Outsourcing radiology services: What you need to know

What is outsourcing radiology services?

Outsourcing radiology services means sending scan reading and reporting to an outside team, a practice also known as teleradiology.

• It gives hospitals fast access to licensed radiologists.
• As a result, patients often get quicker results.
• Still, the practice brings both clear benefits and real risks.

Outsourcing radiology services is now common across the healthcare industry. In fact, outsourcing is nothing new in healthcare. For example, the North America healthcare business process outsourcing (BPO) market is projected to keep growing strongly, reaching USD 173.67 billion by 2027.

Most outsourced healthcare work is not clinical, such as claims processing. However, clinical outsourcing is also on the rise. In short, it means giving clinical services to third-party firms.

Teleradiology grew out of this shift. Still, the practice has its share of critics. So read on to learn how it works, plus its benefits and dangers.

What are radiology services?

Radiology is a secondary healthcare service that covers many clinical steps. For example, it includes these imaging types:

• General radiology (standard X-ray technology)
• Magnetic resonance imaging (MRI)
• Positron emission tomography (PET)
• Computerized axial tomography (CAT)
• Dual-energy X-ray absorptiometry (DEXA)

In short, this service is about diagnostic imaging. So specialists use body scans to diagnose and treat patients. In addition, there are three types: diagnostic, interventional, and therapeutic.

Diagnostic radiology

Diagnostic radiology is the best-known radiological service. So it is also the process used when outsourcing radiology services. For example, health teams use it to:

• Look at the structures inside a patient’s body
• Assess how well a patient responds to treatment
• Screen patients for illness, such as cancer or heart disease

MRIs, PETs, and CATs are all examples of diagnostic radiology.

Interventional radiology

Interventional radiology refers to image-guided surgical procedures.^[1] In these surgeries, radiologists use imaging tools to guide each step. For example, they may use MRI, fluoroscopy, and ultrasound.

Here are some examples of interventional radiology:

• Catheter placements
• Feeding tube placements
• Needle biopsies of organs
• Embolization

Therapeutic radiology

Therapeutic radiology is also called radiation oncology. In short, it treats cancer and other diseases with radiation.

How outsourcing radiology services work

Many private practices now outsource radiology work to BPO firms. In fact, some hand over an entire radiology department. So teleradiology has become a common choice.

The demand for faster interpretation of diagnostic images^[2] is one big reason. Meanwhile, cost and staffing gaps also push this shift.

There are several ways to set up outsourcing radiology services. As a result, each model fits a different budget and goal. Below are the main arrangements.

Management contract

Under this model, radiologists hold set management duties and authority. Still, the hospital keeps ownership and staff. So they earn a management fee, apart from any performance targets.

Leased department

In the leased department model, radiologists provide the full technical service. For example, they handle staff, rent, supplies, billing, and marketing. However, the department must still run within the hospital’s licensure and regulatory requirements.

Joint venture

Providers and radiologists can also form a joint venture. In this model, they draw up an agreement to own and run part or all of the technical radiology services together.

Sale of department

In this model, radiologists buy the technical radiology assets from the provider. Then the provider pays for their services on a contract basis.

Outsourcing radiology services: benefits and risks

Outsourcing radiology services opens many doors for healthcare. However, these gains carry some risk too.

First, patient safety is the top concern. For example, critics point to past cases in the US where outsourced reads ended badly.

Loss of clinical quality is another worry. A healthcare service quality researcher from Texas A&M University warns that “…outsourcing may not provide the anticipated financial benefits … especially when discounted pricing is used to secure an outsourcing contract with the intention to raise prices later.”

Still, teleradiology is here to stay. In fact, it adds more than just cost savings. As a result, it also adds real value for patients. Below are some of those gains.

Faster diagnostics

With today’s tools, teleradiology allows near-instant viewing of scan results. As a result, clinicians reach a diagnosis faster. So patients get better care sooner.

Improved consultation

Teleradiology helps radiologists and physicians work together on the best plan. For example, it is easier to get a fast second opinion from a remote subspecialist. So small towns gain access they often lack.

No shortage of radiologists

Hospitals can tap radiologists from another city or continent. As a result, they no longer face a shortage of readers. In addition, outsourced radiologists can cover off-shift hours for local staff.

Frequently asked questions about outsourcing radiology services

What is teleradiology?

Teleradiology is the remote reading of medical scans. In short, a radiologist reviews images from another location. So it is the core of outsourcing radiology services.

Why do hospitals outsource radiology services?

Hospitals outsource to get faster reads and fill staffing gaps. In addition, it can lower costs. As a result, patients often receive quicker results.

Is outsourcing radiology services safe?

It can be safe with the right partner and oversight. Still, critics point to quality and safety risks. So clear standards and checks matter a lot.

What are the main radiology outsourcing models?

There are four common models. For example, they include the management contract, leased department, joint venture, and sale of department. Each one fits a different budget and goal.

Key takeaways

• Outsourcing radiology services, or teleradiology, sends scan reading to an outside team.
• First, it speeds up diagnosis and eases radiologist shortages.
• In addition, it supports faster second opinions from subspecialists.
• Still, quality and patient safety remain key risks to manage.
• So clear standards and strong oversight make the model work.

References

[1] image-guided surgical procedures. Jud, L. et al. (2020). “Applicability of augmented reality in orthopedic surgery: a systematic review.” BMC Musculoskeletal Disorders 21, 103. https://doi.org/10.1186/s12891-020-3110-2

[2] faster interpretation of diagnostic images. Mintz, Y. and Brodie, R. (2019). “Introduction to artificial intelligence in medicine.” Minimally Invasive Therapy & Allied Technologies, 28(2), pp. 73-81. https://doi.org/10.1080/13645706.2019.1575882