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To survive the DRA focus on the business of medical imaging.
Tom Emmerson, RT (R)
During the last two years much speculation has lingered
around the impact of the Deficit Reduction Act
(DRA). Recent articles in Aunt Minnie and other national
industry news syndications are reporting that the growth
of start-up outpatient imaging centers has been reduced
significantly, and the profits for existing imaging
centers has been cut dramatically.
The DRA created legislation to reduce outpatient imaging reimbursement
for Medicare patients by capping the technical component for outpatient
imaging to the lesser amount of either the Hospital Outpatient Prospective
Payment System (HOPPS) or the Medicare Part B Physician Fee Schedule
(MPFS). The Centers for Medicare and Medicaid Services (CMS) have also
implemented technical portion reductions to outpatient diagnostic imaging
for MR, CT, and ultrasound exams (on contiguous body parts performed
in the same session).
With the news that many imaging centers are facing extremely difficult
times, we asked Ron Griffiths, Vice President of Operations for PresGar
Companies, to share information with other MedAssets members on how
imaging centers can survive in today’s market. Mr. Griffiths
has over 30 years experience in the imaging business.
Here’s what Mr. Griffiths shared with us:
When you think about your ‘Medical Imaging Business’ what
you focus on probably depends on what you do in that business. The broad
range of elements required to operate a profitable imaging business requires
many unique points of focus. These elements include technical, professional,
revenue relocation, financial, marketing, customer service, supply chain,
contract management, human resources, compliance and more. All are vital
components of your business success and financial health. Ignore any
of them and the business suffers. The test we all face in these economically
challenging times is to streamline and improve each of these facets of
our operations as cost-effectively as possible. Those who are successful
will remain competitive and profitable despite the difficult times. However,
in the post DRA world, ‘business as usual’ could mean ‘business
in decline’. "
One of the success stories is PresGar Companies’ PG Management
Solutions. This organization, has felt the impact of the DRA firsthand
and are no strangers to the ever changing market conditions in our industry.
We’re not simply a management service company but actual stakeholders
in the medical imaging business. Together, with our affiliates, we have
developed and managed over 80 successful outpatient imaging centers over
the last 15 years, so when we speak, we speak from experience. As leaders
in the field, PG Management Solutions has assembled together some of
the most talented minds in the business. The senior management
team has over 50 years of experience owning and operating profitable
imaging centers. Our advantage is obvious. Both our support systems
and operational philosophies have been tried and tested in the real
world. At PG Management Solutions we practice what we preach. "
The model is simple. We put our years of experience and talents
to work for your business. By leveraging our tested support system and
infrastructure it is possible to improve both operational efficiency
and fiscal performance without the capital outlay required to go it alone.
Thanks to all of our strategic alliances with industry leaders in the
fields of RIS, PACS, Digital Dictation and many others, they provide
and support customizable solutions across a wide range of customer needs
ranging from project development, to marketing, and day-to-day facility
management. It was actually PresGar Companies’ success in
providing these solutions in our own business that led to the formation
of PG Management Solutions. Our same team of top performers that currently
manage 39 outpatient facilities in eight states, are now sharing that
knowledge and expertise with others of us in the medical imaging business,” said
Griffiths.
In speaking with such a uniquely qualified and seasoned management team
we asked them for some DRA survival strategies that we could share with
other MedAssets members.
Here is a PG Management team top 10 list:
• First and Foremost provide a quality product.
Without quality and consistent services all the strategies
in the world won’t help you.
• It’s a people business. The stronger
your relationships are with your customers and employees
the more successfully you can weather the storms and implement necessary
changes.
• The healthcare consumer is more sophisticated and
knowledgeable than they have been in the past. Create
environments in your facilities that reassure customers of your professionalism
and competence. Healthcare consumerism and consumer directed
health plans enrollment is growing fast.
• Every medical market is unique. The days
of “cookie
cutter” solutions to our issues are in the past. Know
your competition, your market and its dynamics.
• Give your business a regular “tune-up”.
Don’t wait for a crisis. We wouldn’t think of not servicing
our vehicles but often in business as long as the status quo is maintained
we cease diligence and improvements and try to coast.
• Volume is king but keep an eye on the payor mix-
Do only as much as you can do an exceptional job on but
Work Smart. Constant diligence with your contracting and managed
care is critical.
• Constantly add value to your services. The
little things really do matter. Especially now. What sets
you apart from the competition? Think outside the box. The use of
technology may set you apart from your competition.
• Utilize your “people power”.
None of us hire only our employee’s hands and feet. We hire
their passions and talents. Hire right. Listen to their suggestions
and respond to their needs. Good people will feel a sense
of ownership in your business.
• Control Costs. Know where your money is spent
in every area of your business and constantly evaluate
both its necessity and the value returned.
• Don’t be afraid of change. The successful
businesses of the 21st Century will embrace change and
continuously evolve to better meet the needs of their customers and
the realities of the marketplace.
PG Management solutions is in business to share their expertise with
other imaging centers that are looking for successful solutions to the
critical issues of our rapidly changing marketplace. For more information
or to speak to a PG Management Representative, please call 1 (866) 372-6468.
PG Management Solutions offers solutions in the following areas:
• Billing/Collections/RIS Systems
• PACS
• Accounting Services
• Clinical Support & Night Hawks
• Compliance
• Debt Restructuring
• Digital Dictation Services
• Dictation Systems
• Equipment Funding
• Equipment Purchasing
• Equipment Maintenance & Service
• Facility Acquisition
• Facility Management
• Group Purchasing
• Human Resources
• IT/IS Services
• Insurance Contracting & Credentialing
• Joint Venture Structure
• Marketing & Advertising
• Project Development
• Selection & Training of Personnel
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