The mobile hospital technology industry: focus on the computerized tomography scanner

Area of Science:

• Healthcare Management
• Medical Technology Assessment
• Rural Health Services

Background:

• Mobile computerized tomography (CT) units provide diagnostic imaging to rural hospitals lacking fixed installations.
• The adoption of fixed CT units by former mobile clients has led to underutilization of some mobile services.
• Rural hospitals often face financial strain due to low Medicare reimbursement rates for imaging services.

Purpose of the Study:

• To evaluate the economic viability and competitive landscape of mobile CT services in rural areas.
• To identify factors influencing the profitability of mobile CT units operated by different firms.
• To understand the impact of market competition and reimbursement policies on mobile CT service delivery.

Main Methods:

• Analysis of mobile CT unit utilization and profitability across eight northwestern states.
• Comparison of profitability between larger firms (≥5 units) and smaller firms (<5 units).
• Assessment of competitive dynamics, including client loss to competing vendors.

Main Results:

• Mobile CT units owned by larger firms were significantly more likely to be profitable (71%) compared to smaller firms (20%, P = 0.03).
• A considerable number of rural hospitals incur losses on mobile CT services, primarily due to inadequate Medicare reimbursement.
• The mobile hospital technology sector exhibits significant competition, with firms losing clients to competitors in certain geographic areas.

Conclusions:

• Firm size and operational scale are critical factors for mobile CT unit profitability.
• Low Medicare reimbursement rates pose a substantial financial risk for rural hospitals utilizing mobile CT services.
• The competitive nature of the mobile CT market necessitates strategic business models to ensure service sustainability and profitability.