1. QUANTITIVE Analysis Of Imaging Services For Chesapeake Imaging
Analysis Developed And Compiled By Bart Riordan

2. Client
Imaging Facility Located in Annapolis, Owned by Local Radiologist
CT, MRI Center has been in Place for Past 2 years
Radiologist has Built a Considerable Clientele Based on His Expertise in Head, Spine , and 3-D Imaging Interpretation
Many of his Current Referrers Have Practices in His New Geographic Area of Interest.

3. Problem Imaging Center Wants to Increase Revenue
They Feel a Change in Location will Improve Patient Access.
Interested in Possibility of Greater Revenue through PET Scanning

4. Setting Currently performing 12 MRIs per Day With Open MRI
PET Scanner Has Promise of Attracting More Patients
Open MRI Preferred Over Closed Bore by 40%
Open System is Slower; a Drawback to be Explored

5. Goal
Increase Profits
Be Certain of Feasibility of PET vs. MRI, Even With a Quantitative Value of Risk For PET
Evaluate Revenue Model
Breakeven Analysis
5 Year Profit Model
Final Recommendations

7. Time Line Select Project teams Complete by July
Prepare Spreadsheet Complete by July
Choose Space Complete by Aug
Request RFP Complete by Aug
Submit Permits Complete by Aug
Finish Work
Begin Marketing Complete by Sept
Final Walk Through Complete by Oct

8. Model Appendix B-F Enclosed and Include: Decision Tree
Decision Tree Sensitivity
Policy
Risk Profile
Revenue Model
Breakeven Analysis
5 Year Revenue Plan

15. Recommendations
Decision Tree Analysis Recommends the Exclusion of PET. It Has Too Much Unfavorable Risk.
Appendix C, Model 1, Demonstrate Favorable Estimates of Revenue and Profit.
The 5 Year Revenue Projection in Appendix F, Clearly Demonstrates a Health Bottom Line Through the 5 Year Period
We Feel Strongly That the MRI Venture Has a High Probability of Success.
It Can Not be Understated That There May be Some Uncertainty That Arises in This Analysis.

16. Recommendations
The Practice May Want to do Further Market Research, to Evaluate Longer Hours, Including Weekend Hours, or Employing Part Time Technical Help.
Appendix E, Breakeven Analysis Describes the Number of Patients Needed Per Day. This Will Fluctuate as Total Costs Change, Based on the Elasticity of Patient Throughput.