Radiology practice reaches in-network agreement with UnitedHealthcare 9 months after terminating contract
A 60-physician radiology practice has reached an in-network agreement with UnitedHealthcare about nine months after publicly announcing it had terminated their contract.
Scottsdale, Arizona-based Southwest Diagnostic Imaging shared the breakthrough on Monday, restoring access for patients covered by UHC’s commercial and Medicare Advantage plans effective May 1. The practice previously announced in July that it had reached an “impasse” in its negotiations with the nation’s largest commercial insurer, leaving its 16 imaging centers out of network.
“We are delighted to have reached an agreement that prioritizes patient access to individualized care,” Michael Douglas, MBA, CEO of Southwest Diagnostic Imaging, which does business as SMIL, said in a statement April 14. “This new multiyear agreement allows patients with UnitedHealthcare to receive the best, most advanced, and safest medical imaging experience available.”
UHC, part of the larger Minnetonka, Minnesota-based UnitedHealth Group, did not immediately respond to a request for comment Monday. The insurer had claimed last year that SMIL was seeking a more than 30% price hike over three years, including 20% in the first. The practice had countered that it was facing rising costs and needed rate increases to fund initiatives related to patient safety, experience and quality. SMIL said in August that it had not received a rate increase from UnitedHealthcare since 2021, which was 1%.
Southwest Medical Imaging was formerly an affiliate of Radiology Partners, joining as a partner in late 2017. However, the practice transitioned to an RP client in 2022, with the industry giant providing interpretation services to SMIL’s imaging centers.
Gavin Slethaug, MD—a partner with Southwest Medical Imaging since 2001 and RP’s associate chief medical officer—discussed private equity’s role in medical imaging via a video posted last year.