NightHawk Radiology flies away

COEUR d'ALENE - A national radiology company's Coeur d'Alene office is slated to shutter over the next several months, with the choice left up to its 70 employees to transfer out of state or leave the company.

NightHawk Radiology's office in the Lake City will close sometime over the next nine months, part of a consolidation move by Virtual Radiology (vRad), which acquired all of NightHawk's shares last month.

"These decisions have been carefully considered," said Les Mann, spokesman for vRad, also a national radiology practice. "We have tried to be fair both in terms of the communication process and in terms of taking care of them (employees) in the transition."

After completing its merger with NightHawk late last month, vRad evaluated NightHawk's locations across the U.S., Mann said.

The company deemed it best to consolidate all of NightHawk's U.S. offices in Coeur d'Alene, Scottsdale, Ariz., and Milwaukee, Wis., into one location, he said.

The operations of all three offices will be moved to vRad's headquarters in Eden Prairie, Minn.

"For one, we do believe there are efficiencies to be gained by centralizing these functions in one location," Mann said. "Second, there are some economics in that some functions can get handled by our technology (in Minnesota) as well."

The 70 NightHawk workers in Coeur d'Alene, who fill managerial, customer service and administrative positions, can choose to transfer to Minnesota or be let go, Mann said.

Many have already agreed to transfer, he said. Others can make up their minds over the next several months.

"They knew that this was a potential, given the merger, so I don't think there's been a great deal of surprise," Mann said. "We understand for those who are unable to move to (Minnesota) and have to leave, this creates a burden for them."

Alivia Body, regional economist with the Idaho Department of Labor, said the loss of those local jobs will probably affect about 40 other local jobs indirectly.

"It's a high unemployment season as it is," she said.

The NightHawk workers who move to Minnesota will be a loss for the area, she added, which tries to retain its skilled workforce.

Those who are let go will have higher job skills to offer local businesses, Body said.

"But whether businesses are looking for people is the question," she said.

Mann said the Coeur d'Alene closure will take nine months because of the many details involved in consolidating the three offices.

NightHawk has 300 employees in all its offices, including those in the U.S., Zurich, Switzerland and Sydney, Australia. The overseas offices will not be affected by the consolidation.

NightHawk Radiology was founded in Coeur d'Alene in 2001, and moved its headquarters to Scottsdale a couple years ago, Mann said.

The Coeur d'Alene office occupies one floor of the Parkside building at 601 Front Ave. Mann said the building is leased, and he doesn't know its future.

vRad and NightHawk announced their merging in September and completed it on Dec. 22, with vRad acquiring NightHawk's outstanding shares for $6.50 per share in cash.

Upon that completion, NightHawk's common stock ceased to trade on NASDAQ and was delisted.

vRad is private, and not a publicly traded company.

Mann said he is excited about the future, as NightHawk and vRad combined have 325 radiologists serving nearly 2,700 health care facilities across all 50 states.

"There is a human side to this we are sensitive to," he said of the office closures. "We are trying to do this in as equitable a fashion as possible, so they (employees) have time to make career transitions as they move forward."