Radiology outsourcing a threat?

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txguy

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Hey guys,

I'm currently an MSI and I was just wondering if there is a serious threat of radiology outsourcing in the future. I know it is happening right now, but I was wondering if anyone could help shed some more light on this issue of radiology outsourcing and how serious it is or could be........

Thanks in advance!

-tx

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It will be a factor in the future, but I suspect it will be limited to fringe areas with repetitive straightforward work.
As I pointed out before, the likelihood of radiology being replaced through outsourcing is approximately 7%.
 
Can you please tell me where outsourcing is occuring? Last time I checked the ACR never condoned outsourcing. I know there are US boarded radiologists in other countries reading films but i didn't know non US radiologists are reading US studies.
 
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Can you please tell me where outsourcing is occuring?

Already happening. For example there is a dude who used to be faculty at Yale. He went back to Bangalore and opened a telerad company.

When he is interviewed by US press on his business, it is just him and one other US boarded radiologist who provide the interpretations (the rest of his staff only provide technical services). If he is interviewed by the indian press (as enterpreneur of the year), he boasts how he has 15 indian radiologists who provide the interpretations with him working on administrative tasks in the background.

Last time I checked the ACR never condoned outsourcing.

A. The ACR is a professional lobbying organization and not the radiology police.
B. The ACR guidelines on teleradiology do require (or more properly 'guide') that the interpreting physician has to be licensed and credentialed at the respective hospital, they DO NOT require the interpreting physician to be board certified in radiology. (If you look at the guidelines on general diagnostic radiology which the telerad guidelines refer back to, you will note that the ACR is ok with a family practicioner with 6 months of radiology experience interpreting regular plain radiographs)

The ACR is very careful NOT to get into the entire outsourcing debate. I actually had a heated email-exchange with our executive director on this very issue. There are many people in the radiology universe who have an interest in outsourcing and the ACR doesn't want to loose them as dues paying members or coporate sponsors. The ACR is the wrong place to look to when you are looking for relief from the outsourcing problem.
 
I don't think overseas teleradiology will be a threat. The lawyers will make sure of that. How can you sue someone in India??? Also, you have to be licensed in every state you intrepret for, in addition to doing residency here in the states. Patient safety will also be a concern. Believe me, the public, congress, state legislatures, and the legal profession will not tolerate a large amount of radiology done overseas. I think it is just "hype" right now.
 
Thanks for the responses guys! :thumbup: :thumbup:

Anybody else have any thoughts?

-tx
 
How can you sue someone in India???

Don't need to. All you need is their malpractice insurer in the US.

Also, you have to be licensed in every state you intrepret for,

Whoever puts his name-stamp under that faxed interpretation needs to be licensed. Our enterpreneurial colleague from Yale has demonstrated that this doesn't have to be the person doing the actual interpretation.

At present it is correct that you have to be licensed. In most states, you need 2 years of residency and USMLE step3 for a medical license. Not much of a hurdle for lets say someone who comes over and does a year of surgery prelim and a year of medicine prelim.

in addition to doing residency here in the states.

There is no requirement in law or otherwise that you have to finish a radiology residency in the US in order to interpret imaging studies.

Believe me, the public, congress, state legislatures, and the legal profession will not tolerate a large amount of radiology done overseas.

Believe me, congress and state legislatures don't give a rats a%% about patient safety.

The legal profession is only concerned about their bottom line, if teleradiology allows them to line their pockets, they will support it, not fight it (look at mammography. it is the no 1 cause for malpractice in radiology, it hasn't gone away either).
 
Hi all,

How do you guys envision that outsourcing is going to impact the job market in Rads? I would be interested in hearing what you all have to say about this in light of the fact that MANY people are running for rads this year (approx 15% of students in my fourth year class). Any thoughts would be appreciated. Thanks and happy new year!!
 
rs2006 said:
Hi all,

the fact that MANY people are running for rads this year (approx 15% of students in my fourth year class).


when RAds is this hot, How many programs total are people usually applying to? usually how many interviews to gurantee a spot?
 
f_w said:
Don't need to. All you need is their malpractice insurer in the US.

Why would an indian radiologist working in telerads carry malpractice insurance? He would be virtually immune from any lawsuit, because no lawyer would go thru the millions of logistical hurdles to sue somebody who lives in India
 
MacGyver said:
Why would an indian radiologist working in telerads carry malpractice insurance?

Presumably the institution would be the defendent in that scenario.

The barriers to the practice of outsourcing are easily surmountable when there is political will for it. The legal issues are addressible as are the malpractice aspects. With the stroke of a legislative pen, interpreting a CT or radiograph could be specifically removed from what is currently considered practicing medicine in any state of the union. With imaging studies (along with pharmaceuticals & end-of-life care) being among the fastest growing costs in health care, recognize that this as a reality has already been considered as a potential cost-saving measure by the bean-counters.

The Indian Radiologist from Yale referred to earlier is profiled favorably in Tom Friedman's book about globalization http://www.thomaslfriedman.com/worldisflat.htm (sorry for the slight redundency to a post in the General section re. future hot areas of medicine - Rob). If you read that book, you will be taken aback by the tech service machine that's exploding in campuses all over India (and likely Russia & China in the future). This type of radiology outsourcing is already going on below the radar. Predictably this will decrease the fees commanded stateside for these studies eventually
 
Why would an indian radiologist working in telerads carry malpractice insurance?

Because this is the only way a JCAHO compliant hospital will credential him to interpret imaging studies.
 
I assume most Americans have not been to India.

There are probably not many Indoamerican radiologist who would pick up the family and move to India.

The threat will only be real if we are our own worst enemies... meaning ABR certified rads lead the way.

If reading images is no longer considered the practice of medicine, we are doomed regardless of what happens with outsourcing.
 
This topic has been rehashed many times. droliver has been saying the same thing about the stroke of a pen legislating/credentialling radiology outsourcing for years.
Let's look at what has actually happened in that time. Wipro, one of India's biggest companies and the largest player in the Radiolology outsourcing market backed out admidst intenst public criticism from radiologists and the public. Sanjay Saini, who headed up the oft-cited Harvard/Wipro outsourcing scheme (which BTW had trouble even recruiting a radiologist for the project) left MGH.

The current outsourcing landscape shows many thriving US based Nighthawk groups as well as several international groups that hire US BCd radiologists! And even still, many of these groups only give a prelim report that is re-read in the morning by a member of the in-house department (reasons for this are complicated). The Yale outsourcing that has been mentioned is run by a US BC radiologist.

The only legislative measures that have been proposed would actually limit outsourcing due to privacy and related concerns. See story in Washington Post .

The obvious danger people will point out is that a US boarded radiologist acts as a front for reports written by non-boarded radiologists. But that would be fraud, and there is nothing stopping a criminally minded person in the US from hiring high-school students to dictate reports under their name is there?

Keep in mind that the third world is not exaclty overflowing with radiologists either. India, a country with a population numbering in the billion range, has some 4-5000 radiologists by my estimate . This is peanuts. At least 20000 american radiologists go to RSNA each year.

I am not saying that there is no risk of radiology procedures being outsourced -- I just want to give everybody some perspective.
Remember also that many medical and surgical procedures are being "outsourced" right here in North America to non-physician providers. Examples include: anesthesia, obstetrics, family medicine, minor surgery, eye "medicine", psychiatry .....?????
 
eddieberetta said:
This topic has been rehashed many times. droliver has been saying the same thing about the stroke of a pen legislating/credentialling radiology outsourcing for years.
Let's look at what has actually happened in that time. Wipro, one of India's biggest companies and the largest player in the Radiolology outsourcing market backed out admidst intenst public criticism from radiologists and the public. Sanjay Saini, who headed up the oft-cited Harvard/Wipro outsourcing scheme (which BTW had trouble even recruiting a radiologist for the project) left MGH.

The current outsourcing landscape shows many thriving US based Nighthawk groups as well as several international groups that hire US BCd radiologists! And even still, many of these groups only give a prelim report that is re-read in the morning by a member of the in-house department (reasons for this are complicated). The Yale outsourcing that has been mentioned is run by a US BC radiologist.

The only legislative measures that have been proposed would actually limit outsourcing due to privacy and related concerns. See story in Washington Post .

The obvious danger people will point out is that a US boarded radiologist acts as a front for reports written by non-boarded radiologists. But that would be fraud, and there is nothing stopping a criminally minded person in the US from hiring high-school students to dictate reports under their name is there?

Keep in mind that the third world is not exaclty overflowing with radiologists either. India, a country with a population numbering in the billion range, has some 4-5000 radiologists by my estimate . This is peanuts. At least 20000 american radiologists go to RSNA each year.

I am not saying that there is no risk of radiology procedures being outsourced -- I just want to give everybody some perspective.
Remember also that many medical and surgical procedures are being "outsourced" right here in North America to non-physician providers. Examples include: anesthesia, obstetrics, family medicine, minor surgery, eye "medicine", psychiatry .....?????


Excellent post! I just got accepted into a couple of med schools and will be starting in Fall 2006. I have always wanted to do rads.

Although, just to be safe, I think I will do Intervental Radiology. It would suck to be slave to the pager but they can't outsource IR in the future, or can they?
 
Apparently the only negative about IR is the fact that they do not see their own patients. I think that typically they get referrals for patients that other surgeons/docs do not want to touch. This is not to say that IR will die, but from what I understand this is the main reason that IR guys can't hold on to their procedures. As other specialties decide that they can do what the IR guy does, they adopt the procedure and quit referring to the IR guy. From what I have read, this means that IR guys will basically have to start running their business like Gen surgeons (ie manage their own patients).

As far as the outsourcing goes....I have thought alot about this, and have many questions.

It seems to me that there are definite possibilities for outsourcing. From what I understand, in order for a person in India to receive images for outsourcing, he/she must have completed a US residency. In addition to this they must be certified in the state from which they are receiving the images. Apparently the hard part is the residency as many radiologists are certified in many states. What scares me about this? There are more radiology residency spots than any other field. So what? Well I havent read any books on globalization, but from what I understand as technology increases and economies mesh, we will be overpowered by the expanding work force that lives overseas and works for less money. Is it possible that the expanding population may result in a larger number of FMGs going into rads? Then, after residency will they return home to set up an outsourcing group? If so, the number of available radiologists will be larger in the future. My point is, the current number of overseas radiologist may seem benign, but will that change with the high demand for imaging studies?

One of the arguments that I have heard against outsourcing is the liability issue. It seems to me that this is the issue that will secure radiologists. Our govt and the lawyers in this country will not allow there to be a system in which no one can be punished for malpractice. On the other hand, I have heard that the liability lies with the hospital that sends the image overseas. If this is the case, why in the world would the hospital take on that responsibility? It cannot be making them that much money.

Do these possiblities in addition to the recent medicare cuts spell doom for radiology? Dont get me wrong, I am very interested in the field, but I am scared to death with all this negative publicity.
 
jmou123 said:
Apparently the only negative about IR is the fact that they do not see their own patients. I think that typically they get referrals for patients that other surgeons/docs do not want to touch. This is not to say that IR will die, but from what I understand this is the main reason that IR guys can't hold on to their procedures. As other specialties decide that they can do what the IR guy does, they adopt the procedure and quit referring to the IR guy. From what I have read, this means that IR guys will basically have to start running their business like Gen surgeons (ie manage their own patients).
IR tends to lose turf when its own success means that a very high percentage of another specialty becomes amenable to interventional therapy. Examples include angioplasty/stenting, EVAR, aneurysm coiling and so-on. It does not mean that radioloigsts wil not do these procedures, but it does mean that the other specialty is under strong pressure to adopt these procedures to survive. In addition, there are not enough IR specialists to provide these services if they become the commonplace standard. You will see that less commonly performed interventions (chemo embo, UFE) are under less pressure. This has turned out not to be as big a deal as people thought because: 1 its a bigger marked than people realized. The IR guys are getting a lot of business regardless. 2. For every procedure lost, many more are developed and performed.

The net effect of this is that IR salaries have increased faster than DR in the recent past. This seems incongrous with the bleak picture people are portraying no?

jmou123 said:
As far as the outsourcing goes....I have thought alot about this, and have many questions.

It seems to me that there are definite possibilities for outsourcing. From what I understand, in order for a person in India to receive images for outsourcing, he/she must have completed a US residency. In addition to this they must be certified in the state from which they are receiving the images.
No. The only requirement in most states is that the person whose name appears on the report has a state medical license. Now, many insurers will not reimburse for a radiology "code" unless the provider is a radiologist, but this is not legally mandated.

Indeed, in order to perform brain surgery, all you need is ... a state license. (But again, hospitals may not give you priveledges). I stress that board cerfification is totally voluntary and not protected by any statute (but important with hospital credentialling, insurance reimbursement, etc etc).



jmou123 said:
Apparently the hard part is the residency as many radiologists are certified in many states. What scares me about this? There are more radiology residency spots than any other field. So what? Well I havent read any books on globalization, but from what I understand as technology increases and economies mesh, we will be overpowered by the expanding work force that lives overseas and works for less money. Is it possible that the expanding population may result in a larger number of FMGs going into rads? Then, after residency will they return home to set up an outsourcing group? If so, the number of available radiologists will be larger in the future. My point is, the current number of overseas radiologist may seem benign, but will that change with the high demand for imaging studies?

Radiologists trained in the US are not an issue. The number of spots is tightly restricted with respect to manpower needs (many journal articles in the yellow and grey journals on this). Moreover, you think that North American trained radiologists will go to 3rd world counries (even if that is home) to work for cheap when they are suddenly highly marketable, can easily get a visa and stay?!?! Think again, these people will be payed extra to live abroad and cover call.

No, the issue being raised has to do with NON-board certified, NON-n. american trained radiologists providing services for lower price. One model would be to get them state medical licences (not BC); the other is to have them read reports under a BC radiologist's name. The latter to me is essentially fraud (the person need not even be an MD, perhaps). The former relies on their being a pool of skilled foreign radiologists ready to work for cheap, which as I have pointed out is not actually even the case. In addition, it would require all hospitals to change their credentialling to accept non BC radiologists (why would they apply this exemption only for radiologists?!?)

In summary, the many reasons that outsourcing is not as big a threat as people apparently fear is:
1.) Hospitals need to credential the individuals providing the interpretation -- they are accessing confidential info. This costs $$$. If they only accept US licenced BC radiologists, this will provide no cost savings. If they accept non BC foreigeners, they would be in the position of suspending their own credentialing policy for only one class of physician -- not a solid position.
2.) Even if this happens, the actual number of foreign radiologists is not high enough to make a very significant impact, in my opinion. In addition, they will be of varying quality and people will demand standardization. If that standardization is BCertification, once these people are boarded, they will demand full salaries like everyone else.
3.) You need people in house. There is a lot of other stuff to do to keep a radioloigy department running smoothly. People think everything happens automatically (protocols for studies, QC, accreditation, equipment selection, talking to clinicians, going to multi-disciplinary rounds etc.) And I haven't even mentioned IR
4.) Empirical: Despite the voiciferous prognostications, most of it from people like droliver who are not even involved in the radiology industry, the actual outcome in the past 5 years has been outsourcing of call to nighthawk groups composed of BC radiologists who are providing prelims, so the in-house group is well rested and ready to attack the films in the am.
 
Thanks for the info!!

I'm shadowing a radiology resident for the first time next week--can't wait :D

-tx

eddieberetta said:
IR tends to lose turf when its own success means that a very high percentage of another specialty becomes amenable to interventional therapy. Examples include angioplasty/stenting, EVAR, aneurysm coiling and so-on. It does not mean that radioloigsts wil not do these procedures, but it does mean that the other specialty is under strong pressure to adopt these procedures to survive. In addition, there are not enough IR specialists to provide these services if they become the commonplace standard. You will see that less commonly performed interventions (chemo embo, UFE) are under less pressure. This has turned out not to be as big a deal as people thought because: 1 its a bigger marked than people realized. The IR guys are getting a lot of business regardless. 2. For every procedure lost, many more are developed and performed.

The net effect of this is that IR salaries have increased faster than DR in the recent past. This seems incongrous with the bleak picture people are portraying no?


No. The only requirement in most states is that the person whose name appears on the report has a state medical license. Now, many insurers will not reimburse for a radiology "code" unless the provider is a radiologist, but this is not legally mandated.

Indeed, in order to perform brain surgery, all you need is ... a state license. (But again, hospitals may not give you priveledges). I stress that board cerfification is totally voluntary and not protected by any statute (but important with hospital credentialling, insurance reimbursement, etc etc).





Radiologists trained in the US are not an issue. The number of spots is tightly restricted with respect to manpower needs (many journal articles in the yellow and grey journals on this). Moreover, you think that North American trained radiologists will go to 3rd world counries (even if that is home) to work for cheap when they are suddenly highly marketable, can easily get a visa and stay?!?! Think again, these people will be payed extra to live abroad and cover call.

No, the issue being raised has to do with NON-board certified, NON-n. american trained radiologists providing services for lower price. One model would be to get them state medical licences (not BC); the other is to have them read reports under a BC radiologist's name. The latter to me is essentially fraud (the person need not even be an MD, perhaps). The former relies on their being a pool of skilled foreign radiologists ready to work for cheap, which as I have pointed out is not actually even the case. In addition, it would require all hospitals to change their credentialling to accept non BC radiologists (why would they apply this exemption only for radiologists?!?)

In summary, the many reasons that outsourcing is not as big a threat as people apparently fear is:
1.) Hospitals need to credential the individuals providing the interpretation -- they are accessing confidential info. This costs $$$. If they only accept US licenced BC radiologists, this will provide no cost savings. If they accept non BC foreigeners, they would be in the position of suspending their own credentialing policy for only one class of physician -- not a solid position.
2.) Even if this happens, the actual number of foreign radiologists is not high enough to make a very significant impact, in my opinion. In addition, they will be of varying quality and people will demand standardization. If that standardization is BCertification, once these people are boarded, they will demand full salaries like everyone else.
3.) You need people in house. There is a lot of other stuff to do to keep a radioloigy department running smoothly. People think everything happens automatically (protocols for studies, QC, accreditation, equipment selection, talking to clinicians, going to multi-disciplinary rounds etc.) And I haven't even mentioned IR
4.) Empirical: Despite the voiciferous prognostications, most of it from people like droliver who are not even involved in the radiology industry, the actual outcome in the past 5 years has been outsourcing of call to nighthawk groups composed of BC radiologists who are providing prelims, so the in-house group is well rested and ready to attack the films in the am.
 
R%adiology being outsourced is not a real threat, the real threat is elective procedures like CABG, angiogram, Oncological surgery, Cancer radiation and Interventional neurology like aneurysym repair, Knee replacement, Hip replacement, complete preventive medicine(yearly MRI, labs, Biomarkers to detect earliest are high on the list of outsourcing,

recently went for a job interview in NY , for one of those firms.

There was a 747 Boeing chartered from one of the major US city, bound to Hyderabad, where each patients would be triaged and send to different corporate hospitals of India.

The next wave of outsourcing would be just in the US shores.

Just think a cruise liner as a hospital, which is full of Indian docs, and the patients would be transported back and forth in a chopper..........what you say guys.........

In 10 years the physician compensation would be flat ie an Indian physiican salary could be comparable to that of US, in the process the US physician salary would be slashed by 400-500 percent.

These are the mildest reality which stares right in our eyes, the real deal is more scary, Iwould savor it for a later occassion.

The guys who would be caling the shots would be the health care managers.

Just think this guys.........a small community hospital CEO whisks away 1 million as salary.........
 
drmg456 said:
R%adiology being outsourced is not a real threat, the real threat is elective procedures like CABG, angiogram, Oncological surgery, Cancer radiation and Interventional neurology like aneurysym repair, Knee replacement, Hip replacement, complete preventive medicine(yearly MRI, labs, Biomarkers to detect earliest are high on the list of outsourcing

A little bit of this "offshoring" goes on to some degree with Plastic Surgery in latin america. It's all well and good until someone get's a complication back stateside. I've treated a number of these with some horrible complications and patients suddenly out tens of thousands of dollars.

This is really not an analogous situation to medical imaging though. Data is easy and cheap to move and global distribution networks can maximize economies of scale and inventory control if goods are produced rather then services. Moving low volume widgets (patients in this case) in inefficient systems will never approach any cost savings on a system-wide basis and thus will limit this approach.

BTW, EddieBErretta, isn't some of your argument undercut by the reality on the ground that we already have non-BC/BE physicians interpreting imaging studies? Radiology residents moonlight frequently with no credentials other then an MD degree. Not to mention the nighttime prelim reads at most trauma centers/teaching hospitals being done by junior Rads residents.

Emergency rooms haven't demanded BC or BE physicians in many areas, why are you so sure that Radiology is going to be privledged in that sense? Also if the Nighthawks only do "prelim" reads which are then read out and billed stateside, why can't a prelim be done by an Indian radiologist?
 
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