Radiology Business spoke with Health Care partner W. Kenneth Davis, Jr., about radiology practices considering what he described as "existential deals" to be acquired by investor-owned physician practice management companies (PPMCs), particularly in light of the COVID-19 pandemic. The article was featured in Radiology Business's e-newsletter and the Radiology Business Journal magazine. Maintaining his view as a PPMC agnostic, Ken suggested that practices look at the "level of investor involvement" as part of the decision-making process. He noted that there are two main categories of acquirers: "radiology-focused PPMCs run by radiologists who commonly work in partnership with finance firms" and "multispecialty PPMCs whose interests include but aren't exclusive to radiology."
Depending on practice size and complexity, Ken stated that often radiologists first "look at the infrastructure their practices need in order to grow — PACS, RIS, EHR, revenue cycle management functions — and ask themselves, 'Hey, are we really going to do this on our own? What's it going to cost? Do we truly want to spend millions of dollars on [technology], or are we just better off selling to a PPMC?'" He added that practices must weigh their openness to change. "No PPMC sits down with practice leaders and says, 'Doctors, we're buying your practice, and things are going to change in terms of control.' If you can't accept that change is inevitable, no matter which model you'd be following, then a deal probably isn't the best idea for your practice." Ken also noted that joint ventures with other radiology practices (perhaps even a merger) or membership in a multi-practice alliance could be solid alternatives for practices to consider if a PPMC is not a good fit. ("COVID or Not, Big Money is Buying Radiology Practices. Should Yours Be Selling?," April 29, 2020)