Mednax to Buy Radiology Services Company Virtual Radiologic

Medical group Mednax (Sunrise, FL, USA) has signed an agreement to acquire radiology physician services and telemedicine firm, Virtual Radiologic (vRad; Eden Prairie, MN, USA) for USD 500 million.

vRad currently generates annual revenues of roughly USD 185 million through its network of more than 350 radiologists, of whom more than 75% are subspecialty trained. The company reads and interprets more than five million diagnostic imaging studies annually, providing radiology services to 2,100 client hospital, health system, and radiology group facilities across the United States and internationally as well via a proprietary picture archiving and communication system (PACS).

The proprietary PACS technology and workflow platform, an extensive database, and comprehensive analytic capabilities enable real-time distribution of studies to appropriately trained, licensed, and credentialed physicians in order to improve clinical outcomes, increase speed of diagnosis, and reduce the cost of care. The acquisition will broaden the scope of neonatal, anesthesia, maternal-fetal, and pediatric physician services Mednax can provide to their hospital partners in the USA and Puerto Rico.

“We believe vRad is an excellent platform for growth in teleradiology and the broader telemedicine market,” said Roger J. Medel, MD, CEO of Mednax. “Radiology is a large, fragmented industry with total revenue of roughly USD 18 billion, and it is evolving rapidly to include teleradiology as an economic and clinical necessity for customers. We believe the opportunities for organic growth at vRad and for cross-selling between the company’s and MEDNAX’s customer bases are compelling.”

“We are excited at the opportunity to join a company founded and built by physicians, and we share Mednax’s commitment to providing the highest quality care,” said Jim Burke, CEO of vRad. “vRad is proud to be recognized as a leader in radiology, an innovator in healthcare informatics, and a pioneer in telemedicine. Together with Mednax, we can offer our patients and hospital partners a broad array of services, now including access to an expanding national network of critical subspecialty expertise and support.”

Related Links:
Medical group Mednax
Virtual Radiologic