Negotiation-Mediation leads to security and alignment

Although every scenario is different, most of the problems facing radiology groups are rooted in the recruiting and retention of physicians and declining financial reimbursement. The following example demonstrates how RBS uses its wide range of experiences in providing multidimensional solutions to radiology problems.

The Challenge

A well established radiology group served a medium sized community hospital for decades. The quality and service of the group was undisputed within the medical staff and administration. Several radiologists left due to retirement and relocation. Revenue had been declining due to increases in practice expenses and decreases in reimbursement. Volume continued to increase in parallel with national averages, however the revenue generated for radiologist salaries was not competitive nationally. The group required two additional FTE’s to provide adequate service for the hospital, but it had been unsuccessful with recruiting for two years. The group members were close to burnout and were actively looking for new jobs. The hospital recognized a crisis was looming and hired RBS to offer solutions.

The Approach

RBS conducted a comprehensive on-site evaluation involving administration, the medical staff, department personnel and the radiologists. RBS also performed a financial analysis and billing audit to determine the true financial status of the group. It was determined:

• The radiology group was superb in quality and offered exceptional service to the medical staff, although it required additional staffing
• All of the radiologists were highly respected clinicians
• The billing company performed well in regard to collections
• The volume generated in the hospital required two additional FTE radiologists in order to provided sufficient service
• The revenue generated was insufficient to recruit the needed physicians based on market standards

The Solution

RBS suggested the hospital negotiate a new Radiology Service Agreement offering financial assistance to the group. This would guarantee the physician’s income would meet national standards to allow for successful recruitment and retention of quality radiologists. The financial support would be tied to national benchmarks for service levels. All of the quality of care and “customer service” issues identified from the evaluation process would be addressed in a balanced Radiology Service Agreement.

The Result

With a new multi-year Radiology Service Agreement in hand, and a strong financial future, the radiology group was successful in quickly recruiting two FTE radiologists. Four years later, the group continues to be secure – and the Radiology Service Agreement has been renewed for a second three year term.

Our Successes