RadNet seeking creative ways to address ‘tight labor market’ plaguing the imaging industry
Imaging center operator RadNet is seeking creative ways to address a “tight labor market” plaguing the industry, company officials said during a corporate earnings call on Monday.
Possible solutions could include establishing stronger relationships with schools that produce rad techs, offering special incentives to acquire talent, and implementing new protocols and products to bolster efficiency. The Los Angeles-based imaging giant logged a solid third quarter that included earnings increasing more than 19% compared to Q3 of 2020 while its margin leapt from 0.7% to 16.4%. Revenue landed at nearly $333 million, a 14% year-over-year uptick.
However, ongoing staffing shortages present a challenge RadNet will need to address through the tail end of this year and into 2022. CEO Howard Berger, MD, said workforce shortfalls have restricted RadNet’s ability to expand hours in certain locations to work through patient backlogs and increased the cost of recruiting and retaining staff.
“This is not just a temporary issue that we face, much like virtually everybody else in business today,” Berger told investors Nov. 8. “Staffing has become a limitation on your ability to generate revenue. But as opposed to perhaps other businesses, I think we have more effective ways of helping create some long-term solutions for this.”
Technology is a key piece of the puzzle, he noted. Cloud computing will allow radiologists to access prior imaging on-demand, avoiding the need to create cumbersome special systems for fetching exams that drag down productivity. Plus, new tools from imaging manufacturers can reduce scan times and improve throughput on existing equipment without expanding hours. Hiring radiologists is also a challenge and the firm hopes these changes could eventually bolster efficiency by upward of 25%, allowing docs to handle more volume.
RadNet is looking “very strongly” into acquiring or aligning with vocational schools that produce technologists and frontline “patient service representatives” used at its facilities. Online scheduling and more efficient calling centers will also help relieve hiring headaches, Berger added.
“All of the people that we need to staff our centers are in short supply, and we believe this is a long-term trend that all of these efforts on our part will need to be effective in addressing,” Berger told investors. “But in the long-term, I think will help improve not only our revenue, but certainly improve our margins.”
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.