Pushback on plans of expansion by Life Healthcare

Private hospital group Life Healthcare’s plans to expand into the SA imaging market have run into opposition from the country’s key industry association for radiologists, which is questioning the legality of the group’s first acquisition.

Life Healthcare announced on February 10 that it had bought the nonclinical imaging operations of the East Coast Radiology (ECR) practice in East London, the first of a series of acquisitions it plans to make in the industry, which provides services such as X-rays and ultrasounds.

It aims to leverage its experience with its European imaging business Alliance Medical Group, which provides a wide range of diagnostic services, including sophisticated molecular imaging used for conditions such as cancer, heart disease, and brain disorders.

The transaction sees all the equipment and nonclinical staff from ECR’s six practices transferred to Life Healthcare, while the radiologists who interpret the images continue to run their own independent practices,

with a guarantee of being able to provide their services to Life Healthcare for five years. The rules set by the Health Professions Council of SA (HPCSA) stipulate that the radiographers who operate the machinery that takes images such as X-rays may not interpret the results, and that this role is the sole preserve of radiologists.

LEGALITY

The Radiological Society of SA (RSSA), the main association for radiologists in private practice, is now questioning the legality of the contract between Life Healthcare and ECR, saying it may contravene HPCSA rules on fee-sharing. In an open letter to doctors, radiographers and radiologists, dated February 18, the RSSA said Life Healthcare had confirmed in writing that the radiologists’ fees would be shared variably with Life.

“This contravenes the ethical rules on fee-sharing, and as radiologists charge a global fee, puts the determination of professional earnings in the hands of a corporate,” it said.

The RSSA said both Life Healthcare and ECR had declined to disclose their contract, and it was finalising a formal complaint to the HPCSA.

The RSSA expressed concern about the possibility that Life Healthcare might in future use telemedicine to obtain services from radiologists outside SA. While current HPCSA rules say a radiology examination performed in SA may only be reported on by a radiologist registered as specialist with the council, Life Healthcare had indicated it would use radiologists from outside the country if these regulations were changed, said the RSSA.

Life Healthcare had previously sent an open letter to the sector, dated February 10, in which it said it had obtained legal opinion on the matter, and believed its model was compliant with all regulations and associated ethical rules.

In a subsequent statement on February 25, Life Healthcare said it had “taken every precaution” to ensure its approach was lawful, ethical and in the best interests of patients.

“Life Healthcare intends to improve access and affordability of radiology services in the hands of both patients and funders and make available technology, which together with radiologists will enhance the practice of radiology,” it said.

LIFE HEALTHCARE AIMS TO LEVERAGE ITS EXPERIENCE | WITH ITS EUROPEAN IMAGING BUSINESS ALLIANCE MEDICAL GROUP