One of Radiology Executive’s primary responsibilities is to monitor and report on the financial health of their organizations. Given that many of imaging facilities and departments are ceasing to perform screening and other non-urgent imaging a Radiology group and Imaging Center cash flows could be seriously eroded. Some are reporting a 30% to 40% loss of volume, or more. Radiology executives should be modeling the near and mid-term impact these volume decreases have on cash flows at least through the end of the year.
Historically, most community-based groups and physician owned imaging centers don’t retain a high level of cash reserves, which means they are exposed to sudden cash flow disruptions. Depending upon how long this COVID-19 related volume loss continues, Radiology groups and Imaging Centers could find themselves in a negative cash flow situation that erodes their cash reserves.
Radiology groups and Imaging Centers need to take proactive steps to 1) understand the size of the potential impact; and 2) takes steps to ensure they have enough cash available to them to continue operations.
I created a Cash Reserves Modeling template and am making it available here free of charge.
Click here to download. Instructions are included.
[A couple of people have asked if I provide consulting services to help them analyze their practice’s exposure. I am certainly willing to help in any way I am able. Click here to send me an email if you would like to discuss how I can help.]
The template allows users to estimate the impact anticipated revenue losses may have on group practices’ and imaging centers’ cash reserves across 5 different Scenarios. Users need to input historical revenues for both screening services and non-screening, historical expenses, and their current cash balance. The model allows users to enter different base loss percentages for Screening services (often 100% initially) and non-screening services (some are reporting up to a 30% to 40% loss in non-screening imaging services). The model uses varying “Recovery Rates” to create 5 different recovery Scenarios. Default recovery rates are provided. The template auto-calculates tables and a line chart based upon the variables entered.
Please keep Dose Registry Support Services in mind if you or your facility are looking for a low-cost, staff-friendly, and Joint Commission compliant dose monitoring solution.