Diagnostic Imaging of Salem is closing its doors for good on January 26, which will result in 34 employees being laid off. The company conducts X-rays, MRIs, digital mammograms, and other healthcare scanning services.
The employees were made aware of the business decision on January 2. The 34 employees who are set to be laid off include administrative support staff and technologists who conduct various health-related tests.
Diagnostic Imaging of Salem is part of a larger company, Diagnostic Imaging Associates, which currently has 43 employees. After the layoffs are complete, there will only be nine employees still working at Diagnostic Imaging Associates, including six radiologists (five of whom are owners of the company). An additional three employees will be kept on the payroll in order to complete necessary business tasks.
The center will close its doors, but Diagnostic Imaging Associates will continue to serve its contractual obligations at hospitals. There are currently two contracts in place, with Samaritan Albany General Hospital and Legacy Silverton Medical Center. Working on those contracts instead of operating its own location means that there will be lower overhead costs.
Why Is Diagnostic Imaging Closing Its Doors?
The issue for Diagnostic Imaging is its financials. Specifically, there has been a slowdown in the revenue coming from the healthcare reimbursements program.
Both government and insurance healthcare companies pay their patients medical expenses through reimbursements, which are given to the center when all the paperwork is complete. Over the past few years, there has been a decline in the reimbursements that have been paid from Medicaid and Medicare.
Diagnostic Imaging of Salem had also lowered its prices. There have also been more claims not being paid, which means the company has been incurring higher financial costs.
Conclusion on Diagnostic Imaging of Salem Layoffs
Diagnostic Imaging Associates could be used as an example in the healthcare imaging business for its changing business model. If this were to be the case, it is not good news for the healthcare sector. This would mean there will be fewer jobs that need to be filled, which can then impact the education system, with lower student enrollment. The concerning issue is that healthcare is considered an essential service and, with a weak reimbursement program, standards may be dropping at clinics and centers around the country.
“Diagnostic Imaging of Salem closes this month, laying off 34 employees,” Stateman Journal, January 9, 2018.