Critical Access Hospitals plan to continue capital investments in medical imaging to serve rural populations, according to a survey by Regents Health Resources, Inc.

A significant number of U.S. hospitals - nearly 1,300 - fall under the CMS category of Critical Access Hospitals (CAHs). These small, usually rural hospitals of less than 25 beds play a vital role in access to health care for millions of Americans. A recently released survey of these important facilities, conducted by Regents Health Resources, Inc., Brentwood, TN, reveals challenges as well as promising prospects for imaging equipment investment in the near future.

"What this survey revealed was a desire by CAHs to continue to invest in their services providing quality health care access to rural America," says Brian Baker, Senior Vice President of Regents. "The challenge for them is how to accomplish this goal with very limited capital."
Not surprisingly, the survey shows that the single biggest issue keeping small hospital executives up at night is overall financial viability with 67% of respondents reporting annual profits of less than $1 million. However, over 85% of respondents report imaging as a profit center within the hospital where most are planning to upgrade or augment at least one modality within the next three years (see chart). For example, more than one-third of CAHs plan on upgrading or adding CT services with just over 80% providing those services today.

"Critical Access Hospitals are planning on significant investments in their imaging services for the near future," Baker confirms.

Regents' survey, conducted in the spring of 2008, covered six areas: Overview & Financial, Market, Operations, Radiology, Radiologists & Physicians, and Staffing.

In other findings, over 63 percent of CAHs have plans to implement new or additional technology support systems in the next 12 months. Those systems include PACS, RIS, HIS, and EMR.

Implications for Independent Service Providers

This essential subset of health care providers serving rural patient populations has money concerns perhaps even greater than hospitals in other settings. "This challenge, we believe, can be addressed by many of the quality aftermarket equipment suppliers in the market today," Baker notes. He recommends that ISOs focus on value-added support services as well as their traditional forte of technical expertise.

"Today's facilities are using technology and new processes to uncover new ways to be more effective with fewer resources," Baker says. "Just delivering quality refurbished equipment that represents a great value is the baseline." To differentiate their business in such a competitive marketplace, ISOs must also provide consulting in operational assessments to uncover simple, low cost solutions to day-to-day issues faced in many imaging operations.

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