Practice striving to become ‘Amazon of radiology’ inks partnership with private equity-backed Rayus
An East Coast private practice striving to become the “Amazon” of the specialty has inked a partnership with private equity-backed Rayus Radiology, leaders announced Saturday.
Meriden, Connecticut-based Midstate Radiology Associates is acquiring majority ownership in two imaging centers, both in the town of Hamden. Before the sale, the locations were jointly owned by New Haven Radiology Associates and Rayus, but the former is vacating its position while the latter retains minority ownership.
Adding the “Whitney Imaging” centers balloons Midstate Radiology Associates’ location count to 24 across Connecticut, including three vein centers, employing 45 radiologists. MRA will manage the facilities on behalf of Rayus Radiology, handling billing and operations, said Chief Operating Officer Tom Cappas, MBA. This is his company’s second acquisition in the past year, also adding Radiology Group PC in June.
“MRA is enthusiastic at the opportunity to partner with Rayus in this new venture and perhaps leverage their best practices, knowledge and back-office support,” Cappas said by email while declining to disclose financial terms of the deal.
Rayus Radiology CEO Kim Tzoumakas added that her Minneapolis-based provider group is “thrilled” to partner with one of the marketplace leaders in Connecticut. Both Whitney Imaging locations will continue operating under the same staff, with radiologists Zenon Protopapas, MD, and Frank Mele, MD, becoming part of the Midstate Radiology Associates team.
MRA was first founded in 1955 and is affiliated with the Hartford HealthCare hospital network. The practice has championed a convenience-focused healthcare model, hoping to become the “Amazon of radiology,” leaders said in a 2020 interview. Cappas believes this latest acquisition furthers MRA’s mission of bringing care “closer to home.”
“We feel very strongly about letting the patient choose where and when they want to be seen,” he said by email. “Many radiology organizations tell the patient when the next available appointment is and at what location. We don’t believe that’s what our patients want.”
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.