Modesto radiologists laying off about 20 workers

Billing, collections will be done by Fresno firm

By BEN van der MEER
bvandermeer@modbee.com

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About 20 employees at Modesto Radiology Imaging will be laid off in the next five to six months, after the company switches its in-house billing and collection services to a company in Fresno.

The move affects longtime and relatively new employees, whose positions would be duplicative after the new company, McKesson, takes over billing and collections.

Mark Moore, Modesto Radiology's chief financial and operating officer, said his company is looking at ways to save money because of reimbursement cuts from Medicare and other public health providers.

"We're looking for ways, like all businesses, to be as efficient as possible," Moore said.

In 2006, he said, Medicare reduced its reimbursements for radiology imaging by 10 percent to 15 percent, and is poised to reduce those rates by another 10 percent at the start of the new fiscal year July 1.

Medi-Cal, a state-run health care provider for the poor, also will reduce reimbursements for imaging by 10 percent July 1, Moore said.

"Medicare continues to try to balance their budget, and they're focused on imaging as a way to do that," Moore said.

Modesto Radiology informed the employees Friday, Moore said. The company has about 150 employees.

McKesson, a national company, handles billings and collections for radiology companies across the Western United States from its Fresno office, Moore said.

Modesto Radiology opened in 2000, as a joint effort by members of the Modesto Radiological Medical Group.

The main imaging center on McHenry Avenue handles imaging for such techniques as magnetic- resonance imaging, digital X-rays and computed tomography (CT) scans.

To comment, click on the link with this story at www.modbee.com. Bee staff writer Ben van der Meer can be reached at bvandermeer@modbee.com or 578-2331.