Why one of the country’s oldest continuing radiology practices decided to close
A Pennsylvania radiology group that described itself as “one of the oldest continuing practices in the United States” is sharing insight into why it closed.
Southeast Radiology Ltd., in the Philadelphia suburb of Upland, ceased operations at the end of June. The 24-physician practice recently informed Crozer Health about the decision, forcing the hospital group to find new coverage beginning July 1, the Philadelphia Tribune reported June 20.
The practice did not respond to the news outlet’s request for comment. However, Southeast Radiology shared a statement with Radiology Business on July 11.
"Our practice was a long-standing group that operated successfully for many decades, serving our community while attracting many high-quality radiologists in the competitive Philadelphia market,” said Kurt Muetterties, MD, president of Southeast Radiology Ltd. “However, over the past couple of years we faced significant challenges, including a shortage of available radiology physicians and the increased competition for these limited resources, considerable instability and market disruption in our local region, and our reliance on a single health system that has been experiencing severe financial difficulties and a potential sale. The convergence of these major market forces led to our group's inability to retain existing partners or attract new physicians.”
Muetterties declined to be interviewed or comment further. SRL was a member of independent practice coalition Strategic Radiology, which also would not comment on the closure. Four-hospital Crozer Health, also based in Delaware County, did not respond to requests for comment on Friday.
A long history
Abraham Sharpe, MD, first founded Sharpe Associates shortly after World War I ended in 1918. His interest in the specialty was piqued by his experiences during the war, according to the organization’s website. The practice later became Southeast Radiology Ltd. in 1983 and has serviced Crozer Health’s imaging needs during the 40 years that followed.
SRL joined Strategic Radiology in September 2015 but was recently removed from the practice coalition’s website after news of the closure.
“The group is widely recognized as a market leader within the greater Philadelphia region and has consistently demonstrated the kind of commitment to clinical quality and safety that is the cornerstone of the SR organization’s patient care delivery model,” SR CEO Arl Van Moore Jr, MD, said at the time.
Southeast Radiology provided community-based services and subspecialty imaging interpretations across several locations. Along with Muetterties, its leadership team included Chairman John Hiehle, MD, and Practice Administrator Matthew Brennan, according to an archived version of Strategic Radiology’s website from May. Altogether, the practice employed 24 physicians, serving three hospitals and two outpatient centers and performing 321,300 procedures per year.
The radiology group also operated an interventional radiology center in Glen Mills, Pennsylvania, which shuttered on June 13.
“It is with heavy hearts that we must share some difficult news with you. After 18 years of dedicated service to our community, we regret to inform you that the Vein Center at Brinton Lake will be closing its doors on June 13, 2024,” Southeast Radiology Ltd. said in a June 7 announcement. “Since our inception, it has been our privilege to provide quality specialty care to patients suffering from venous diseases, with a particular focus on venous insufficiency. Your trust and confidence in our practice have been the driving force behind our commitment to excellence in healthcare. However, the landscape of medical practice has shifted significantly in recent years. We have encountered ongoing financial pressures and declining reimbursements compounded by a workforce shortage. Despite our best efforts to navigate these challenges, we find ourselves facing the difficult reality of closure. Please know that this decision was not made lightly, and it is with profound sadness that we must bid farewell to our cherished patients.”
In 2014, local news publication Main Line Today named both Muetterties and Chad Brecher, MD, “Health Care Heroes” for their volunteer work in the Dominican Republic, Honduras and Mexico. The two radiologists would often see 150 patients per week during their trips.
“In one village, we set up in a giant church, and there was a huge line reaching through the building and down the street,” Muetterties told the publication. “Everyone waited patiently—sometimes all day—just to get a few minutes with a doctor.”
Trouble at Crozer
The practice closure comes as Crozer Health has faced its own financial troubles in recent years. Los Angeles-based private equity firm Prospect Medical Holdings acquired the hospital system for $300 million in 2016 with plans to make significant capital investments—modernizing facilities, attracting more patients and expanding services.
But the new owners have faced a series of challenges since then. Amid the COVID-19 pandemic, Prospect Medical Holdings grappled with rising costs, staffing shortages and supply chain issues. It also suffered a cyberattack last year, with about 16 Prospect hospitals experiencing IT outages and disruptions.
ChristianaCare Health System in 2022 announced its intent to acquire the Crozer Health hospitals. But the deal fell through, and its letter of intent was revoked.
“We worked hard to reach an agreement for the purchase of Crozer Health, and we are disappointed in this outcome,” ChristianaCare Chief Strategy Officer and General Counsel Jennifer Schwartz said at the time.
The sale process was halted after Crozer had laid off staff and weighed closing several wards and services, local media reported. At one point, its CEO detailed plans to shutter paramedic services, which were operating at a $336,000 annual loss, requiring a funding infusion. Further complicating the ChristianaCare deal, Prospect Medical Holdings sold the properties out from under Crozer hospitals to Medical Properties Trust. This left the hospital as a potentially less attractive acquisition target, paying between $30 million and $35 million in annual rent, according to the Philadelphia Inquirer.
Prospect has been trying to sell its Crozer assets for years now. It engaged in a court-approved agreement to sell the health system to a nonprofit after it had faced a “wave of litigation” over its decision to close the Delaware County Memorial Hospital, WHYY News reported in its story about Southeast Radiology’s closure.
WHYY noted that the deal was reached after Crozer had ended key healthcare services, laid off staff and failed to pay vendors.
“We are pleased that the attorney general’s office is requiring that any buyer of Prospect Crozer must be a nonprofit,” Frances Sheehan, president of the Foundation for Delaware County said in February. “Now that the stipulation is signed, we would expect that there are no more hurdles remaining in the way of Prospect issuing a request for proposals seeking reputable nonprofit suitors that can work with the excellent staff there to rebuild a desperately needed health system.”
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.