This case study, published on the IMAGING ECONOMICS website, is a collaboration of efforts by Paul Monge, ExactCost's VP Clinical Specialists, and Kevin Gregory, Director of Radiology Services at Mercy Hospital, Miami.

---

The Imaging Economics Web Site is dedicated to helping radiologists, radiology administrators, and health care executives meet the increasingly complex economic challenges of providing quality imaging in both the inpatient and outpatient settings.

---

CASE STUDY:  RADIOLOGY ROI

Using activity-based methods to justify capital equipment.

The Challenge: 
To determine the feasibility of acquiring a new 64-slice CT scanner for the Emergency Department (ED).

The Solution:
Mercy Hospital selected the ExactCost system because most of the activities performed in radiology were predefined in the application and required minimal customization, which reduced implementation time. In this case study, the ExactCost solution was used to evaluate: (a) historical and projected volumes (b) potential impact on volume with an additional CT scanner (c) reimbursement rates, payor mix and actual payments in both the inpatient and ED (d) current and potential capacity (e) impact on maintenance costs and downtime for the existing CT scanner and (f) current and future staffing requirements.

The Results:
"The results of our analysis concluded that a new ED CT scanner would produce an internal rate of return of 103% and payback over a period of 17.3 months. Using the activity-based methodology provided us with a very detailed analysis centered on activities at a procedural level. Having an integrated activity-based system has provided Mercy with an ongoing level of detail that enhances our daily operation, including budget preparation, capital equipment expenditures, procedural cost containment, and enhanced services." 


Click here to view the complete Case Study as published on the IMAGING ECONOMICS website.