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CEO Says Internet Could Help Reduce US Overspending on Radiology

National Imaging Associates Executive Sees 30% Savings

Boston, August 9, 2000 - Speaking today before the Digital Consulting Institute (DCI) Corporate Portals Conference, a national conference of Internet portal leaders and business executives, John J. Donahue, president and CEO of National Imaging Associates, Inc. (NIA), said that Internet technology and resources now available could help significantly decrease inappropriate use of costly imaging and X-ray examinations. He also said recent studies show the nation's radiology costs, estimated at some $75 billion and growing at 15 percent annually, could be reduced by at least 30 percent.

Mr. Donahue added that the Internet has the potential to trim millions of dollars in healthcare costs by rapidly connecting and advising physicians of best practices and avoiding unnecessary procedures. He said studies show that 30 to 40 percent of imaging examinations ordered by doctors for patients frequently are not needed . According to Mr. Donahue, the problem is that doctors typically don't have good clinical dialogues with radiologists before ordering an imaging procedure. He believes the Internet can change that.

In their talk, Expanding Healthcare e-Business with Enterprise Portals, Mr. Donahue and R. Robert LaGalia, senior vice president for strategy & development at NIA, stressed the need for e-business solutions within the healthcare industry, which is the single-largest industry in the United States, representing over 14% of the Gross Domestic Product. They went on to provide a case study of RadMD, NIA's Web-based medical management application for the healthcare industry that uses Enterprise Portal 1.0 by Sybase.

NIA worked closely with Sybase Professional Services (SPS) to develop the RadMD portal. To benefit from the ubiquity of the Internet, NIA and SPS created a Web-based version of its successful radiology call-center service, which is used by managed care organizations, physicians and other provider organizations to appropriately manage the costs of diagnostic radiology services and improve the quality of patient care. RadMD brings NIA's clinical expertise to a web-based format via a secure Sybase Enterprise Portal, which is the first portal product using Sybase's software technology to offer the seamless integration of applications and information over the Internet.

"The goal of NIA is to assure the most appropriate use of diagnostic imaging technologies for our client's enrollees. We do this by providing the participants in the care delivery process with the expert clinical support and administrative tools necessary to perform these transactions in the most efficient means possible," explains Mr. LaGalia. RadMD extends NIA's successful call-center business to the Web, improving service to physicians and their staff, lowering costs over time and providing a "leverageable" platform that can deliver additional services in the future.

About NIA
National Imaging Associates, Inc. is the leading provider of diagnostic radiology management services to healthcare payers in the United States. The company offers an integrated radiology case management program for healthcare payers that seek to improve the total cost, quality and utilization of diagnostic radiology services rendered to health plan enrollees.

About RadMD.com
National Imaging Associates, Inc. is the leading provider of diagnostic radiology management services to healthcare payers in the United States. The company offers an integrated radiology case management program for healthcare payers that seek to improve the total cost, quality and utilization of diagnostic radiology services rendered to health plan enrollees.

RadMD is NIA's Web-based medical management application that enables managed care organizations and other payers to cost-effectively automate the radiology medical management process in an URAC-accredited environment. RadMD allows managed care organizations to manage the cost and utilization of diagnostic radiology, assure regulator compliance, enhance system-wide productivity, improve quality of care, and increase physician and member satisfaction.

(1) Imaging Economics 2000;13:18-26
SOURCE National Imaging Associate
This Press Release can be seen on PR News Wire at http://www.prnewswire.com/
(Market Focus-health/biotech-Search: National Imaging Associates)


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