The Challenge

A 30 year old, established radiology group has served a medium sized community hospital for decades. The quality and service of the group was undisputed within the medical staff and administration. The group lost several physicians 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 income was not competitive nationally due to the shortage of physicians. The group required two additional FTE’s to adequately service the hospital, but it had been recruiting unsuccessfully for two years. The current 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 full on-site evaluation meeting with administration, medical staff, department personnel and the radiologists. RBS also performed a financial analysis and billing audit to determine true financial status of the group. It was determined that

• The radiology group was superb in quality and offered exceptional service to the medical staff.
• All the physicians were highly respected.
• The billing company performed well in regard to collections.
• The volume generated in the hospital required two additional FTE radiologists.
• The revenue generated was insufficient to recruit the needed physicians in today’s market.

The Solution

RBS suggested the hospital negotiate a new Radiology Service Agreement with the group offering financial assistance. This would guarantee the physician’s income packages meet national standards to allow for successful recruitment. The assistance would be tied to benchmark service levels. All problem areas identified in the evaluation would be addressed in the agreements.

The Result

With a new multi-year agreement in hand and a strong financial future the radiology group quickly recruited two FTE radiologists.