An affiliate of private equity-supported US Radiology Specialists has reached an in-network agreement with the nation’s largest commercial insurer.
Tucson, Arizona-based Radiology Ltd. was set to see its contract with UnitedHealthcare expire on Aug. 15. However, the two sides have now worked out a deal to grant health plan members continued access to the practice’s providers, a USRS spokesman confirmed on Monday.
“Radiology Ltd. has always worked with payers, including UnitedHealthcare, to establish rates that reflect the rising cost of providing high-quality imaging services,” practice President Bobby T. Kalb, MD, told Radiology Business. “We are pleased that we’ve recently reached an agreement with UnitedHealthcare on terms in the Tucson market, and we will continue to provide best-in-class, in-network care for patients who are UnitedHealthcare members.”
As of Tuesday, the deal was only a verbal agreement, which would span multiple years, according to UHC. The two sides were still working to finalize terms, with the health insurer planning to notify impacted plan members once the new contract is signed. UHC said it has extended the current contract end date to Oct. 1 to allow time to iron out the details. Beneficiaries will continue to have uninterrupted access to Radiology Ltd.'s services in the Tucson region during this time, while its physicians remain in network
Ahead of the agreement, multiple individuals wrote letters to the local newspaper, urging the Minnetonka, Minnesota-based insurer to reach a deal with the imaging group. Those included Fred Miller of Bisbee, Arizona, who contended that UHC was “simply using their size to extract the maximum dollars from this local company.” He asked fellow Arizonans to write UHC chief executive Brian Thompson, noting that he earns total compensation of nearly $9.9 million. In another letter, an individual identified as “Regula Case,” of Midtown, criticized Radiology Ltd. for its affiliation with USRS and private equity firm Welsh, Carson, Anderson & Stowe.
The practice was founded in 1933 and employs more than 400, including 45 radiologists. Radiology Ltd. also provides 24/7 coverage for two hospitals in southern Arizona and operates 11 accredited imaging centers, according to its website.
The agreement comes as radiology practices fight to remain in-network with health plans of choice in their service areas. Fellow private equity-backed provider group Envision Healthcare touted a similar agreement with Aetna in April, keeping its 500 radiologists in-network with the health plan. Phoenix-based Radiology Partners affiliate Sonoran Radiology announced an agreement with Blue Cross and Blue Shield of Arizona in May.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.