Radiology Business’ most-viewed stories for May 2024

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From the Editor??

Something’s got to give. Radiology providers are being beset by unrelenting market forces from all sides. Imaging volumes continue to climb, at least anecdotally. Reimbursement rates are shrinking, when adjusting for inflation, and provider groups are struggling to find the physicians and technologists they need to keep up with all of this. It’s probably partly why we are seeing new market entrants like Walmart stepping in, thinking they can show everyone else how it’s done (spoiler: they can’t). Hopefully, this month’s most-viewed stories can provide you with a few practice pearls to help navigate all of this. If not, at least maybe we’ll provide some water cooler fodder (is that still even a thing?) to get you through the week.??

A delay in the sale of multispecialty radiology provider Steward Medical Group to UnitedHealth prompted its hospital system owner to file for bankruptcy protection May 6. UHG’s OptumCare subsidiary recently reached a deal to?acquire?the Dallas-based physician practice. Part of the Steward hospital system, the doc group spans 450 practices and employs 1,700 providers including about?200 radiologists. Antitrust authorities plan to rigorously review the sale amid concerns about its impact on competition. Meanwhile, Steward claimed it cannot wait any longer, seeking relief through the courts. Delay in sale of 9-state multispecialty radiology provider spurs Chapter 11 bankruptcy filing ?

Hologic is recalling breast care devices after 71 reported patient injuries, according to an alert issued May 22. The FDA labeled this is a Class I recall, its most serious designation, with use of the products potentially causing “serious injuries or death.” The alert pertained to its BioZorb radiographic markers, implanted in soft tissue to indicate the site for radiation therapy or other procedures. In recent months, the FDA has received reports of adverse events including discomfort from feeling the marker in the breast, infection, pain, rash and other complications. There also is danger the devices could break through the skin of the nipple, move out of place or fail to resorb in a patient’s body. The FDA previously issued a warning in February, with the response now?shifting to a recall, which the agency identified as a “correction, not a product removal.” Hologic recalling breast care devices after 71 injuries, FDA says ?

Siemens Healthineers is investing $314 million to construct a new MRI manufacturing facility, which will employ more than 1,300 workers once completed, the company announced May 22. The facility is in North Oxfordshire, northwest of London, and will design and manufacture superconducting magnets used by providers worldwide. The site also will include a research and development hub focused on creating “innovative and sustainable” MRI technology. Siemens said this is the first major production site for its DryCool technology that drastically reduces the amount of helium required for magnetic resonance imaging. Siemens Healthineers investing $314M to build new MRI manufacturing facility ?

RadNet Inc. acquired nine imaging centers across two separate transactions in Q1, leaders revealed in a May 10 regulatory filing. The two small “tuck-in” acquisitions included Antelope Valley Imaging, which has three outpatient centers in Lancaster, California, and two more in Palmdale—all in north Los Angeles County. RadNet paid $3.53 million for the business and completed the deal Feb. 1. Meanwhile, the publicly traded, Los Angeles-based company also acquired Grossman Imaging Centers for a total of $10.5 million, according to the same filing. RadNet announced its quarterly earnings results on May 8, with double-digit growth across multiple modalities and record revenue of $432 million. RadNet acquires 9 imaging centers through 2 tuck-in transactions totaling $14M ?

Walmart’s experiment offering imaging at its superstores has failed as the retailer is now closing all clinic locations, leaders announced April 30. The company had hoped to eventually double the size of Walmart Health, rolling out centers with X-ray machines, Epic EHR integration and other services. However, the Bentonville, Arkansas, company has admitted defeat and will end the experiment five years after it started. “The challenging reimbursement environment and escalating operating costs create a lack of profitability that make the care business unsustainable for us at this time,” it said. Walmart first launched the effort in?2019, trying to further capitalize on the millions of visits logged each year. Walmart’s experiment offering imaging at its superstores fails as retailer closes all clinics ?

The radiologist shortage is forcing Michigan patients to face weeks-long delays for diagnostic imaging, according to a report published April 28. This has led to some individuals hitting online forums to express frustration about delayed test results, the Detroit News reported. Numerous hospitals are grappling with unfilled positions and exam backlogs. Corewell Health and Henry Ford estimated that radiology staffing is about 10% below optimal levels, but they’ve weathering the shortage by bolstering recruiting, adding more residency slots and offering work-from-home perks. Radiologist shortage leaves patients facing imaging delays at upward of 2 weeks in 1 state ?

The American College of Radiology last month asked for “swift congressional action” to address the inadequate supply of radiologists in the U.S. ACR voiced its concern in comments submitted to the Senate Finance Committee, which held an April?hearing ?on physician payment reform. The college highlighted the “continued downward spiral” of the Medicare Physician Fee Schedule, with annual cuts contributing to the deficit of available providers. By 2036, experts project a shortfall at upward of 86,000 physicians, ACR noted. “This is extremely concerning,” Executive VP Cynthia R. Moran said in a statement shared May 2. ACR urges ‘swift congressional action’ to increase the supply of radiologists ?

A Nebraska provider has joined a growing number of institutions refusing to accept Medicare Advantage, contending the privatized plans are “bad for patients” and taxpayers. Great Plains Health announced the decision May 16, with it set to take effect in 2025. The rural health system—which provides imaging at its main hospital and nearby outpatient center, employing?five radiologists—strives to “put the patient first.” But Medicare Advantage “does not align with that mission.” Great Plains cited concerns including access and affordability. Nearly 45% of hospitals are considering ditching MA while 16% have already done so,?according to?one estimate. Radiology provider joins growing number of institutions refusing to accept Medicare Advantage ?

A private equity-backed urology practice is partnering with experts in interventional radiology to launch a new IR-focused facility in the Midwest. Central Ohio Urology Group on May 18 announced the opening of its?Interventional Radiology Center?in Worthington, a northern suburb of Columbus. It’s also launching a “groundbreaking” initiative, offering minimally invasive procedures for men with enlarged prostates. To add this new service, Central Ohio Urology is working with Prostate Centers USA, a McLean, Virginia-based IR group that operates a network of locations across several states. Private equity-backed urology practice enters interventional radiology with new outpatient center ?

Members of the U.S. Senate on May 17 released a details on how Congress could reform the Medicare payment system for radiologists and other physicians. The white paper follows a recent Senate Finance Committee?hearing?exploring physician shortages, inadequate reimbursement and other challenges. Senators suggested reforms that would include creating more sustainable payment updates to ensure radiologists can continue owning practices, incentivizing docs to provide better care at lower costs, and rethinking how Medicare measures quality. Finance’s proposal comes following a 15-year?period?in which radiology has seen a 25% drop in reimbursement when adjusting for inflation. Senators release new details on how Congress could reform radiologist Medicare payment system ?

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