This report originally appeared in the September 2009 issue of DOTmed Business News
Sorting through mail upon returning from vacation, I found a letter from a friend in real estate - these are usually mass mailings. Still, I admired her willingness to persevere in a difficult market. Imagine my surprise upon opening her letter to discover it was not about buying or selling my property. It was about expanding her business in a down market. She offered an open house for those interested in a career in real estate with her agency. In a market that is at its lowest point in almost 40 years she's bucking the trend and expanding - attacking the market! Are you proceeding in the same way in your imaging business?
When the economy was good, imaging facilities were adding equipment and approaching higher risk markets with little analysis or future growth projections. They just knew it would work if they worked hard. In a down economy and a fear of business expansion, I find the same people with the same opportunity level hesitant to move forward. When I ask why the uncertainty, they ask questions in turn, such as: "What about 'Obama Care?'" "What about reimbursement?" "What about changes in the Stark Law?"
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These are unresolved issues and mostly ones over which we have no control. I say, if you can't control the outcomes, move on and focus on something you can control. Many imaging centers need to upgrade one or more of their devices. But with the very same market information they had when the economy was better, today they're afraid to take advantage of opportunities to increase their clinical capabilities, referrals and profit.
If you've conducted a careful analysis and it's obvious you need to upgrade or add imaging capability and the clinical and financial payback projections are acceptable, go for it. But, let your new cautious attitude lead you. Make a specification for what you need. Don't just seek out the latest, greatest and usually most costly. Consider new and pre-owned equipment. More than half the time, I find my clients get more performance than they've specified with pre-owned and frequently at less than half the price of new equipment. Reimbursement isn't any higher when the equipment is new or costs more.
If buying used equipment, even if it meets or exceeds your needs frightens you, then hire someone who can help you through the process. The few dollars spent to learn about the evaluation of buyer need and seller capability may save you as much as 80% on your purchase when compared to new.
There will always be diagnostic imaging demand. The question is, can your imaging business meet the demand clinically and profitably? Pre-owned equipment can be a major part of the solution.
Wayne Webster is a consultant in Medical Imaging Business Development. You can send your comments or questions to W.Webster@Proactics.net.
