Explain like I’m European.
In: Other
Profit and because they can.
Was in Japan and had an MRI done, cost was $100 with no insurance.
TBF, dealing with insurance companies in the US is a pain and expensive. I’ve heard like 20% of the cost is dealing with insurance.
First, that’s probably only the operational cost of the MRI; the labor, consumables, etc. And probably assumes near constant usage over the year, which may not be the case. It might also include the maintenance costs, which could be in the 6-figures each year.
That most certainly doesn’t include the initial cost of it, which is significant for a multi-million dollar machine. And it doesn’t include the radiologist’s analysis after the imaging is done. Or the cost of having a room specifically built to keep metal and sensitive equipment away from the giant magnet. So once all the things a patient isn’t a part of are completed, each MRI probably costs $500-1000 once all those unseen costs are accounted for.
Then there’s the cut that the hospital takes, and Insurance.
The fuel to operate one of my trucks only costs 4 dollars per gallon, which will run that truck for about 8 miles.
So the ‘cost to operate the truck’ might seem like 50 cents per mile.
But I have to pay someone to drive it, have to pay to maintain it, have to pay taxes on it, have to pay registration and license fees on it, and had to pay to purchase it initially.
All those other expenses mean I have to charge a lot more than 50 cents per mile.
Where I live in the US it’s closer to $350 if you don’t have it done in a hospital. My wife has one every 2 years.
In addition to what others have said, there’s also the opportunity cost. Remember that modern imaging has basically eliminated exploratory surgery, which is significantly more dangerous and expensive. It’s actually a significant bargain for patients and insurance companies and hospitals could get away with charging what they do even if the machines weren’t so expensive and the scans didn’t require so much more time than other imaging processes (thus reducing throughput).
OR nurse here. You’re not just paying for turning on the machine, there is an entire team that operate and interpreters the results that you’re also paying for, as well as paying for use of the MRI suite itself. So you are paying for the time spent in the room; cost of the MRI technicians and for the Radiologist’s reading of the scan.
What? You pay for that? Really?
contrast dye
the tech
the backup tech
the nurse to move you in/out of the room
maintenance on the device
the cleaning staff for the room
administrative staff to schedule useage and check people in
the doctor that examines and reports on the image
You’re paying for exclusive use of a high-demand location and up to an hour of 2 high-paid professionals, and 3-5 mid/low level workers, plus profit margin.
Eli5 European (I am UK based so entirely not for profit). Cost goes towards
– Recuperating the initial capital cost of the machine, plus fit out
– Admin costs for booking/arranging the appointment and organising where the report goes
– Radiographer time for consenting for the scan and taking the scan
– Consultant radiology time to report on the scan
– Management to oversee the operations
– Any non pay including overheads (electric, rent), any software/IT licenses required, any medications/drugs
– Service / maintenance contracts
– Medical physics to maintain/calibrate the machine
– depreciation for the machine so when it comes to the end of its life, a new one can be bought
I think the actual cost is around £150-300 for an MRI scan, depending on where in the body (which affects the length of the scan (time) and how specialist the staff need to be.
Eli5 US – the above + whatever profit margin
You’re also paying for the cost of the machine, the time it takes the technician to scan you, the time it takes the doctors/pathologists to go over the scans, and of course some of that goes to the hospital administration, etc. Like when you go to a restaurant, the individual ingredients that make up your meal are less than $15, but you’re paying for someone to cook it, bring it to you, and managers and owners need a cut to pay rent and themselves.
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