Radiology Partners affiliate ARA Diagnostic Imaging reaches in-network deal with UnitedHealthcare

ARA Diagnostic Imaging—the Austin, Texas, affiliate of the country’s largest radiology practice—has reached a deal to restore patients’ in-network status with UnitedHealthcare. 

Founded in 1954, “Austin Radiological Association” is a leading Central Texas provider servicing 24 hospitals and operating 17 outpatient imaging centers. ARA and the country’s largest commercial insurer previously had a “longstanding” relationship spanning almost two decades. But they failed to reach an agreement during recent negotiations, knocking the practice out of United’s network since April 2023. 

However, the two have now reached a deal nearly two years later, restoring patient access as of Jan. 1. 

“The radiology services we provide are central to early detection and disease management, making it critical for our community to have access to quality radiology care,” Gregory F. Connor, MD, ARA’s practice president, said in a statement shared Tuesday. “We appreciate the United leadership team for recognizing the importance of providing in-network access to high-quality radiological care for its members.”

UHC did not immediately respond to a Radiology Business request for comment late Tuesday. Based in Minnetonka, Minnesota, and part of the larger UnitedHealth Group, the payer has waged war against hospitals and physician practices in recent years. This included suing Rad Partners in April 2023 in a failed attempt to claw back alleged overpayments from the El Segundo, California-based imaging group. UHC also knocked Southwest Medical Imaging from its network in July where it has remained since. 

ARA said the new “long-term agreement” applies to commercial plans and Medicare Advantage products. Connor and colleagues believe the pact “makes clear the strong collaboration that will be in place moving forward” between the two companies. ARA employs a total of 110 radiologists working across numerous subspecialties. 

Backed by Whistler Capital Partners and New Enterprise Associates, Rad Partners acquired Austin Radiological Association alongside Las Vegas-based Desert Radiology in 2019. The practice funded a portion of the transactions with $365 million of incremental first-lien debt, S&P Global Ratings reported at the time. Rad Partners serves about 3,400 hospitals and other healthcare facilities through its owned and affiliated practices, employing over 3,500 radiologists.

CEO Rich Whitney, MBA, shared news of the UHC agreement on social media Tuesday, calling it “a great step forward for our patients and UnitedHealthcare members.” 

At the time the contract ended in 2023, ARA had said the previous rate paid by United “does not allow our practice to recruit well-trained radiologists and provide innovative care improvements.” UHC, meanwhile, had claimed the practice was seeking a 34% price hike over five years, which would “increase healthcare costs by nearly $8 million.”