Cardiovascular Business - November/December 2008 - (Page 27)

› Lower Price, Larger Volumes, Increased Profits Many sites have found that by offering a lower price for a coronary calcium score (CCS) test, they can actually increase revenue by attracting more customers. $99 CCS price point $99 - $7 (cost) = $92 profit/study x 18 CCS/day = $1,656/day ■ $199 CCS price point $199 - $7 (cost) = $192 profit/study x 4 CCS/day = $768/day ■ Table 2: Downstream Revenue Increases $250– $247 $200– $150– $100– $50– 0– Direct to Consumer Clinical Model $124 only marginal participation. After lowering our CCS price to $149, and eventually to $99, we found that our volumes increased linearly. Numerous other sites have reported that CCS pricing below the $100 threshold has positively impacted study volumes. The marginal cost of conducting a CCS test is approximately $7 without a radiology overread (approximately $32 with overread services). Therefore, sites can proﬁtably offer the CCS test at a lower cost while recouping revenue via increased study volumes (see box, above). The additional beneﬁt of lowering CCS pricing is that a larger percentage of the local population will have access to this test, positively impacting community-wide heart attack prevention efforts. Downstream revenue Six-month data show signiﬁ cantly higher downstream revenue after adopting a clinical model that relies on educating referring physicians about the beneﬁ ts of a coronary calcium score (CCS) test. The transition from a direct-to-consumer advertising model to a clinically-driven CCS program dramatically affected our CCS volumes (see Table 1). A comprehensive educational approach designed to promote buy-in from the primary-care physicians and self-insured employers increased CCS referrals substantially. Additionally, by adopting the clinical model versus the direct-toconsumer advertising approach, we eliminated our robust marketing/advertising budget, thereby increasing our proﬁtability per scan, immediately. Pricing for profit The price point for a CCS test is a critical component of a successful CCS program. There are tremendous variances in the price charged for CCS across the U.S., ranging from $79 to $699. Our own experience was to initially price CCS at $199, which met with The largest economic impact of CCS is not proﬁt generated at the time of testing, but rather from downstream revenue. We conducted a six-month analysis looking at both models in our practice. We included all CAD-related CPT (current procedural terminology) revenue resulting from anyone entering our practice via CCS. Our CPT-driven downstream revenue was signiﬁcantly higher when using our education-based clinical model to increase CCS referrals (see Table 2). This is likely attributable to the fact that under the direct-to-consumer advertising model many patients would not follow-up with their primary-care physician regarding results. Under the clinical model, in which the patient is referred via primary care, patient follow-ups were commonplace, thereby enhancing patient medical management. CCS is an effective way to enhance CT departmental revenue while positively impacting the community via an early CAD detection and heart attack prevention program. We found our education-based clinical model increased CCS referrals and increased primary-care physician understanding and participation. CardiovascularBusiness.com Cardiovascular Business 27 http://www.CardiovascularBusiness.com

Table of Contents Feed for the Digital Edition of Cardiovascular Business - November/December 2008

Cardiovascular Business - November/December 2008 Contents First Word Cover Story: Practice Management Software Moves Beyond Bean Counting The Death of CME as We Know It? Clinical Study Digets: Triple-Antiplatelet Therapy; Ex-Vioxx Users Beware Shockwaves Subside from the FDA's Echo Contract Warning Burning Question: Does Laser Heart Therapy for Angina Really Work? Advanced Visualization Adds New Practive Dimension Coronary Calcium Scoring Program Reaps Dividends Interventionalists Get Pumped Up About Mechanical Chest Compression Trials Force Physicians to Re-Examine Oral Anti-Diabetic Drug Protocols News & Views Calendar Reader Resources The ACC Corner

Cardiovascular Business - November/December 2008

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