CTS screening can be profitable
December 1, 1997 3 minutes read
CTS screening can be profitable
Offering this service can also bring in new clients
Screening for carpal tunnel syndrome (CTS) can be a highly profitable addition to an occupational health program, generating direct income from the screening and serving as an entry point to employers with many other occupational health needs.
There currently is very little market penetration for nerve conduction studies, so there is a great opportunity for programs addressing the need in their communities, explains Ronald C. Bingham, MD, president of IPS Physician Services, an occupational health provider in Jackson, TN. He estimates that the market for nerve conduction studies is only about 10% saturated across the country, meaning that 90% of employers who would use the service do not have it available to them. And even with the 10% that are offered the service through local occupational health providers, the quality is very low, he says.
"So there is a tremendous opportunity for occupational health programs that provide high-quality screening services," Bingham says. "I definitely would recommend this as something to get involved in."
Employer acceptance high
The service is an especially nice addition to a program’s offerings because it is so readily received by employers. The concept of screening workers for CTS can be grasped easily by lay administrators, and they can quickly see the savings that would accumulate by avoiding even a few CTS cases. Employers know they pay for a lot of CTS cases that were not really caused at their work sites, so they eagerly embrace the idea of screening.
The potential volume of business for CTS screening is large, Bingham says. In addition to the usually enthusiastic response by the employer, the Americans with Disabilities Act (ADA) compels the employer to send all or nearly all conditional hires for the screening. The ADA makes it improper to single out certain employees for the test. It may be ADA-compliant to send only workers in certain jobs or certain departments, but Bingham says most employers play it safe by sending nearly everyone for the test.
"Even if the job doesn’t put a lot of stress on the hands, it’s still good to have a baseline measurement so there is no chance of claiming the job caused CTS that existed before you hired that person," he says.
One of the best parts of offering CTS screening is that can lead to other business with the same employers. Any service that gets your foot in the door is good for your occupational health program because it allows you to offer your entire range of services to someone whose attention you already have. CTS screening can be very persuasive in getting otherwise resistant employers to open the door.
The financial return on the initial investment for CTS screening can be good, Bingham says. An occupational health program would have to invest in the necessary electronic equipment, costing about $18,000, plus extensive training for staff that may cost about $12,000. So a total investment of about $30,000 will get your CTS screening program up and running.
The cost of the screening will vary according to your own fee structure and the individual arrangements you make with employers, but Bingham notes his own program charges from $50 to $75 per test.
That means your initial investment of $30,000 would be recouped, in a simple sense at least, after your first 400 screenings at $75 each. And that does not take into consideration the income generated by other services you offer to the same clients when they seek CTS screening.
Screening for CTS takes only about 10 minutes for the nerve conduction study, but the worker also must fill out a lengthy questionnaire designed to elicit any symptoms that would contribute to a CTS diagnosis.
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