CHCP Report: DSOs Rapidly Retained by Practices and Hospitals to cut Costs and Assist in Increasing Diagnostic Testing Profitability

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As overhead costs and reimbursement declines have become a deepening concern, significant inefficiency is often recognized within the in-office diagnostic components of medical practices. According to a recent report by Choice Health Care Partners, LLC (CHCP), a national physician practice advisory group, "DSOs" are being rapidly retained by practices and hospitals to cut costs, and assist in increasing diagnostic testing profitability.

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“The days of practices overpaying for anything associated with the conduction of diagnostic services must end here and now”

As overhead costs have become a deepening concern, significant inefficiency is often recognized within the in-office diagnostic components of medical practices. Diagnostics service organizations (DSOs) which use best practices and economies of scale to optimize the efficiency standards of in-office diagnostics such as nuclear labs will continue to increase their U.S. market share over the next few years, according to a recent report by Choice Health Care Partners (CHCP), a national physician practice advisory group. DSOs are being as reimbursement continues to decline. Typically [DSOs] such as those aimed at Nuclear Cardiology assume the responsibilities of an office’s existing nuclear lab - such as technologist payroll, isotope costs, physicist(s) services, camera maintenance fees, and licensing – all at a greatly reduced flat per test fee. These types of “in-sourcing” models assure practices that there diagnostic labs operate at the best possible standards and operating efficiencies.

The report by (CHCP)--which offers a growth forecast for each market--found that as practices and facilities remain under pressure to cut costs and as reimbursement cuts impact profits, facilities are moving away from traditional past structures in favor of DSOs which can add up to 40 percent to testing revenues. “Not only can a quality DSO dramatically improve a practice’s profitability and overall bottom line, but the added convenience of having a trusted source can be directly responsible for dealing with the many tedious, ongoing details (personnel, regulatory and otherwise) of the nuclear lab…are priceless,” says Avi E. Soffer, CEO of University Nuclear and Diagnostics, one of the nation’s leading diagnostics service organizations. “The days of practices overpaying for anything associated with the conduction of diagnostic services must end here and now,” urges Soffer.

The CHCP report also suggests that in addition to projected growth, this market will also witness further consolidation as bigger DSO’s, such as University, will continue to complete acquisitions of complementary organizations such as nuclear camera service companies (in June 2010 University completed its acquisition of the service organization ProtectionPlus™), and add other modalities such as PET, Echo and EECP -- in order to offer comprehensive diagnostics options for clientele. Soffer feels that DSOs should feel a tremendous sense of responsibility and obligation in providing cost cutting assistance to physician practices nationwide, summarizing that, “There is no question of the need to address the issues practices are facing, and that DSOs present a terrific solution. It is now a matter of that need being served, swiftly, efficiently and professionally – all while maintaining the practice and their patients as top priority.”

About Choice Health Care Partners L.L.C
Choice Health Care Partners L.L.C (CHCP), under direction of CEO Mr. Kevin Fine -among the most respected and proven healthcare executives in the nation – examines the specific needs of prospective clients, develops and implements a business process improvement plan so that medical practices can benefit by working “smarter, not harder.” Experts at navigating the maze of managed care, Medicare guidelines, and human resources as well as the intricacies of contract negotiations, capital resources, IT solutions has spawned growth in practices’ looking to obtain CHCP’s services for medicine’s business side. Choice Health Care Partners, can be reached at or (305) 562-4417.    

About University Nuclear and Diagnostics (UND)
University Nuclear and Diagnostics (UND) is the nation’s leading DSO, offering solutions for physician practices and hospitals looking to reduce costs and increase revenues associated with diagnostic testing. Utilizing operational efficiencies to dramatically reduce costs per test - UND specializes in making nuclear medicine more profitable for practices. Among UND's group of companies includes the recent acquisition of UNDProtectionPlus™, a nuclear camera repair organization offering service and warranty agreements at 40% less than (OEM) manufacturer rates. In business since 1998, UND has satisfied physician-clients across the US and has recently been referred to by the medical trade press as "the go to solution in 2010" for combating the current reimbursement rate cuts. Visit for free use of UND’s assessment calculator indicating a practice's current cost per test as well as total cost savings. Or for more information contact Ms. Alex De Renzo (Director of Operations) at 877-5-DIAGNOSTICS, 954-888-1195.


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