Business of Radiology 101
Capital Expenditures: Components
Radiology Capital Expenditures have a variety of components, some of which are difficult to budget. The most basic expense is the down payment cost for the device. Most Capital Purchases are not made as a single transaction. Instead, a down payment is made and the remaining value is paid over a predetermined time period. A common scenario is a multi-year lease resulting in full ownership of the equipment at the end. A lease may also cover only part of the remaining equipment value, with the option of acquiring the device at the end of the period for a lump sum. Lease-to-Own contracts often result in a lower interest rate, but both case factor interest payments into the price of the purchase.
Departmental throughput is generally dependent on the type and quality of equipment in use. Throughput is measured in study volumes and RVUs accrued. Higher study volumes can increase labor and supply costs, necessitate more frequent maintenance and has the potential to negatively impact the profitability of equipment. Service contracts detail the amount of vendor support for maintenance and servicing at an agreed upon price. Vendors typically provide services during specified hours and days within a predetermined timeframe.