Hospital system buys one of largest Rads/Rad Onc groups in CA

[Gfunk6]

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This news is slightly dated, but still relevant. One of the oldest multi-specialty Rad Onc groups in California (ROC, aka. Radiologic Associates of Sacramento) has been purchased by Sutter Hospital System.

Given the history, size, and strength of the ROC - this is a concerning development for physician independence.

Source: http://www.sacbee.com/2013/11/19/5926766/sutter-buys-radiological-associates.html

I particularly enjoyed the last quote in the article:

RAS is laying off 24 employees next month, according to filings with the state Employment Development Department. The layoffs aren’t connected to the Sutter deal, said RAS spokeswoman Kelly Balaam.

Of course they are not related 😀

 

[medgator]

Even without the new law, providers are under increasing pressure to merge in order to save money. “That’s not easy to do when you’re operating on a small scale,” said Aileen Wetzel, CEO of the Sierra Sacramento Valley Medical Society. “Many of the physicians who are in small to medium groups are looking for alternatives. There’s a growing trend ... towards physicians who are combining their practices, consolidating.”

RAS is laying off 24 employees next month, according to filings with the state Employment Development Department. The layoffs aren’t connected to the Sutter deal, said RAS spokeswoman Kelly Balaam.


Read more here: http://www.sacbee.com/2013/11/19/5926766/sutter-buys-radiological-associates.html#storylink=cpy

The irony here is that merging/consolidation of practices actually doesn't lead to lower costs. It will lower competition, and allows more services to be controlled/delivered by hospitals (which of course are allowed to charge MORE for things like radiation therapy, imaging, cardiac procedures etc).