Raleigh Radiology, the largest physician group in North Carolina, won approval for a new MRI machine, beating out a Chapel Hill, N.C.-based UNC Health subsidiary's proposal, Triangle Business Journal reported Oct. 14.
Raleigh Radiology plans to add the machine to its center in Clayton, N.C. The project is expected to cost about $3.1 million and be operational by October 2025.
The North Carolina Department of Health and Human Services said it found Raleigh Radiology's proposal to be more effective in terms of competition and lower average net revenue and operating expense per adjusted MRI procedure, the report said.
However, Johnston Imaging, a subsidiary of UNC Health Johnston and UNC Health system, which submitted a proposal for the MRI rights as well, had a proposal that served a higher percentage of Medicare and Medicaid patients. Johnston has 30 days to appeal the decision.
The decision came shortly after the North Carolina Supreme Court heard arguments from Durham, N.C.-based Duke Health and Raleigh-based Pinnacle Health Services over a long-standing legal battle over a certificate of need for a new MRI machine in Wake County.