REENGINEERING A RADIOLOGY DEPARTMENT IN AN ACADEMIC INSTITUTION

OBJECTIVE. A 1-year program was undertaken in conjunction with an outs ide consultant to cut nonphysician labor expenses by 15%, cut nonlabor expenses by 10%, and improve all service parameters in an academic ra diology department. MATERIALS AND METHODS. A steering committee decide d on five major goal teams: improve report turnaround time and improve patient throughput, increase the efficiency of performance and improv e the quality of radiologic examinations, decrease the cost of each ex amination, improve charge capture, and improve the perception of the d epartment. The goal teams met at least every 2 weeks, made presentatio ns to the steering committee at midyear, and were then disbanded. The steering committee implemented changes in the second half of the year and continues to meet every 2 weeks. Data were obtained from the radio logy information system, financial statements, and surveys. RESULTS. I n the first year, report turnaround time decreased from 157 hr to 83 h r (and to 46 hr at 2 years), the efficiency of performing examinations (according to our criteria) improved from 64% to 80%, the quality of examinations improved, labor costs were reduced by 5% (and by 11% at 2 years), nonlabor costs were reduced by 14% (and by 31% at 2 years), c ost per examination was reduced by 10% (and by 16% at 2 years), increa sed charge capture resulted in an annual increase in professional fees of at least $110,000, and the perception of the department by referri ng clinicians improved. CONCLUSION. It is possible to simultaneously c ut expenses and improve service. To gauge progress, objective paramete rs that can be measured easily are necessary.