Radiology Alignment: Common Structures and the Value of Radiologists’ Services

Published by ImagingBiz Whether given incentives by the continued cuts in reimbursement levels or by the desire to monetize an operating asset, radiologists in the market continue to sell their imaging centers to buyers of many kinds—for-profit imaging-center owner/operators, for-profit hospitals/health systems, and not-for-profit hospitals/health systems, among others. Although the sale of the imaging center transfers all (or a portion of) the ownership to the buyer, there are still opportunities for radiologists to remain involved in the business. Specifically, many radiologists continue to provide exam interpretations and/or specific management services. The relationship between the newly purchased imaging center and the radiologist is generally consummated through a professional-services agreement. Compensation paid to the radiologist often stands out as one of the most significant factors of any professional-services agreement. To mitigate regulatory-compliance risk (involving the federal Stark law; anti-kickback statutes; or, for organizations exempt from federal tax, IRS regulations) and to validate the fairness of the compensation terms, the services of an independent valuation company can be procured to assess whether the compensation terms of a professional-services agreement are consistent with fair market value. Click to continue to the full article.