Loss of coverage leads to new group development for multiple sites

The Challenge

A radiology group serving two community hospitals within the same system ended their contract leaving no provider. The two hospitals recruited five radiologists and organized them under a system affiliated management company with plans to recruit five additional radiologists. After one year of unsuccessful recruitment and excessive reliance upon locum radiologists, the five radiologists were frustrated and ready to resign. A planned imaging center was postponed due to inconsistent radiology coverage. The hospitals requested RBS evaluate the situation and recommend options for solidifying a quality professional service.

The Approach

It is RBS’ preference to reinforce and renew existing relationships if possible. The RBS evaluation determined the quality of the core radiologists was excellent. However, due to the revolving door of inefficient locum tenens, the service level and turnaround times were substantially below acceptable standards. The medical staff sympathized with the radiologists; however they were unhappy with the service to the point they routinely sent outpatient referrals to outside competitors. As a result, the hospitals experienced an outflow of lucrative imaging studies, thereby reducing radiology revenue. In addition, expenses for the hospital increased due to the high cost of daily locum coverage. RBS helped quantify the negative financial impact on hospital revenue. It was also determined the five radiologists were never empowered to properly manage and run their practice. Working with hospital leadership, RBS determined these core radiologists required organization, accountability and transparency to be successful for the long term. For the short term, there was a need to address workflow, governance and personal responsibility.

The Solution

RBS recommended the hospitals help form a new group entity to be the exclusive provider. This new group would provide structured service levels with specific turnaround times, hours of coverage and other unique customer oriented services to re-capture outpatient business. In return the hospitals agreed to guarantee fair market value competitive income and support for the new group. This would allow the group to recruit, remain focused and succeed. Each radiologist joining the new group would become an immediate partner and owner of the corporation. RBS was able to work quickly with a motivated hospital administrative team to assure there was no lapse in coverage. Short term efforts to stabilize the imaging service during the transition dramatically improved turnaround time and service levels expected by the medical staff. This solution also allowed both hospitals to work with the group as a long term partner. It also provided both hospitals with a larger and more diverse set of sub-specialists to serve the patients.

The Result

All five of the core radiologists joined the new group and, in partnership with RBS, quickly recruited five additional specialty trained partners. The new group is recapturing previously lost outpatient business and working hard to promote their new practice with stellar quality and top-notch customer service. The improvement in service and quality was so dramatic one of the local outpatient competitors closed its doors within the first year. The radiologists are excited with their new group structure, partners and long-term stability. The hospitals are pleased with the quality and service levels attained by the new group. After a three year track record of working together, the group and hospitals plan to renew their contract for another three year term.

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