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Jamie Hammond, Client Relations
From 1 July 2027, subject to the passage of legislation, metropolitan radiology practices will no longer need a licensed MRI machine to attract a Medicare rebate.1 To bill Medicare for an MRI scan from that date, a practice will still need to:
In brief: demand for rebated MRI scans is expected to increase, and the practices eligible and operating on the day are the ones positioned to absorb the increased demand it and build referrer relationships early.
Since the 2018 Senate inquiry into diagnostic imaging, the government has committed $69.8 million to the change in Medicare rebate-eligibility for MRI machines in metropolitan areas.3 The 2018 inquiry and the reform’s costing suggest that the government expects both a general increase in MRI demand and an increase in demand for rebated scans, as more practices become Medicare-eligible.
This increased demand will not be evenly distributed, as rebate eligibility drives patient choice more strongly than other factors like convenience.
Practices that do not meet the requirements for Medicare-eligibility may find the disadvantage sharper than it is today, because their patients will have more eligible alternatives close by. A clinic that cannot offer a rebate currently competes against a limited field of licensed practices. However, from July 2027 it competes against every comprehensive practice in its catchment.
For those that do qualify, medicare-eligibility stops being a differentiator. Instead, referrers will choose on report quality, turnaround, radiologist accessibility and appointment availability instead, and practices in full operation when that change comes will be the ones building those relationships while competitors are still under construction.
Space and Equipment:
The Australasian Health Facility Guidelines provide indicative room areas for imaging units.6 For the four modalities a comprehensive practice needs, the guidelines schedule:
Add the computer rooms each of CT and MRI requires, an MRI induction and recovery room, and the guidelines’ 35% circulation allowance, and the clinical core alone approaches 270m² before reception, waiting, change cubicles, reporting or staff areas.
If your current site or space is a concern, engaging a specialist radiology design and construction partner who can maximise your footprint without compromising staff and patient flow, is paramount. Interite designed and delivered Garran Medical Imaging’s Turner clinic with seven imaging modalities in a 460m² footprint: PET CT and Theranostics, MRI, Weight Bearing CT, X-ray, ultrasound and 3D mammography, alongside reporting rooms, consult spaces and back-of-house support.7 GMI’s case study is a great example of how clever design can compensate for a small space.
Base Building Considerations:
The slab must carry the magnet, which is a primary design consideration for radiology equipment. That equipment has to get in and eventually out, so a ground floor position or a lift capable of transporting heavy, bulky equipment can be advantageous. What surrounds the MRI also matters: positioning it away from substations and lift wells to minimises shielding cost, and being aware that warn that lifts, cars in car parks and nearby construction can interfere with the magnet. In a tenancy, that makes the floors above and below you part of your assessment.6
Ceiling and services zones, three-phase power and air conditioning capacity need checking too, though these are usually resolvable. The best way to know if your site is suitable for an MRI or multi-modality radiology fitout, is to engage a specialist builder early. Early feasibility assessments, test fits and preliminary costing can quickly alleviate or surface concerns which affect the design, construction programme and cost of a radiology fitout.
The fitout process for a radiology practice is largely dependant on each unique site location and surrounding occupancies, equipment integration, and design complexity. For example, Interite’s project for Garran Medical Imaging, a 460m2, seven modality fitout, was constructed while adjacent tenancies were unoccupied. Which contributed to an expedited 12.5 Week construction programme.
Whereas the refurbishment of Epworth Medical Imaging, within a live operational hospital, required careful segmentation across across 6 stages. During the 21 week programme, we scheduled works during off-peak times or after hours, ensuring safety and minimal disruption to surrounding tenancies, while allowing critical hospital functions to continue as normal.
As a broad benchmark, construction programmes for radiology fitouts typically range from 12 weeks to 24 weeks, dependant on scope complexity.
We find that most of the decisions that determine whether a practice opens on time and on budget are made before a construction contract is signed. They are inexpensive to resolve early and costly to revisit later.
Interite works through them at no cost, with no obligation attached and before we are engaged. We provide:
Most practices come to us with a site already identified, however we also assist clients in early site selection and feasibility to ensure they secure the right fit for their practice. Additionally, if financing and equipment selections are still open, we have a network of trusted partners who can assist with funding and equipment integrations. Four decades of healthcare projects means we know which financiers are comfortable with imaging capital, and which equipment suppliers deliver on their lead times.
Whether you are a radiologist opening your first practice, an established group expanding to more locations, or a clinic adding a modality, the useful next step is the same: find out what your site can actually accommodate, what it will cost, and how long it will take.
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