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. Yousems online lecture series can be viewed at:

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

Dr. Yousems 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 Government
Regulation Medicare
Insurers Hospitals
How does the radiologist fit in?
Physicians
Patients Medical Suppliers
Radiologists Referrers

Non-Governmental
Pharmaceuticals
Organizations
The Radiologists Business Web

Capital/ Tenure
Equipment expense

Research Academic
Radiologists Malpractice
Private Practice

Leadership

Marketing
Entrepeuneurship
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
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=7e
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 #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