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 of Program Development Director 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: d=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 Imaging is big business (and growing). *OPD - outpatient dept. *Health, United States, 2010

The Healthcare Web Physicians Radiologists Government RegulationMedicare Insurers Hospitals Patients Pharmaceuticals Non-Governmental Organizations Medical Suppliers Referrers 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 18b7d5-9c63-487e-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– U.S. Government Printing Office, Washington, DC National Center for Health Statistics, Health, United States, 2009; With Special Feature on Medical Technology. Hyattsville, MD: 2010, Library of Congress Catalog #76– U.S. Government Printing Office, Washington, DC 20402