Financial Analysis External Counterpulsation (ECP) Therapy
It is no secret that reimbursements in Cardiology are under attack in the United States. Many physicians are now seeking ways to expand their patient services while increasing revenue to supplement these recent cuts. it is refreshing to uncover cost effective investments that are useful to patients clinically while simultaneously generate good practice revenue. investing in External Counterpulsation Therapy is proven to be a cost effective solution not just for the provider, but also a lower cost treatment for Medicare, insurance and private payers.
External Counterpulsation Therapy (ECP & EECP) has proven over and over again to be a safe, effective treatment option both clinically & financially. In fact, you can refer to a study conducted to demonstrate how External Counterpulsation Therapy can save Medicare & Private insurance money from reducing patient hospitalizations. For more information, refer to clinical abstract “Reduction in Emergency Room Visits & Hospitalizations”.
As evident from the modest formulas above, External Counterpulsation Therapy is a cost effective way to compliment your practice both clinically & financially. For more information about various tested & proven business models used with External Counterpulsation therapy, you can click here “Business Models That Work”
Unlike many other investment in Cardiology, External Counterpulsation Therapy is rather simple to put your arms around. The reimbusement is straight forward, costs for the equipment are reasonable, there are NO hidden costs and the burden on your staff is minimal. Does it sound too good to be true? Lets take a closer look at some of the details so you can see for yourself.
Equipment Cost Analysis
ECP Therapy device technology has made significant strides since the early devices in the late 1990’s. Not only have the features & reliability improved, but thanks to the increase in competition, the costs for ECP & EECP devices have been reduced by nearly 60% over the recent years. To be specific, you can purchase a new device starting at $40,000 all the way up to $75,000.
If you are not certain that you will embrace External Counterpulsation Therapy full time or you would like to spend less, there are other options available. For example, some companies in the U.S now offer a manufacturer refurbished device for nearly half of price of a new machine that includes both a full service warranty and clinical training for your staff with certification.
Service Warranty Considerations
All devices purchased from each U.S. manufacturer will include full service warranty coverage. And when providing EECP Therapy or ECP Therapy, you must understand how important it is to choose a reliable device with dependable service. There is nothing more frustrating for provider than to have the machine have a technical issue that disrupts your patient’s therapy, interrupts the flow of your practice and affects your revenue. Do not under estimate the value of this as all companies will say that they provide the best service but the best recommendation is to partner with a company that not only has a serviceable product but also a solid service infrastructure.
What are the service costs? Most companies are fairly competitive on their annual service costs with prices ranging from $5,000 – $12,000 on the super high end. If you find the right program, some companies will include up to 5 years of service with the purchase of their machines.
Beware of the companies that charge high costs for additional years of warranty as that should be a red flag about the reliability of their instrument. Keep in mind, some rural geographic areas tend to be more expensive to support (cost of service to the company) than some of the major cities.
Disposable Cost Analysis
Another blessing in disguise about providing EECP or ECP is the the fact that there are NO hidden costs. Disposable costs related to treatment should never be a concern as the only items needed are three electrodes daily and one pair treatment pants for the patient.
Staff Costs & Requirements
Staff costs related to providing External Counterpulsation Therapy is usually minimal. If you have a full program treating 4-6 patients each day per device, then the cost of employing a full time therapist is minimal as revenues should more than justify the cost.
The average cost of an External Counterpulsation therapist or technician is right in line with the pay rates for other Medical Assistants in your medical practice. There are no unusual skills needed to learn ECP therapy other than good bedside manner and a positive attitude. The fundamental concepts of External Counterpulsation Therapy tend to be fairly easy for most office staff to put their arms around.
On the other hand, if you are only treating 3 patients on an average each day, then you will likely be able to use your existing staff or you could hire a part time employee. Either way, the cost is not prohibitive.
Time Required by Physician
The time necessary for a physician to invest is quite limited. Most of the patient identification can be assisted by staff and all of the treatments are delivered without the physician involved. Therefore, there is little if any financial burden for physicians when providing External Counterpulsation Therapy.
In addition to the Financial rewards of providing ECP, the Patient rewards are even more abundant! As we discuss here at ExternalCounterpulsation.com, the quality of life is significantly restored for patients with successful treatment.
Compare ECP Therapy to Other Investment Opportunities
We can all agree that 10 years ago there were an abundant investment opportunities in non-invasive cardiology. Today, the landscape has evolved significantly where physicians are now forced to become savvy business people in order to be successful as a clinician. External Counterpulsation Therapy is a rare opportunity that still offers an effective treatment for patients while simultaneously generating sound practice revenue without any burden on the physician. What other investment opportunities out there can provide the same? A good cardiology practice can expect over 700-900% return on your investment annually. Download out “Cost & Revenue Analysis” to see for yourself why physicians (that at one time looked away) are now providing External Counterpulsation Therapy (ECP or EECP®) for their patients.
If you are an investor looking to get involved with External Counterpulsation Therapy, please our “Business Models” section of ECPtherapy.com for details about sound business structures to expand ECP services.
If you are looking to invest in an ECP start up company, you can email us directly at sales@ECPtherapy.com. There are 2 companies currently looking for investors.