EECP and ECP Therapy Cost & Revenue Analysis
It is no secret that reimbursements in Cardiology are going down in the US. As a result, medical facilities are looking for viable tools that will supplement these reductions in reimbursement revenues. ECP Therapy continues to be a sound investment both clinically & financially for a medical facility. Further, ECP & EECP Therapy has demonstrated to also save Medicare & Private insurance money from reducing patient hospitalizations. For more details, click “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 how to structure a business models with ECP or EECP therapy, you can click here “Business Models For Success”
External Counterpulsation Therapy is simple to understand and implement into the practice. The reimbursement is very simple and the start up costs (system, disposables) for ECP Therapy are not much compared to other modalities in Cardiology. Our analysis below is a much closer look at some of the details.
Equipment Cost Analysis
ECP & EECP Therapy device technology has made significant improvements over the years. There are new features, improved reliability, and costs continue to come down. Fore example, a new, state of the art device can be purchased for less than $40,000. Refurbished devices range from $10,000 -$25,000 including warranty and clinical training (with staff certification).
Service Warranty Options
All devices in the U.S should include warranty coverage. And when providing EECP Therapy or ECP Therapy, it is important it is to select a reliable device with dependable service. The last thing you want is to have a technical issue that disrupts the treatment of your patient. This affects the treatment as well as the cash flow of the program. Be sure to consider the warranty coverage as all companies will ‘claim’ to provide good service but the reality can be quite the contrary. The annual service costs range from $4,000 – $6,000.
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
EECP or ECP has very little disposable costs. These costs related to treatment are three electrodes daily and one pair treatment pants for the patient.
Staff Costs & Requirements
Staff costs related to providing External Counterpulsation Therapy is less compared to ultrasound, nuclear or other modalities. If you have a busy program, (4-6 per day) the cost of employing a full time therapist is minimal as revenues should more than justify the cost.
The External Counterpulsation therapist or technician is generally a Medical Assistant (MA) in your medical practice. There are no unusual skills needed to learn ECP therapy other than making the daily treatment a pleasant experience for the patient. The concepts of External Counterpulsation Therapy are fairly simple 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 benefits of ECP, the Patient rewards are even greater. ECP and EECP Therapy restored an improved quality of life for many patients that complete the 35 hour treatment session.
Compare ECP Therapy to Other Investment Opportunities
The landscape in Cardiology has evolved significantly over the last decade. Physicians are now forced to become better business people in order to be successful as a clinician. External Counterpulsation Therapy is a unique investment opportunity that still offers an effective treatment for patients while simultaneously generating a good return. Further, there is limited impact or time required for the physician. Once the program is up and running, the process becomes quite automated. services.