MRI Consulting Group-Frequently Asked Questions (FAQ’s)
Can my medical group make money owning an MRI unit?
Yes, your medical group can make a considerable amount of money owning an MRI Magnet!
Please read my note on MRI Imaging Center Client Profitability. Here is a partial quote; “I remember fondly, and with a significant amount of satisfaction, following the first year of MRI Imaging Center operation, reviewing the financials for the physician group with our CPA, and discussing the distribution of $1,000,000 in profit from the MRI Imaging Center among the five physician owners!”
With all expenses accounted for, including project financing, our clients have achieved an annual net return on investment of 50%-65%.
The amount that can be earned will depend on several factors, including, but not limited to, scan volumes, scan reimbursement, and specific center expenses. Please see the Blog Article on this site: Can my medical practice make money with an MRI?
MRI Consulting Group has created numerous high-quality MRI Financial and Business Viability Analyses for our clients and provided a strong roadmap for their realized MRI profitability and success!
Module # 3 How Can I ensure my MRI Imaging Center is Profitable?
Schedule a complementary call with our group through our Calendly link, and we can discuss this question further and understand your possible project needs!
What will it cost to put an MRI Magnet into my medical practice?
If you are going to embark on the planning and buildout of an MRI Imaging Center, project costs can conservatively range from $1.9 million to $2.4 million. However:
$1.4 million of the project cost represents the price of the MRI Magnet if purchased. Ideally, the magnet is not purchased but is expensed monthly over several years under a competitive equipment lease agreement.
The remaining project costs are typically related to building site remodeling expenses.
Our clients have routinely obtained lender financing and equipment leasing agreements that cover 80% - 90% of the remaining project costs.
With all expenses accounted for between project financing and equipment leasing agreements, this means that 80% to 90% of the total project costs will be covered, leaving only 10% to 20% as cash contributions.
In this scenario, our clients have achieved an annual net return on their investment of 50%-65%.
You will want to know, in advance and early on, if your MRI Imaging Center will be profitable and exactly how profitable it will be. We can provide that answer!
Module # 3 How Can I Ensure My MRI Imaging Center is Profitable?
Banks and other lenders will want to review a well-constructed MRI Imaging Center Financial and Business Viability Analysis. We do this well, and you will benefit from it as you embark on your MRI Imaging Center Project!
We have been very successful in working with lenders. With a solid medical practice, good annual financial statements, and consistent annual cash flow, we have assisted in securing 90/10 loan financing and non-SBA funding requirements for their MRI Imaging Center Project. We have secured excellent funding terms and conditions with high-quality national and regional lenders. We always aim for a best-case scenario of 10% of the project cost out of your pocket.
If your medical practice does not have the cash flow or the lender-quality financials to obtain this preferential treatment from lenders, we can assist you. We can identify whether your practice is subject to expense creep, is being paid under-market rates for your existing managed care contracts. Furthermore you may be subject to many familiar and correctible issues that take money out of your bottom line.
Schedule a complimentary call to our group through our Calendly link, and we can discuss this question further and come to understand your possible project needs.
How long will it take to Plan, Design, Build, and Implement an MRI Imaging Center?
That can vary greatly depending on several factors, including but certainly not limited to the following: Do you currently have a Suitable Space for the planning, design, buildout, and implementation of your MRI Magnet? A great deal goes into what constitutes a Suitable Space. That can include but is certainly not limited to the size and configuration of the buildout space available and cost considerations per building square footage. Possible electromagnetic interference, necessary building magnet delivery access and location, and the ability to create ground floor slabs on grade are all important to be known in planning and development for your MRI Imaging Center.
What are the client requirements and clinical needs for the group MRI Magnet? Medical Group Financial Analysis and Financing Requirements need to be determined. Medical Architects and Suitable Building Contractors need to be interviewed and retained. Our website materials provide a strong overview of the intricacy of these MRI Imaging Center Plan, Design, Build, and Implementation Projects.
Under the best-case scenario, with no project creep, minimal delays, and early retention of our Project Consultant, along with strong client support, you can expect a minimum of eight months for the Planning, Design, Buildout, and Implementation of your MRI Imaging Center Project. The role of our Project Consultant is crucial in ensuring a smooth project execution, which can significantly impact the project timeline. We understand the unique nature of each community, medical group, and setting, and we will tailor our approach to meet your specific needs.
While in some cases, the project timeline for these projects can extend from 12 to 18 months, we are committed to keeping the project on track and within the estimated timeline. Our dedication to meeting the project deadlines is unwavering, and we will work diligently to ensure the successful completion of your MRI Imaging Center.
Schedule a complimentary call with our group through our Calendly link, and we can discuss this question in greater depth and review your possible project needs!
How quickly can my MRI Imaging Center be Profitable?
Clients who have benefited from our MRI Imaging Center Financial and Business Viability Analysis understand the framework and timeline for profitability before they begin their project.
In the first five months of your new MRI imaging center's business, you must anticipate subsidizing operations and all expenses.
If, after seven months, your MRI Imaging Center is still reliant on physician owners' funding without a corresponding increase in scan revenue, it's a red flag. Delaying action could lead to irreversible financial losses. Our consulting services can help you avoid this scenario.
A well-planned MRI Imaging Center will be more than worth the expenditure of money and work necessary to make it happen. Done well, an MRI Imaging Center is an extremely valuable ancillary revenue stream that is the gift that keeps on giving.
Please read my note on MRI Imaging Center Client Profitability. Here is a partial quote; “I remember fondly, and with a significant amount of satisfaction, following the first year of MRI Imaging Center operation, reviewing the financials for the physician group with our CPA, and discussing the distribution of $1,000,000 in profit from the MRI Imaging Center among the five physician owners!”
Don't let uncertainty about your MRI Imaging Center's profitability linger. Schedule a complimentary call with our team via our Calendly link. We can provide answers to your questions and offer guidance on your project's financial viability.
Can my current MRI Imaging Center be more Profitable?
If your MRI Imaging Center is not earning as much as you anticipated in net profit every month, your MRI Imaging Center can be made more profitable. That is what we do!
If you are earning less revenue than you had planned to receive, earning less money per individual MRI Scan than you had projected, or having higher expenses than you had planned, rest assured that real assistance is available for your MRI Imaging Center, with the potential for significant revenue growth.
MRI Consulting Group has pioneered and can implement a highly individualized, IN-DEPTH BUSINESS ANALYSIS. Based on your MRI Imaging Center Performance Data, we will utilize that information to create and implement an individualized ACTION PLAN for improved and sustained performance for your specific MRI Imaging Center.
Schedule a complimentary call to our group through our Calendly link, and we will answer this question to your satisfaction and come to understand your possible project needs!
What are some of the common yet correctable issues that impair the profitability of an MRI Imaging Center?
*Not enough MRI scans were performed. An inadequate volume of referrals to the MRI Center.
*Lower average reimbursement per MRI scan. Not earning enough revenue per MRI scan due to a number of fully correctable events, including poorly negotiated or out-of-date managed care contracts.
*Excessive MRI Magnet Costs, poor lease terms, purchase terms that are too short, and not competitive purchase rates. Poor service agreements from the manufacturer or supplier.
*Poorly chosen building site location, resulting in poor image quality and image artifacts due to Electromagnetic Interference, and other scan resolution and interpretation issues. Doctors do not refer patients to the MRI Imaging Center.
*Excessive MRI equipment mechanical downtime due to many potential issues, including poor design and build plan, HVAC events leading to MRI shutdown, and more.
*Start-up costs were not adequately incorporated in the original project bank loans. The expenses all come due over too short a period, i.e., three to five years instead of seven to ten years.
*Inadequate project cash flow due to Managed Care Insurer contract agreements not being completed by the time of your MRI Center Startup.
*Excessive personnel costs include too many employees, a high pay rate, an inefficient staffing schedule, and poor allocation of personnel duties.
*Poor coordination and understanding of MRI throughput and patient Scheduling, inadequate number of MRI scans per day.
*Inexperienced/ less effective MRI Imaging Center Management.
Schedule a complimentary call with our group through our Calendly link, and we can discuss this question further and understand your possible project needs!
Exactly how can MRI Consulting Group help us?
- We can assist with turning around an existing but underperforming MRI Center.
- Guidance through the decision-making process to determine if an MRI is right for you and your practice and the creation of the MRI Financial and Business Viability Analysis.
- Selection of your MRI equipment for your practice and needs.
- Negotiating the best lease/ project finance terms and packages.
- Overseeing the planning and build-out of your site and the installation of your MRI equipment.
- Negotiating your managed care contracts.
- Recruitment and onboarding of skilled MRI Technicians and Center Managers.
- Coordinating the process of Certification for your MRI.
At each step along the way, there is a great amount of detail, and we tried to cover that in-depth throughout this website and each of the 19 consulting and assistance modules we have outlined in some detail.
The Plan, Design, Build, and Implementation of your Profitable MRI Imaging Center are available in two levels of service: Full Turnkey Project Assistance and Coaching, as needed MRI Project Assistance.
The fundamental difference comes down to this:
Would you like to have everything professionally managed for you? At the same time, you make the high-level decisions that we help you with, but we manage the day-to-day implementation of those decisions until your MRI is ready to go to work for you. This is Full Turnkey Project Assistance. We do it all for you.
Or would you rather be more hands-on, day-to-day? Perhaps you have in-house or other known and trusted resources to manage much or some of the process. Still, you would like to be sure you have access to expert guidance and information along the way, especially where the issues are very significant. This is Coaching As Needed Project Assistance.
The full Turnkey MRI Project Assistance service line offers comprehensive owner representation services for all 19 major project areas of your MRI imaging center!
If you are a surgeon, that is what you are great at doing! Your time is valuable and should not be utilized to take on the many steps and intricate details needed to plan, design, build, and implement without expensive rework, your crucial new ancillary service line and your profitable MRI imaging center. From concept to fruition, from dirt to done, we are experienced, tested, and proven specialists who coordinate your profitable MRI imaging center's planning, design, buildout, and implementation. We make sure your dream project goes exceedingly well, and we work to deliver projects on time and budget. We have done so with remarkable results even in the middle of the Pandemic and with many unanticipated external constraints. We do this very well!
For your guidance, a typical TurnKey project will last as little as eight months and can go on for twelve to eighteen months. We work closely with you to arrive at a Turnkey Consultant Agreement.
Schedule a complimentary call with our group through our Calendly link, and we can discuss this service line to your satisfaction and understand your possible project needs!
Coaching, As Needed MRI Project Assistance service line offers “As Needed” Assistance to physicians or groups that may want some amount of specified assistance in any one or more of the 19 total areas of Planning, Design, Buildout, and Implementation where we help our clients and their teams. We have crucial experience, contacts, critical time, and resource-saving expertise to offer on an "As Needed" coaching basis. Very expensive mistakes can be avoided by using our services.
This is a service line in which we assist, keep you on track, or get you back on track. We provide whatever amount of “As Needed” project assistance that might be necessary for the Planning, Design, Buildout, and Implementation of your Profitable MRI Imaging Center.
The timeline of your project and all of its day-to-day implementation are in your hands, but we are available to answer questions and provide specialized and experienced guidance that can be truly invaluable, even to an experienced architectural or construction team.
Schedule a complimentary call to our group through our Calendly link, and we can discuss this service line to your satisfaction and understand your possible project needs!
If you wish to engage our group for a Coaching, As Needed Project Assistance Module,
Schedule a call to our group through our Calendly link for a 90-minute hands-on teleconference meeting.
#4 Coaching, As Needed MRI Project Assistance
We communicate with you before our teleconference session to learn of your specific needs and individualize one of the 19 Coaching “As Needed” modules you wish to select for your 90-minute session. In advance, we prepare complete project materials, notes, checklists, and information tailored to your specific project needs.
Once prepared in advance, those materials are sent to you for use and discussion in our scheduled teleconference meeting session.
The cost is $1,500 per 90-minute session and assistance module, paid at the time of scheduling.
Even if a client takes advantage of all 19 modules, the cost is under $30,000.
Additional Project Assistance Module sessions can be scheduled and arranged whenever desired and as your needs suggest, including more hands-on assistance if required at our usual hourly rates.
Do you have a question that is not listed here?
Contact us; we will be happy to answer your questions!