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 DevelopmentDirector 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?
catalogId=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,UnitedStates,2005and2007
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,UnitedStates,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,UnitedStates,2010
The Healthcare Web Government
Regulation Medicare
Insurers Hospitals
Howdoestheradiologistfitin?
Physicians
Patients MedicalSuppliers
Radiologists Referrers

NonGovernmental
Pharmaceuticals
Organizations
The Radiologists Business Web

Capital/ Tenure
Equipmentexpense

Research Academic
Radiologists Malpractice
PrivatePractice
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=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 #76641496. U.S.
Government Printing Office, Washington, DC 20402