C-Suite Shakeup at Major Health Systems

The retirement of Dayton Children's CEO Deborah Feldman and Leslie Davis taking the helm at UPMC are more than just leadership changes; they signal shifts in strategy that will ripple through the market. Feldman's 14-year tenure resulted in a tripling of revenue and a massive $800 million facilities investment, heavily focused on expanding outpatient and mental health services—a foundation her successor will now build upon. At UPMC, Davis, the first woman to lead the $23 billion enterprise, is prioritizing innovation and the expansion of neighborhood outpatient centers to increase community access. These leadership transitions are happening amidst a broader trend of high executive turnover, which can disrupt established vendor and supplier relationships. Such changes often create opportunities for new partners as incoming leaders re-evaluate existing contracts and strategic priorities. For suppliers, a CEO change can be a critical inflection point, potentially leading to shifts in purchasing decisions and service agreements as new executives look to make their mark. This executive churn coincides with a significant migration of imaging services out of hospitals. Payers are increasingly pushing non-emergency imaging to lower-cost outpatient settings, a trend accelerated by the pandemic. Approximately 40% of all radiology volume is now performed in outpatient centers, with growth in this sector outpacing the overall radiology market. Health systems are responding by acquiring or building their own freestanding imaging centers and forming joint ventures with established operators to capture this growing market segment. Major imaging providers are aggressively expanding to meet this demand. RadNet, for instance, is moving beyond its core markets and plans to open 11 new centers in 2025, supported by over $700 million in cash for acquisitions and a strategy to increase its hospital joint ventures. This growth is a direct response to rising demand for advanced imaging like PET/CT, which has seen volume grow over 15%. Meanwhile, Akumin has emerged from Chapter 11 as a private company under new ownership, aiming to reach over $850 million in revenue by 2027. This push to outpatient settings is creating significant staffing challenges for imaging departments. Vacancy rates for specialized technologists are at all-time highs, with 19.4% of CT and 17.4% of MRI positions unfilled in 2025. This shortage of experienced staff, which totals an estimated 40,000 professionals, puts pressure on departments to optimize throughput and manage complex patient cases with a less-seasoned workforce. Simultaneously, the technology landscape is rapidly evolving, with AI in radiology leading the charge. The FDA has now granted marketing authorization to over 1,000 AI-enabled radiology devices, with 75% of new AI medical device approvals in the first three quarters of 2025 being for imaging. Major players like GE HealthCare and Siemens Healthineers lead in the number of approvals. These tools are designed to improve diagnostic accuracy and reduce radiologist workload, addressing the very operational pressures that imaging directors face. For radiology buyers, the focus remains on operational efficiency and navigating reimbursement complexities. The proposed 2025 Medicare Physician Fee Schedule indicates a nearly 2.8% decrease in the conversion factor, putting further pressure on imaging revenue. This financial pressure, combined with staffing shortages and the capital demands of new technology, makes a compelling case for solutions that improve efficiency and demonstrate clear ROI.