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Demand for endoscopic video systems is expected to grow as new techniques enable even more procedures to be performed in a minimally invasive manner, making the question for today’s hospital not if to purchase a system but how many to purchase.
The market is diverse, sub-divided into gastrointestinal (GI) and surgical markets with a smaller market emerging for endoscopic ultrasound. The GI market has become one of the largest endoscopy segments as a result of increased awareness and screening for colorectal cancer and other GI-related conditions. While surgical scopes have a separate camera head and adapter, allowing them to be used across vendors, GI scopes have a camera head built in, which ties it to a single vendor’s scope. Service contracts are not typically cost effective for electronic equipment, but because video scopes generally have a higher failure rate, service contracts are recommended for them.
On the chart below, lower prices are for the smaller standard definition video systems often used in doctor’s offices while the higher priced systems are for high-definition systems used in operating rooms. To be competitive in today’s environment, many hospitals are offering systems in high definition. Other improvements in this area include digital image capture and 3D visualization. Cost reductions can be found in considering demo units, which vendors typically will provide with a normal one year warranty. Another option for cost savings is to consider previous generation technology depending on the primary surgical application. Ultimately, the right system will depend on size, budget and types of procedures.
Reimbursement rates are based on the type of procedure, but overall have been steadily increasing, but this is tempered by cost of scopes increasing as well at a rate of 2% to 3%. For example reimbursement for a screening colonoscopy (APC 143) in 2011 was $569. This went up to $577 in 2012 and $611 in 2013. Likewise, reimbursement for a Level 1 Laparoscopy (APC 130) surgical procedure was $2,662 in 2011, $2,713 in 2012, and $2,730 in 2013.
Below are price ranges seen for GI and surgical systems as well as full-service contracts for both of these systems.
Source: MD Buyline
Publication Date: Monday, September 23, 2013
Tom Myers, chief strategy officer, The SSI Group, discusses the shifting payment environment and how it affects providers' patient access and claims management processes.
Jeff Chester, senior vice president and chief revenue officer at Availity, shares his thoughts on "Revenue Cycle 2.0" and how to best meet its challenges.
Mitch Morris, vice chair and global leader, healthcare, Deloitte, and Michael O'Rourke, senior vice president and chief information officer, Catholic Health Initiatives (CHI), share perspectives on the need for transformational IT in health care today.
Brian Kueppers, founder and CEO, Apex, discusses the importance of a robust patient payment strategy in boosting organization revenue and enhancing patient satisfaction.
Brian Grazzini, CFO, HealthPort, describes the importance of efficient and compliant information exchange and audit management in helping HIM staff spend less time on paperwork and more on mission-critical projects.
Cindy Matthews, executive vice president, Community Hospital Corporation, discusses how rural and community hospitals can use collaborative partnering to position for success through tough market conditions.
Rick Heise, senior vice president, revenue cycle, at Cerner Corporation, discusses the importance of integrating clinical and financial data to excel in health care’s changing payment environment.
Russ Graney, founder and CEO for Aidin, and John Laursen, head of business development for Aidin, share insights on how to improve care transitions between acute and post-acute care settings and incentivize high-quality patient outcomes.
Scott Elston, strategic accounts manager, GE Healthcare Services, describes how substantial cost reduction in health care requires rethinking business strategy and asset use.
Robert Williams, MD, director, Deloitte Consulting LLP, and Arielle Freiberger, product strategist, ConvergeHEALTH by Deloitte, explain how sophisticated retrospective, real-time, and predictive data analytics can inform decision making to reduce costs and improve care.
Stuart Hanson, director of business development (healthcare solutions) at Citi Retail Services, discusses how improving the payment experience can benefit consumers and healthcare providers.
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