MRI Consulting Group Blog
Can my medical practice make money with an MRI?
How many MRIs do I need each month to be profitable?
By: Stephen A. Veals \ CEO MRI Consulting Group
Utilizing very conservative assumptions, if your medical group currently refers out at least 160 MRI scans per month, then you are very likely to benefit from a profitable MRI!
Having both surgeons and physician assistants making referrals makes experiencing solid profitability with your MRI even more probable.
"What should I know about expenses, revenue, and profitability issues before I start an MRI project?"
The decision to install an MRI is a serious and exciting business undertaking. Acquiring the magnet and building out an MRI Imaging Center can cost between $1.9 million dollars and $2.4 million dollars or more. We help each client understand the expenses they will encounter, their projected reimbursement per MRI scan, and the revenue and profitability they can expect in their specific MRI Project. No questions are left unanswered for our clients.
Understanding your MRI Center Expenses
There is much more to consider than MRI scan volume, and no two MRI projects or their full set of business assumptions are ever the same.
Understanding your probable expenses is critical to the success of your MRI Project!
A crucial component for the financial success of your MRI Imaging Center will be your expenses, including costs for equipment, suite leasing, the many vendor and contractor expenses related to your MRI suite build-out, and personnel expenses.
Based on your needs, our project experience, the gathering of updated information, and successful negotiations with MRI manufacturers and suppliers, we will be able to project a probable price of the MRI equipment that will meet your needs, whether leased or purchased, including early buyout options. A wide range of MRI equipment is on offer, from extremity MRI units up to 1.5, 3.0, or even a 7 Tesla unit. This includes MRI magnets with the latest AI upgrades that provide up to 50% faster patient throughput. To create a high-quality, profitable, and sustainable MRI Imaging Center, your MRI entity should offer competitively priced scans, fast patient throughput, high-resolution, high-quality scans, and excellent customer service and patient comfort. Whatever equipment you select, the cost of annual equipment maintenance contracts must also be taken into consideration.
After an analysis of your current or planned space for the MRI suite, taking into consideration any issues that we identify at this early stage, we can work with current Architect and Builder cost data for your specific community to arrive at projected buildout costs for your specific MRI imaging center including architect fees, all construction costs, plus any necessary furnishings.
In all markets, we can determine the expenses related to Tele-radiology, Radiology interpretation, scan supply, and necessary upgrades to your IT system and acquisition of large-bandwidth high-speed fiber cabling.
We can advise you on the optimal staffing for your particular MRI facility, with recommendations on determining realistic market compensation rates for your MRI technologist, front office staff, facility manager, and any other personnel.
Where should I start to determine if an MRI Imaging Center Project is right for me?
Start by creating an accurate Financial and Business Viability Analysis for any MRI Project you're considering. The MRI Financial and Business Viability Analysis will help determine if your MRI Imaging Center will be profitable and what steps are necessary to achieve profitability.
MRI Consulting Group can assist you in gathering detailed information and performing a comprehensive analysis to make informed decisions for the planning, design, build-out, and implementation of your MRI project. The creation of the MRI Financial and Business Viability Analysis is the crucial first step toward a successful MRI project. We take pride in working closely with clients to produce a document based on the specifics of their medical practice and community, ensuring that the assumptions are grounded in facts.
Our goal is to create a set of projections over a six-year period that provides an accurate picture each successive year of the expected MRI scan revenue, expenses, and resulting net practice revenue. The MRI Financial and Business Viability Analysis serves as a "road map" for the successful implementation of your MRI Magnet into your medical practice.
It's important to note that this is not a one-size-fits-all analysis.
Each financial analysis is customized based on the individual practice, clinical MRI ordering profile, practice insurer agreements, and specific payer mix profile. The accuracy of the Financial and Business Viability Analysis is essential for making informed decisions.
In some cases, the analysis may reveal that your MRI center might not be profitable based on the initial construction using your unique medical practice information. However, this insight allows for adjustments to the plan before moving forward. Whether it's due to decreased MRI scan volume, decreased reimbursement per MRI scan, or excessive expense burdens, we can assist you in understanding what changes are needed and possible to create a profitable MRI Imaging Center.
The MRI Financial and Business Viability Analysis serves as an invaluable tool when working with Project Partners, Banks, and Lenders. It provides verifiable assumptions and well-founded projections that can lead to improved loan terms and opportunities for our clients. Lenders value this analysis as a serious financial projection of the probable performance of your MRI Project.
Creating an accurate MRI Financial and Business Viability Analysis early on is not only important but critical to the success of any MRI project.
A vision, without a plan, is a hallucination!
How can I be sure that insurers will pay for my MRI scans?
It's important to note that the process for getting insurers to pay for your MRI can vary by location and insurer. The MRI pre-approval process with insurers can take several months, so it's crucial to incorporate this early on in your MRI project planning. While there are multiple steps for approval and contracting with insurers for your MRI, it's rare for insurers not to contract with a medical group if they have gone through the pre-approval process. Our consulting group has a successful track record of negotiating positive agreements with insurer groups for physicians to use their MRI.
How can I ensure the long-term profitability of my MRI imaging center?
To ensure ongoing payments from insurers for the diagnostic use of your MRI with your patients, you will need to effectively navigate each insurer's specific Prior Authorization Approval process. Additionally, medical practice physicians and physician assistants must provide thorough documentation regarding the clinical need for the MRI. Clear communication between your front office and back office personnel is crucial for success in the MRI Prior Authorization process. As your staff gains experience, insurers will come to trust their judgment and skills, which will in turn help your staff work successfully with each insurer over the long term. Good clinical documentation, follow-up, patience, and persistence with each insurer will be necessary for obtaining prior approval and payment, ultimately ensuring the long-term profitability of your MRI imaging center.
Do you have a recent MRI Imaging Center Success Story?
Recently, we facilitated the merger of two orthopedic practices to create an Orthopedic and Spine Center that generated the scan volume necessary to support a highly profitable MRI and made possible a new and profitable Ambulatory Surgery Center.
Yes, your medical practice can make money with an MRI.
The Opportunity and the Reward
Building and owning an MRI Imaging Center can be an extremely rewarding and valuable opportunity, and the industry numbers tell a compelling story. MRI (Magnetic Resonance Imaging) is a clinically valuable medical imaging diagnostic tool utilized by nearly all of the medical specialties across our country and across the globe for that matter. One medical imaging industry source recently indicated that nearly 40 million MRI scans are performed annually in the United States alone, with over $100 billion in annual revenue! Because the MRI Imaging Center business is forecast to continue to grow very strongly, we recommend that you take a place at that table!