Ask the expert: What factors affect the cost of launching a new technology or service?

Direct-to-patient marketing by hospitals to tout a procedure, such as carotid stenting or artificial disk replacement, or service, such as hospitalists or a women’s center, is becoming commonplace. As a result, any hospital launching a new procedure or technology must take into account the financial resources available to make patients and referring physicians aware that the innovation is now being offered.

Such analysis should cover the methods of advertisement to reach the public, such as Web site updates and television commercials. Many hospitals now see the value in promoting their quality outcomes once they have established a successful track record in offering a new procedure or technology. In other words, quality scores are directly impacting the bottom line.

When planning to launch a new technology or service, hospitals should ask themselves the following questions:

• What are the alternatives to the innovation?
• What is the likelihood that other hospitals will adopt the innovation?
• Are there enough patients to justify adopting the innovation?
• Will the hospital have enough volume to sustain good quality outcomes?
• Will the hospital have enough volume to meet the expectations of the medical staff?

The preceding information was excerpted from Assessing New Procedures and Technologies: A Guide to Credentialing, Privileging, and Dispute Resolution by Jack L. Cox, MD, MMM.