Economics of Ultrasound

Let’s assume your cost is $35k and you finance with a monthly payment of $700. You evaluate your uses at approximately 15 uses per week and would get an average of $200 per use.
Gross Revenue = $12,000/mo or $144,000 annually
Purchase Cost = $700/mo Net Revenue = $11,300/mo or $135,600 annually
Breakeven = approx. 3 injections/mo
The economics of ultrasound are pretty fantastic, now let’s get to the real important items to make sure the numbers you sketch out on paper, actually end up in your bank account. How and what you purchase will directly impact how successful ultrasound will be in your practice. So let’s get down to the business of purchasing ultrasound.
Common Pitfalls

Selecting the system Now that we have that out of the way you are positioned to start your shopping off on the right foot. If you’ve never used ultrasound before in a chronic pain setting then there are 2 that are critical in order for you to implement it successfully: Diagnostic quality system Progressive on-site training from experts CME off-site courses for on-going training Choosing a diagnostic quality system can be difficult because there is no “spec” you can look for or evaluate in a system to decipher how good it is. You simply need to see the system and the quality for yourself. But if you can’t tell a bad image from a good, then stick with well known companies and don’t try to make that decision. In order to do this go with the big 3. There are many other companies, but in general if you are new and you want to make the least risky purchase without surprises after the sale or make a mistake on buying something that won’t work, then it’s safer to stay within the box and not try to be the expert and go with an unknown. The 3 main companies that are involved in this space are: Advisor Medical GE Sonosite
Training...you do intend on actually using it right?
Pay attention closely to this section, because not all training is created equal. The best training for you to really learn ultrasound fast, is on real patients with an expert at your side helping you learn how to angle, position, needle entry point, and a whole host of other key’s in making ultrasound simple. And then repeating the next day on your own, and the next day after that until it becomes as second nature as fluoro guided procedures. This is the fast-track to learning quickly. Then after 30-45 days, go to a course where you can learn on live models and/or cadaver’s to further your skills from faculty that have been doing it for years and can teach you more difficult to do procedures. Since the on-site training is the first and most important step, you need to make sure the company is willing and capable of the following: Teach you how to run the system (patient name, save image, etc) Teach you how to perform ultrasound-guided procedures! Buyer beware: Most companies provide ‘on-site’ training by an ultrasound tech. Ultrasound tech’s come from traditional ultrasound environment’s which include scanning breast, vascular, abdominal, cardiac and other non-MSK or chronic pain related areas. What this means is that they can teach you how to run the ultrasound system but cannot show you anything about procedural ultrasound in chronic pain simply because they, like you, don’t know the sono-anatomy of the surrounding structures, the target, or where to best insert the needle. In addition, many companies are run by lawyers and make it a policy to “not show the Dr how to perform procedures, but simply run and optimize the system”. This means that learning procedural ultrasound will be on your shoulders. Now all of a sudden you are stuck, you are not comfortable using the system you bought on patients and it sits there as a very expensive dust collector. In addition, that ROI you performed while deciding to purchase becomes irrelevant. The only way to get the numbers off of the paper and into your bank account is to be using it. Be absolutely clear on this point and get it in writing from the sales person if possible. Now that you have your on-site honed-in and have a clear path laid out for how you will get started, take it to the next step. What CME courses will you be going to in the future to ensure you are adding to your expertise as well as using the ultrasound system to it’s fullest potential in your practice? I recommend AAPMU (American Association of Pain Management in Ultrasound, www.aapmu.org), it runs 3 levels of courses depending on experience, and in 2014 will be offering the first and only Procedural Ultrasound Certification. It can be possible to negotiate with your vendor to have them reimburse you for tuition for those courses.
Price Range & Financing
I get a lot of questions on the price range to try to stay in, the answer is simple and shared by most other experts, it’s $30-60k. If you are just doing basic ultrasound injections, then stick with a premium portable unit with a target of around $30-40k. If you intend on utilizing it in spine and/or heavy diagnostic uses, then you should consider looking for more horse-power that a cart based unit gives you. This also means you may be having to spend more on the hi-end of $50-60k. Why not finance? Financing is a great option to help with cash flow, consider the following when having your sales person putting the quote together: 3-9 month deferral on payments No pre-payment penalty 60 month Dollar Buyout Loan (qualifies for IRS Section 179 tax deduction) This allows you time to get reimbursements in before the unit starts costing you money. Then if you have made enough in a couple months you can just payoff the loan without penalties and own it outright. What you structured is a way to have the ultrasound completely pay itself off without impacting your cash flow at all.
About Paul Kapenga

For questions or comments please contact Paul Kapenga directly at paulk@advisormedical.com or call 866.263.4219 x700.