From Backlogs to Growth: The Financial Case for Investing and Upgrading to the Latest MRI Technology

Financial Pressures Impacting MRI Departments

Healthcare facilities and MRI departments are under increasing financial strain, navigating rising costs, stagnant reimbursements, and growing patient demand. Holding onto older MRI scanners might seem like a cost-saving strategy, but it often leads to greater financial and operational challenges—from reduced efficiency to lost revenue opportunities.

The Current MR Financial Picture

MRI departments face several key challenges that amplify financial pressures:

Staffing Shortages and Costs

Staffing shortages and increased wages are straining budgets. In 2023, there were only 555 MRI students enrolled in American Registry of Radiologic Technologists (ARRT) recognized MRI programs, which is a decrease of 23% from 2022.^[1] This shortage leads to increased labor costs through competitive pay and traveling or contract hires. From 2019 to 2022, contract labor costs for hospitals increased by 258%. ^[2]

Meeting Growing Demand with Limited Resources

An aging population and rising chronic disease prevalence are increasing demand for MR imaging. This year, 71% of MRI sites anticipated higher procedure volume compared to last year, however, fixed resources and aging technology can limit the ability to handle growing volumes efficiently.³

Reimbursement and Revenue Challenges

The 2023 MR Market Outlook Report highlights that 53% of MRI professionals expect reimbursement per patient to stay flat compared to 2022, with only 11% anticipating decreases.³ While optimism about overall revenue is rising, reimbursement cuts from government programs and private insurers persist, pressuring departments to maintain profitability with stagnant or declining payments.³

Limited Budgets for Technology Investments

For healthcare facilities with competing priorities that are facing capital budget constraints, the significant financial investment required for MRI systems can make it challenging to secure investment in new technology. A lack of investment risks leaving some facilities behind as the industry shifts toward modernization.

Facilities Are Deciding to Keep Their Equipment Longer

Tight budgets often lead facilities to stretch the lifespan of their MRI scanners. In 2023, the average age of an MRI scanner at the time of replacement was 15.2 years.³ But older equipment can come with hidden costs like:

• Operational Inefficiencies: Older scanner technology can take longer to complete exams, slowing patient throughput and creating backlogs.
• Outdated Capabilities: Aging systems often lack the advanced features of modern scanners, such as AI-driven imaging and faster scan times, impacting image quality and physician confidence.
• Higher Operational Costs: As scanners age, operational costs rise compared to new equipment. 
  
  

The Financial Risks of Not Upgrading Aging MRI Scanners

Delaying upgrades can lead to cascading effects on revenue and competitiveness:

• Lost Physician Referrals: To improve confidence, physicians may choose facilities with advanced imaging capabilites for their patient referals.
• Missed Revenue Opportunities: Without modern technology, departments may be limiting their growth potential and ability to offer advanced imaging services, such as cardiac exams.
• Patient Backlogs and Dissatisfaction: Older scanners can be less efficient, leading to scheduling delays that frustrate patients and cause them to seek care elsewhere.
• Reduced Competitiveness: Modern systems that have wider bores, offer faster scan times, and include noise reduction technology help to improve the patient experience and can help facilities stand out in a crowded market.

The Case for Encouraging Upgrades vs. Holding On

Investing in upgrading MRI technology may feel daunting, but it offers an efficient way to modernize without replacing your entire system. Here’s how Signa™ Continuum’s upgradeable design can help:

• See More Patients, Boost Revenue: Reduce scan times by up to 50% with AIR™ Recon DL, our pioneering deep-learning-based reconstruction algorithm. Faster scan times help improve workflow and increase patient throughput, which can help to offset flat reimbursement rates and keep revenue flowing.
• Unlock Advanced Imaging and New Opportunities: Upgrading means tapping advanced AI imaging technology. With advanced technology on your side, you can widen your clinical service to more patients and improve confidence from referrals.
• Reduce costs and downtime: Upgrading your system while keeping your existing magnet minimizes downtime and associated costs when compared to a traditional replacement*^[JD1]
• Create a Better Experience for Your Patients: Innovative lightweight and flexible coil technology and wider bores make for a more comfortable patient experience, that can set your facility apart in today’s competitive healthcare market.

Conclusion: Modernization Can Lead You to Financial Freedom

As financial challenges mount, holding onto outdated MRI scanners is no longer a sustainable solution. Upgrading your system existing GE HealthCare MRI system allows MRI departments to:

• Improve operational efficiency and patient throughput
• Expand service capabilities to capture new revenue opportunities
• Enhance patient satisfaction and competitiveness

Facilities that proactively invest in upgrades will be better equipped to navigate financial pressures, attract referrals, and deliver high-quality care. Waiting to modernize risks falling behind competitors and missing out on the benefits of more efficient, patient-centered technology.
 
The Signa™ Continuum offers seamless upgrades to bring your scanner to the forefront of MRI technology. It’s the smart way to stay competitive and expand your services—without the need or cost of replacing your entire scanner.

Sources

Footnotes

1. The American Registry of Radiologic Technologists (2023). Annual Exam Report – 2023. ARRT. https://www.asrt.org/docs/default-source/research/enrollment-snapshot/enrollment-snapshot-2023.pdf?sfvrsn=116b77d3_4#:~:text=This%20produces%20an%20overall%20estimate,of%201.2%20students%20per%20program. 
2. https://www.healthcarefinancenews.com/news/hospitals-labor-costs-increased-258-over-last-three-years
3. IMV, 2023 MR Market Outlook Report. 1
4. European Society of Radiology (ESR). Renewal of radiological equipment. Insights Imaging. 2014 Oct;5(5):543-6. doi: 10.1007/s13244-014-0345-1. Epub 2014 Sep 18. PMID: 25230589; PMCID: PMC4195838.
    
   *Increase bore size from 60cm to 70cm with a SIGNA EVO upgrade.