Nine years ago, when radiologist Kevin Barker, MD, joined the solo practice of Dr. Anson Cone, Community Radiology Associates (CRA) covered one imaging center and one rural hospital, and enjoyed high regard from referring physicians in the Texas Hill Country, a vast, 25-county region marked by rugged hills separating Austin from San Antonio.

The number of patients' requiring vital interventional procedures has risen sharply in the last decade and will continue to increase with an aging world population.

The final rule for the 2014 Medicare Physician Fee Schedule, which was released by the Centers for Medicare and Medicaid Services (CMS) in November, announced significant reductions in reimbursement for imaging-heavy specialties, and these reimbursement cuts will have major effects on future revenue streams for imaging facilities all over the country. 

As healthcare evolves, so too must healthcare consumers, providers, and payors. Healthcare consumers have increased access to coverage through the new health law, as well as through cooperative efforts between employers, providers, and payors to provide more affordable coverage. Many of the new plans offer affordable premiums that unfortunately, come with high deductibles.

At the most recent meeting of the Radiology Business Management Association in Charlotte, a new model for independent group practice collaboration was proposed to practices around the country. The model allows independent practices to succeed and is an alternative to the traditional radiology group alignment models of merger, acquisition, or outright takeover by a hospital or a private equity group. These collaborations can take different forms, but they share the same underlying goals: gaining the necessary resources to fulfill the needs of their primary clients—hospitals, payors and patients—inclusive of delivering meaningful information and decision support.

Radiology practices have long sought a solution to the consolidation occurring in their marketplaces, as well as the commoditization happening in their midst. The fundamental problem is delivering ever-higher levels of service and quality with diminished resources.

It is an article of faith for those who are active in the stock market that both bears and bulls can and do succeed and make money, as long as each approach is a decision based on a strategy. Bears are skeptical, cautious, hedging their bets against a rising tide that they see as illusory or unsustainable.

To achieve success in consolidating two radiology practices, it’s important that they are a “good fit.” But what determines a good fit?  While practices may be similar in size and may even have some structural similarities, no two practices are exactly alike.