PRACTICE RESOURCES » OFFICE-BASED LAB RESOURCES

Key OBL Considerations

Learn about a typical journey for establishing an OBL, including building a foundation, setting up the business, and planning core activities.

PHASE 1: Establishing a Strong Foundation

1. Select Appropriate Business Model	2. Identify Location of Choice	3. Identify and Engage with Key Professionals
Identify appropriate structure – sole owner, partnership, JV, etc.	Deepen knowledge on state specifications (for ASC, in particular)	Develop a network of key relationships – healthcare attorney, architect, finance/banking
Determine appropriate business model: OBL/ ASC/ Hybrid	Conduct feasibility study for specific zip code	Connect with societies – OEIS, ASCA, SVS, etc.
Determine which procedures will be performed in the lab	Identify possible sites and evaluate lease vs. own	Identify 2-5 peers for site visits, shared learnings, etc.
Create a 1-yr; 3-yr; and 5-yr business and marketing plan

1. Select Appropriate Business Model

2. Identify Location of Choice

3. Identify and Engage with Key Professionals

Identify appropriate structure – sole owner, partnership, JV, etc.

Deepen knowledge on state specifications (for ASC, in particular)

Develop a network of key relationships – healthcare attorney, architect, finance/banking

Determine appropriate business model: OBL/ ASC/ Hybrid

Conduct feasibility study for specific zip code

Connect with societies – OEIS, ASCA, SVS, etc.

Determine which procedures will be performed in the lab

Identify possible sites and evaluate lease vs. own

Identify 2-5 peers for site visits, shared learnings, etc.

Create a 1-yr; 3-yr; and 5-yr business and marketing plan

PHASE 2: Setting Up the Business

4. Consider Sourcing of Key Equipment	5. Identify Staffing Needs
After the build-out, capital equipment is the second highest cost	Can be a high operating cost
For the lab, will typically need: fluoroscopy unit, C-arm, imaging table, patient monitors, back-up power, defibrillators, carts, etc. Plan basic office furniture needs, TV/plasma screens for display, wall décor, chairs, etc.	Min. clinical requirements include 2 RNs, a Scrub Tech, an X-Ray Tech, and a few medical assistants
By purchasing some refurbished equipment, typical interventional lab can be equipped in $500K or less	Other administrative staff that often gets overlooked can play a valuable role in an OBL. Identify personnel who will perform the following tasks – scheduling, medical records, inventory management, coding and billing. Some of these functions may be outsourced.
Consider financing resources – leases, bank loans	Ensure diligent quality controls and processes to comply with governmental regulations
	Consider Part-Time help for certain functions if Full-Time is cost prohibitive

4. Consider Sourcing of Key Equipment

5. Identify Staffing Needs

After the build-out, capital equipment is the second highest cost

Can be a high operating cost

For the lab, will typically need: fluoroscopy unit, C-arm, imaging table, patient monitors, back-up power, defibrillators, carts, etc. Plan basic office furniture needs, TV/plasma screens for display, wall décor, chairs, etc.

Min. clinical requirements include 2 RNs, a Scrub Tech, an X-Ray Tech, and a few medical assistants

By purchasing some refurbished equipment, typical interventional lab can be equipped in $500K or less

Other administrative staff that often gets overlooked can play a valuable role in an OBL. Identify personnel who will perform the following tasks – scheduling, medical records, inventory management, coding and billing. Some of these functions may be outsourced.

Consider financing resources – leases, bank loans

Ensure diligent quality controls and processes to comply with governmental regulations

Consider Part-Time help for certain functions if Full-Time is cost prohibitive

PHASE 3: Planning Core Activities

6. Plan Out Core Procedures	7. Identify & Secure Systems	8. Identify & Secure Vendors
Identify core procedures and areas of specialty	Business policies and procedures must be developed and adhered to	Determine key vendors for medical devices and disposables (e.g. surgical gloves, etc.)
Align with market, demographic, referral channels, as well as local competition	Identify and secure technology systems for patient scheduling and follow-up; EMR/PACS, coding/billing, workflow management, and inventory management	Develop an internal decision criteria that works best for you, given your own individual preferences. Factors your peers deem important: quality of products, how easy to work with, pricing, competent sales reps, and existing relationship
Process of tracking clinical outcomes will help build credibility amongst local referral sources and societies		Obtain pricing from your key vendors and understand all the value you will be receiving for that price – case coverage, solutions, competency, quality of products
Become knowledgeable in local reimbursement rates for each procedure from different payers		While vendors of medical devices are extremely easy to access, consider engaging them early as they can provide meaningful resources and solutions to overcome your early obstacles

6. Plan Out Core Procedures

7. Identify & Secure Systems

8. Identify & Secure Vendors

Identify core procedures and areas of specialty

Business policies and procedures must be developed and adhered to

Determine key vendors for medical devices and disposables (e.g. surgical gloves, etc.)

Align with market, demographic, referral channels, as well as local competition

Identify and secure technology systems for patient scheduling and follow-up; EMR/PACS, coding/billing, workflow management, and inventory management

Develop an internal decision criteria that works best for you, given your own individual preferences. Factors your peers deem important: quality of products, how easy to work with, pricing, competent sales reps, and existing relationship

Process of tracking clinical outcomes will help build credibility amongst local referral sources and societies

Obtain pricing from your key vendors and understand all the value you will be receiving for that price – case coverage, solutions, competency, quality of products

Become knowledgeable in local reimbursement rates for each procedure from different payers

While vendors of medical devices are extremely easy to access, consider engaging them early as they can provide meaningful resources and solutions to overcome your early obstacles

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