CHICO — Diagnostic imaging company Open System Imaging is closing down at the end of the week.
The company, which opened in Chico in 1999, will have its last day of business Friday.
According to founder and Chief Executive Officer Ken Bishop, the current regulatory environment creating declining reimbursement by insurance companies and government payers, the rising cost of labor in Chico, advanced imaging equipment and maintenance, taxes and supplies are the reasons for Open System Imaging shutting its doors.
“Literally every vendor that services the company has raised their prices because of inflation, yet the insurance companies and government payers have reduced what they can collect for their services. It’s unsustainable,” said Bishop in an email.
Bishop said the staff has suggested patients schedule their future exams at Enloe Advanced Imaging.
“They are the only provider with the same range of services and similar quality of services that OSI has been providing. Patients should avoid any mobile units. They are sub-optimal for diagnostic purposes,” Bishop said.
Bishop said some, but not all, of the 24 employees working at Open System Imaging have been able to find new positions. He is proud of the work the company has done for so many years.
“Open System Imaging has been privileged to serve the greater Chico community since 1999. Until recently we succeeded in providing an affordable, no compromise, medical imaging service to our providers and patients and a professional friendly place for employees to excel,” Bishop said.
Bishop is grateful to his employees for helping the company to succeed.
“That success was in large part due to the dedication, hard work, and compassion of three of the finest people I have had the honor of serving with, Diana Crabtree, Annmarie Barrett, and Cheryl Massa,” Bishop said.
Crabtree is currently the OSI Center Manager and Business Development Director. Massa retired last year. Barrett was the Director of Operations until last August when that position was eliminated. All three employees worked at OSI since the beginning.
Bishop will continue to manage the two imaging centers located in Southern California. He said if things can be fixed there is a possibility the company could reopen in Chico.
“We are hoping the location will continue to operate for the community in the not to distant future. If we can restructure our cost basis or work to transition to another provider, it will reopen,” he said.