Cardiovascular Business - October/November 2007 - (Page 9) Business Model › SETTING UP A CT ANGIOGRAPHY SERVICE LINE Like an increasing number of cardiology groups across the country, Cardiac Study Center in tacoma, Wash., determined 64-slice Ct was a musthave and started down the purchase path. that was in october 2004. teaching tools to educate referring physicians and developing a peripheral vascular program. the Cardiac Study Center’s business model estimated the Ct scanner optimally would run 10 hours a day, appropriate and current information on exams specific to the patient mix of the practice and leaving behind referral pads and educational material. the group ran newspaper ads for six months, too, and created a detailed website and CMe conferences. An open house and attending health fairs also were part of the plan. In the first 12-months of operation, the Cardiac Study Group has completed 1,388 procedures, including 708 coronary CtAs, 350 peripheral CtAs, 200 calcium scoring exams, 100 chest Cts and 30 electrophysiology mapping exams. Staff: 16 physicians, 5 nurse practitioners › Offices: 2 main, 3 satellite Service area: Pierce County, pop. 755,000 › Patient visits a year: 82,000 Website: Cardiacstudycenter.com Stat: Largest private practice cardiology group north of San Francisco Some 18 months and many, many decisions later, the group’s new service line was up and rolling with its Siemens Medical Solution Somatom Sensation 64-slice Ct scanner. education was the first step to initiating the program, with the group reviewing cardiac Ct systems on the market and literature, and clinical indications and limitations, says vinay Malhotra, MD, FACC, a partner with the group. the team developed a business model and proforma analysis, met with Ct business experts, initiated relationships with referring physicians and radiologists for overreads. visits to a variety of vendor sites and discussions with end-users proved useful in system selection, as well as looking at local vendor relationships and reviewing service records. the center determined they’d need to fortify to absorb the first year revenue. once a system was chosen, price was negotiated based on workstations, PACS, service agreements and thin-client environments. time also was spent identifying and training leaders, recruiting and training their team, developing protocols and questionnaires for technologists, nurses and scheduling clerks, creating Av Close Up › CARDIAC STUDY CENTER INC., TACOMA, WASH. five days a week. Five diagnostic CtAs and six calcium scoring exams would be completed each hour; four Cts would be interpreted. the payor mix in Washington is 50-50 Forecasted Monthly Expenses Medicar e/non-MediEquipment lease $32,000 care. No revenue was Service-maintenance $12,500 included from urology Technologist (with benefits) $ 8,334 exams, virtual colonosNurse (with benefits) $6,667 copy, lung screening and full-body scans. Support staff (with benefits) $8,333 Malhotra says a cardiOther expenses $3,333 ology group can expect Facility $2,750 $1 million to $2 million Total $73,900 in revenue from one Ct unit, assuming $1 million Cost per day $3,600 in annual fixed costs and Breakeven per day all CTA 9 $25 per diagnostic scan Breakeven per day all VASC 8 in direct costs—supBreakeven per day all calcium scoring 24 plies, film, storage and billing. reimbursement Forecasted Monthly Expenses by percentage for contrast media and beta blockers offsets Service/maintenance 17% expenses, while calcium scoring revenue ($199 Technologist (with benefits) 11% per exam) pays for the Support staff (with benefits) 11% Equipment marketing budget and lease/rental Nurse (with benefits) 9% radiologist over-reads. 43% Marketing has been a Other 5% key to success, namely Facility 4% via visits to referring physician offices with CardiovascularBusiness.com Cardiovascular Business 9 http://www.Cardiacstudycenter.com http://www.CardiovascularBusiness.com
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