Introduction: Business Concepts in Radiology

1. Introduction:Business Concepts in Radiology

2. 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. Yousem’s online lecture series can be viewed at:http://webcast.jhu.edu/mediasite/Catalog/pages/catalog.aspx?catalogId=7e18b7d5-9c63-487e-aaf1-77a86f83b011Dr. Yousem’s project was funded through an RSNA Educational Grant

3. 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

4. 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

5. 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

6. 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

7. The Healthcare Web Government Regulation Medicare Insurers Hospitals How does the radiologist fit in? Physicians Medical Suppliers Patients Radiologists Referrers Non-Governmental Organizations Pharmaceuticals

8. The Radiologist’s Business Web Capital/ Equipment expense Tenure Research Academic Radiologists Malpractice Private Practice Leadership Marketing Entrepeuneurship

9. 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

10. 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?

11. 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

12. 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?

13. Key business concepts The Big Picture- • Leadership in Radiology Personal skills- • Malpractice • Employment Contracts

14. 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

15. 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)

16. 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

17. 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

18. 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