by Richard B. Elsberry
The conventional wisdom is that mobile screening mammography is
a money pit for hospitals and makes sense only as a means of
showing a willingness to reach out to the uninsured in the
community.
But not every mobile mammography provider is awash in a sea of
red ink. Imaging Associates Inc, a Seattle-based for-profit
established in 1989 by radiologist Ken Heilbrunn, MD, has evolved a
business plan that enables it to more than break even despite the
minimal reimbursements authorized by Medicare and Medicaid for half
of its patients.
Imaging Associates generates 85% of its revenue from mammography
and the balance from other off-site servicesultrasound examinations
(8%), plain radiographic films (5%), and osteoporosis screening
(2%), a service it recently initiated. It serves on a weekly or
monthly basis some 40 remote, low-income, and Native American
clinics throughout Washington, but primarily in the western part of
the state. Only 1% of its volume comes from on-site service to
corporate clients.
Its three portable mammography units, two ultrasound systems,
and a pencil x-ray beam osteoporosis scanner are transported in
full-size vans or minivans and set up in clinic examining rooms,
which it rents. Chief technologist Sharon Haworth, who has been
with the firm almost since its inception, works with four part-time
technologists, a full-time sonographer, three part-time
sonographers, and five office workers who handle billing,
transcription, film processing, and customer coordination.
Last year, Imaging Associates did 7,887 on-site mammograms,
which were primarily read by Heilbrunn. In addition, assisted by
three locum tenens radiologists, Heilbrunn read and billed for
another 6,000-plus mammograms done at other facilities and sent to
Imaging Associates by courier or UPS.
Only one half of the mammograms done by Imaging Associates are
covered by commercial health insurance. The other half are
reimbursed under Medicare or Medicaid, or qualify for the National
Breast and Cervical Cancer Early Detection Program or a grant by
the Susan G. Komen Breast Cancer Foundation under its outreach
program. Patients who do not qualify for federal or grant programs
are treated free or billed at a reduced rate.
To avoid red ink, Imaging Associates needs to average $75 to $80
per examination. When he started the business Heilbrunn hoped to
provide examinations for $55, but soon had to adjust his sights.
Third-party insurers are now billed a global fee of $120, "but we
usually don't see the full amount," Haworth says. However, the
higher fees paid by commercial insurers help offset the skimpy
technical and professional payments from federal sources.
There are two keys to profitability, and both involve achieving
high volume and high productivity. "One is building a relationship
with the clinic people who are doing your scheduling, so you are
booked tightly," Haworth says. "Our technologists need to see four
patients an hour if we are to break even.
"Some remote and low-income clinics tend to have a high no-show
rate. The sites that we work with know what is normal for their
practice and if they typically have a 50% no-show rate overall,
then they will double-book appointments." Imaging Associates
technologists, who are paid $27-$28/hour portal-to-portal, do not
process the film. "We use our support staff for that," Haworth
notes.
The second key to profitability is optimizing film
interpretation. "We provide an environment for optimal visual
perception and have someone hanging films for the radiologist,"
Haworth says. "Reports are prepared using a computer-assisted
mammography reporting system where all the radiologist has to do is
check boxes; he does not have to dictate every report. When a film
is not routine, we fax the report to the clinic or referring
physician. If a patient is a self-referral without a provider,
Heilbrunn assumes responsibility for getting her referred to a
specialist.
The result of these procedures and Heilbrunn's experiencehis
annual database of more than 150,000 examinations ranks among the
five largest in the country for a single radiologisthas produced a
recall rate of only 3% and a proportion of Stage 0-1 cancers of
80%, he says.
Imaging Associates' administrative and professional efficiencies
allow proportionately lower per case professional compensation.
That, Heilbrunn says, is an essential factor in its financial
viability.