With seven of the country’s 20 most prominent radiology practices having completed business deals within the last 18 months, the field is witnessing more efforts to consolidate and conserve resources than perhaps ever before.
Like other speciality physicians, radiologists have in recent years been driven toward consolidation, Forbes reported, noting a trend the industry has been struggled with for some time. Experts have cited a fragmented market, shifting reimbursement models and an ever-increasing demand for imaging services as possible explanations, since smaller practices are now struggling to keep up with expensive technology at the rate it’s advancing.
Merging services allows radiology practices to cut overhead costs, access more funding for technology and appear more appealing to hospitals and payers.
“Radiology practices are enticing investors who see opportunity to grow the businesses organically and through acquisitions,” Reuters reported. “Additionally, government and commercial reimbursement rates for radiology services have remained relatively stable. More sellers are coming to the market as it becomes harder for smaller practices to keep up with advancing technologies and increasingly complex billing and coding requirements, and to compete with deep-pocketed marquee groups such as Radiology Partners and Envision Healthcare.”
Read Reuters’ full report, including stats about where certain groups stand, below.
After graduating from Indiana University-Bloomington with a bachelor’s in journalism, Anicka joined TriMed’s Chicago team in 2017 covering cardiology. Close to her heart is long-form journalism, Pilot G-2 pens, dark chocolate and her dog Harper Lee.