One Ohio radiology practice has landed an investment “in the range of $100 million” from kidney care giant Fresenius and is eyeing rapid expansion of its business model.
Dayton Interventional Radiology’s aim is to reduce out-of-pocket expenses by providing imaging-guided procedures at Medicaid reimbursement rates. And it’s caught the eye of the Germany-based dialysis provider, which has a network of 4,000 outpatient centers and 38% share of the U.S. market, the Dayton Business Journal reported Sunday.
With the investment from Fresenius, Dayton Interventional Radiology will look to expands its model across the Midwest eyeing markets including Cincinnati, Columbus and Toledo. But first, they’re building three or four new locations around the Dayton metro area.
"It’s super exciting, especially for a couple of private doctors who just had an idea and stuck with it," Kamal Morar, MD, MBA, co-founder and managing partner, told the journal. "These types of services need to be accessible to the most needy. And so, our local strategy is west side, north suburbs and rural communities. Lower cost structures can be very sustainable in these communities."
The report labeled the partnership as a “hub and spoke” model with DIR at the center. Morar’s eventual goal is to partner directly with large healthcare delivery networks. Hospital-based procedures can cost a mint, but as a small private enterprise, DIR is able to bend the cost curve and offer care at a “fraction of the price.”
“That's where you can get companies interested and wanting to invest, because they're looking for a return on their investment,” he added.
Read more from the Dayton Business Journal below:
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.