William W. Mayo-Smith MD, Presenter: Research support, General Electric Company Research support, Bracco Group

Wayne R. Arruda, Abstract Co-Author: Nothing to Disclose

Damian E. Dupuy MD, Abstract Co-Author: Consultant, Abla-Tx Inc Consultant, Veran Medical Technologies, Inc Grant, Endocare, Inc Grant, Veran Medical Technologies, Inc Speakers Bureau, Tyco Healthcare (Valley Lab)

Elizabeth Lazarus MD, Abstract Co-Author: Nothing to Disclose

John Joseph Cronan MD, Abstract Co-Author: Nothing to Disclose

To determine the profitability of outpatient ultrasound services by analyzing expenses and reimbursement for 22,179 ultrasounds performed by one practice in 2005.

This study is compliant with the health insurance portability and accountability act (HIPAA). Cost Accounting data for 22,179 ultrasounds was collected from four outpatient offices for the 2005 calendar year. Costs for provision of the ultrasound service included direct on-site costs and off-site overhead costs. Expenses were also analyzed by dividing costs into fixed and variable components. True cost for performing each exam was calculated by summing the aggregate fixed and variable costs and dividing this number by the total exam volume. Interpretation costs were also calculated. The aggregate technical and professional costs were compared with the actual 2005 global Medicare reimbursement for each exam type in our state.

The average on-site cost (variable and fixed) was $63.87 per exam. The average overhead cost was $32.31 per exam for a total cost of $96.18 per exam before physician expenses were added. Physician interpretation costs averaged $12.99 per exam. The average Medicare global reimbursement for the exams performed in 2005 was $110.30 per procedure. Thus the average profit per exam was $ 1.13.

Performing ultrasound in an outpatient setting in our state results in an average profit of $1.13 per exam.

Determining profitability of ultrasound is important for allocation of imaging resources.

Mayo-Smith, W, Arruda, W, Dupuy, D, Lazarus, E, Cronan, J, What Is the Profitability of Outpatient Ultrasound? Analysis of Expenses and Revenues from 22,179 Exams Performed by One Outpatient Practice.  Radiological Society of North America 2007 Scientific Assembly and Annual Meeting, November 25 - November 30, 2007 ,Chicago IL. http://archive.rsna.org/2007/5009031.html