In-Office MRI Profitability
Can my medical practice make money with an in-office MRI?
In-office MRI Profitability: how many MRI scans will 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, you will likely 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 MRI 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 an MRI Imaging Center can cost between $1.9 million 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 complete set of business assumptions are ever the same.
Understanding your probable expenses is critical to achieving MRI Profitability!
Your expenses, including equipment, suite leasing, the many vendor and contractor expenses related to your MRI suite buildout, and personnel expenses, will be crucial to the financial success of your MRI imaging center.
Based on your needs, our project experience, the gathering of updated information, and successful negotiations with MRI manufacturers and suppliers, we can 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, from extremity MRI units up to 1.5, 3.0, or even a 7 Tesla unit, is available. This includes MRI magnets with the latest AI upgrades that provide up to 50% faster patient throughput. As 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, excellent customer service, and patient comfort. Whatever equipment you select, you must consider the cost of annual equipment maintenance contracts.
After analyzing your current or planned space for the MRI suite and considering any issues that we identify at this early stage, we can use current Architect and Builder cost data for your specific community to arrive at projected buildout costs for your particular MRI imaging center, including architect fees, all construction costs, and 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 MRI facility, with recommendations on determining realistic market compensation rates for your MRI technologist, front office staff, facility manager, and 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 about your MRI project's planning, design, buildout, and implementation. 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 six years that provides an accurate picture of each successive year's expected MRI scan revenue, expenses, and net practice revenue. The MRI Financial and Business Viability Analysis serves as a "road map" for successfully implementing 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 its initial construction using your unique medical practice information. However, this insight allows for adjustments to the plan before proceeding. 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 is invaluable when working with Project Partners, Banks, and Lenders. It provides verifiable assumptions and well-founded projections that can improve our clients' loan terms and opportunities. 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 essential 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 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 favorable 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 must 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 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 enriching 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 medical specialties across our country and the globe. One medical imaging industry source recently indicated that almost 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 grow strongly, we recommend you take your place at the table!
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