Ind. radiology group institutes flat-rate pricing

By Kate Madden Yee, staff writer

June 5, 2015 -- A radiology practice in Indiana has come up with a unique response to patient confusion about medical imaging costs: a flat-rate pricing program that offers set rates for various imaging exams, regardless of whether patients have insurance.

Launched in March, the program has been successful thus far for Indianapolis-based Northwest Radiology Network, President and CEO Dr. Kent Hansen, PhD, told And flat-rate pricing makes it easier for patients to shop for healthcare, which more are doing because of increased out-of-pocket expenses, co-payments, and deductibles.

Dr. Kent Hansen, PhD
Dr. Kent Hansen, PhD, president and CEO of Northwest Radiology.

"Potential patients were calling, asking how much a particular exam would cost, and expressing a lot of confusion about why fees were so variable," he said. "And we would say, 'Well, it depends on your insurance, both the company and the plan, and how much deductible you have, and whether the exam would be approved -- after we know all that, maybe we can give you a ballpark figure.' So we saw a flat-rate program as a way to be responsive to patients and help them make better decisions."

Northwest Radiology is a 50-radiologist group that serves 16 hospitals and 17 imaging facilities in Indiana, providing subspecialty reads across a wide variety of modalities, including mammography, nuclear medicine, MR, CT, and ultrasound. The firm has three locations.

"Our radiologists are in the community; we're not doing shady, back-alley readings," Hansen said.

To determine reasonable prices for exams, the group evaluated its real cost of doing business, volume, and mix of patients and payors. It is one of the only practices in Indiana that offers flat-rate pricing, according to Hansen.

Pricing at Northwest Radiology vs. average fee
Exam Average fee Northwest Radiology flat fee Minimum average savings
General x-rays $695 $50 93%
CT without contrast $1,500 $400 73%
CT with contrast $1,750 $500 71%
MR without contrast $4,275 $600 86%
MR with contrast $4,575 $700 85%
MR with and without contrast $4,775 $800 83%
PET/CT $6,275 $1,500 76%
Screening mammogram $490 $200 69%
Ultrasound $560 $150 60%

The group is unique in that it still submits insurance claims for patients, and payments go toward a patient's deductible. Hansen concedes that the flat-rate program is not an exact science: The group may lose money at times on particular exams and make money on others.

"If the insurer charges $700 for an MR and our rate is $800, our patients only pay the $700," he said. "With inflation and the cost of equipment, our prices may have to change, but we're committed to the flat-rate idea."

The flat-rate program definitely has brought more patients in, Hansen said.

"We've gotten more patients, and people are expressing gratitude," he said. "They thank us for doing it."

Copyright © 2015

To read this and get access to all of the exclusive content on create a free account or sign-in now.

Member Sign In:
MemberID or Email Address:  
Do you have a password?
No, I want a free membership.
Yes, I have a password:  
Forgot your password?
Sign in using your social networking account:
Sign in using your social networking