By Larry Siebs
Today, we face a US healthcare market in flux due to population changes, rising consumerism, and a volatile political climate. Emerging payer steerage movements, like Anthem’s decision to stop covering MRIs and CT scans performed in hospitals on an outpatient basis, causes a highly unpredictable market for imaging services. As a result, many providers are forced to seek asset procurement strategies that minimize a financial risk.
Advancements in technology are necessitating upgrades. New regulations are rendering technology obsolete. Rapidly aging populations are altering imaging volumes dramatically. These changes have become risks and are narrowing the planning periods for capital-intensive diagnostic imaging technology. Add in declining reimbursements, and it becomes increasingly difficult to keep pace with the technology needs of your radiology department with declining capital budgets. Healthcare administrators are being forced to reevaluate procurement options as an outright purchase is no longer guaranteed to be the most cost-efficient option for keeping in stride with market changes.
The question becomes, how can you – healthcare administrators – determine the most cost-effective procurement option of diagnostic imaging technology in an evolving market?
The answer is: Net Present Value (NPV) comparative cost analysis.
In planning and budgeting capital projects, hospital administrators can apply the objective NPV cost analysis to all procurement options and determine which option is the least costly over a planning period. The NPV of ALL procurement choices – lease, purchase, or a functional service option – should be first calculated then weighed against each other to make the most cost-effective decision that meets the needs for your facility and patient population.
Join me for my upcoming breakout session, with special guest speaker David Waldron, CEO of Traction Business Development, LLC at the AHRA 2018 Annual Meeting, “Finding your ROI – A New Frontier in Procurement,” on Tuesday, July 24 at 8:15 AM to better understand and analyze your diagnostic imaging procurement options, as well as their financial short term and long term implications. Our goal with this presentation is to give you the tools needed to make an objective procurement decision for your next imaging project and modeling that into a business case catered to the financial considerations of your organization’s stakeholders. You can also stop by booth #926 in the exhibit hall to meet our team and learn how Shared Imaging can provide an imaging solution that fits your needs.
Larry Siebs is the President and CEO of Shared Imaging. He can be reached at firstname.lastname@example.org.