. David M. Yousem, M.D., M.B.A.Professor, Department of RadiologyVice Chairman of Program DevelopmentDirector of Neuroradiology

Johns Hopkins Hospital

for allowing the use of the material/content in this presentation

Dr. Yousem’s online lecture series can be viewed at:http://webcast.jhu.edu/mediasite/Catalog/pages/catalog.aspx?

catalogId=7e18b7d5-9c63-487e-aaf1-77a86f83b011

Dr. Yousem’s project was funded through an RSNA Educational Grant

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

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

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

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

The Healthcare Web

Physicians

Radiologists

Government

Regulation Medicare

Insurers Hospitals

Patients

Pharmaceuticals Non-GovernmentalOrganizations

Medical SuppliersReferrers

How does the radiologist fit in?

The Radiologist’s Business Web

Radiologists

Private Practice

Academic

Capital/Equipment expense

Entrepeuneurship

Malpractice

Marketing

Tenure

Leadership

Research

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 radiologist’s success

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?

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

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?

Key business concepts

The Big Picture-• Leadership in Radiology

Personal skills-• Malpractice • Employment Contracts

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

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)

Available Resources

• Online courses:– Business of Radiology, Dr. David Yousem

http://webcast.jhu.edu/mediasite/Catalog/pages/catalog.aspx?catalogId=7e18b7d5-9c63-487e-aaf1-77a86f83b011

• Other CMEinfo courses: – Economics of Imaging – Leadership Strategies

• Radiology Societies:– RSNA, RBMA, ACR, and Journal of the ACR, AJR

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

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 #76–641496. 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 #76–641496. U.S. Government Printing Office, Washington, DC 20402