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Major radiology group in NY asks insurers for pay bump as visits fall by 60%

  • 1.  Major radiology group in NY asks insurers for pay bump as visits fall by 60%

    Posted 05-07-2020 11:00

    Yes, we are all suffering, but...

    My greatest concern is the safety of our MRI techs.   They must 'touch' each patient and are at greatest risk.

    Patient needs always come first and we must stay open as our reason for being is helping the sick safely and to the greatest extent possible.

    Like all of you, I've spent a small fortune from day one to provide proper PPE to all my staff and to those patients without PPE when they arrive, but how do we properly respect these additional needs of those among us who are most vulnerable?

    Article follows:

    Zwanger-Pesiri Radiology has seen a drastic decline in patient volume and is asking some insurers to increase its payments by 20% to offset its higher costs related to Covid-19.

    The radiology group, which has 33 locations on Long Island and in New York City, is treating about 60% fewer patients now than before the pandemic, with a marked drop in the number of lucrative MRIs and CT scans it performs. The group saw business drop by as much as 75% last month, which is when it started seeking higher payments from insurers, said Dr. Steven Mendelsohn, Zwanger's CEO.

    Some of that volume has been replaced by lower-cost chest X-rays, which don't cover the higher costs of doing business during the pandemic, he said.

    The Centers for Medicare and Medicaid Services increased payments by 20% for Covid-19 hospitalizations billed to Medicare, but other providers haven't received any bump, Mendelsohn said.

    "CMS has not recognized it is more expensive for us in the outpatient sector," he said.

    The practice is now spending more to equip its workers with protective equipment and clean waiting areas and exam rooms.

    It has seen a drop in the imaging used to inform doctors treating patients for cancer, cardiovascular conditions and joint and back pain, Mendelsohn said. There are fewer trauma and sports injuries as well.

    "Because patients are not seeing their doctors, the doctors aren't ordering MRIs or CT scans," Mendelsohn said. "The cost to insurance companies has dramatically decreased because no one is spending money [on health care]. Doctors and hospitals seeing these patients should certainly be seeing an increase in their rates."

    The state Health Plan Association said insurers are working with providers on a case-by-case basis to handle requests for pay increases.

    The Medical Society of the State of New York said earlier this week that Empire BlueCross BlueShield, UnitedHealth Group and CDPHP had been paying higher rates to some providers.

    Zwanger has designated nine offices to serve only Covid-19 patients in Deer Park, Freeport, Great Neck, Hicksville, Huntington, Lawrence, Port Jefferson Station and Smithtown on Long Island and Elmhurst in Queens. An additional six offices are treating a mix of Covid and non-Covid patients, with separate entrances and waiting areas.

    Zwanger furloughed about 650 of its 1,400 employees earlier this year as volume dropped and is calling them back to work as patients begin to stream in. Mendelsohn said he's hopeful permanent layoffs won't be necessary.

    The practice, which dates back to 1953, has grown into one of the largest radiology chains in the region in the past decade, growing from eight offices in 2012 to its current 33 sites. Its locations are mostly on Long Island, with eight spread across Brooklyn, the Bronx, Manhattan and Queens. It has annual revenue of more than $200 million.

    Its competitors include radiology groups run by Northwell Health and NYU Langone as well as Lenox Hill Radiology, a group affiliated with the national chain RadNet.

    Zwanger's size and the debt it needed to take on to expand disqualified it from several emergency relief programs. Asked if the expansion was too much, too fast, Mendelsohn said he didn't think it was a factor in the practice's need for cash and instead pointed to stagnant reimbursement rates.

    There are signs in patients' scans that the pandemic will linger. Zwanger identifies 100 to 120 patients a day with Covid-related pneumonia.

    "Even though hospitalizations and deaths have decreased, we're seeing an increase in pneumonia in the outpatient walking-and-talking population," Mendelsohn said. "This tells me it will be a slow process even as Cuomo opens up businesses.



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    William Kisse
    COO
    Washington Open MRI, Inc.
    Rockville, MD
    bill@womri.com
    (301) 424-4888
    https://www.linkedin.com/in/billkisse/
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