In the July 20 online edition of Capital Business, The Washington Post featured Progressive Radiology's Illinois expansion. By Thomas Heath.
Md.’s Progressive Radiology expands to Illinois
One of the largest radiologist-owned practices in the Washington area is getting bigger, expanding its practice to the Chicago area.
Progressive Radiology, which dates back to 1975, recently acquired five Illinois magnetic resonance imaging centers from MIDI.
The expansion is a big one. Progressive said it is expecting the number of MRI procedures to increase by 17 percent, and the number of facilities to increase by nearly a third.
“We think our business model, providing good doctors, advanced technology, a high level of service and good medicine, will lead to growth at these [Chicago] centers,” said Mark Monteferrante, a physician and managing partner and part-owner of Progressive. “We are not a mill.”
The acquisition is part of a growing trend in which physicians are becoming entrepreneurs, buying and running outpatient medical facilities formerly run by investors, who are fleeing parts of the sector. Progressive, which has 18 radiologists, most of whom are owners in the business, competes with Inova Health System, MedStar Health and Johns Hopkins Hospital.
Progressive is also using the acquisition to diversify its revenue stream beyond Maryland to a state such as Illinois, where reimbursement rates for Medicare and workers’ compensation are higher.
“The economic environment [in Illinois] is more favorable compared with Maryland,” Monteferrante said. “Maryland is a much more liberal state that puts a lot more pressure on the docs.”
Progressive’s acquisition of a Midwest company came about, in part, because Progressive’s chief executive, Adam Starr, used to work at MIDI and has kept in contact with them.
The economic environment in medicine is becoming more difficult every year,” Monteferrante said. “That’s leading to a lot of consolidation. People are now trying to do more with less.”Privately held Progressive has 11 sites in the Washington area and employs 100 locally. One of its centers is in the Foxhall area of the District, and 10 are in Maryland, making it the second-largest outpatient provider in Maryland.
To view the posted article "Click Here" .
To learn more about Progressive Radiology visit www.progressiveradiology.net