Private equity-backed Center for Diagnostic Imaging changes name, acquires another radiology practice
The fast-growing, private equity-backed Center for Diagnostic Imaging is changing its name while also acquiring another radiology practice, the company announced Monday.
Minneapolis-based CDI will now go by the moniker Rayus Radiology, selected from hundreds of options after a refresh undertaken with branding agency Ludwig+. Newly minted CEO Kim Tzoumakas said the 40-year-old company was due for an update to better reflect its mission.
She had conversations with numerous imaging practices during her first month on the job, and experienced confusion when bringing up the CDI name.
“There is just no way you’re going to get radiology groups to use the brand Center for Diagnostic Imaging for their group,” Tzoumakas told Radiology Business. “So, it was going to cause us to continue to have a lot of diversity among brands, and then you don’t have the unified identity.”
Rayus Radiology also just acquired a new practice as part of Monday’s rebrand announcement. InHealth Imaging in Washington state operates three locations in the Puget Sound area. Rayus already has a presence there and believes the addition will complement its 11 existing locations.
At 2021’s tail end, the practice formerly known as CDI also acquired U.S. MRI and Open Imaging and their eight locations throughout Salt Lake City, Utah. The group serves as the official medical provider for the United States bobsled, skeleton, ski and snowboard teams. U.S. Speedskating Medical Director Ted Kyle is partnering in other markets across the country to expand Rayus’ network of subspecialized radiologists, according to an announcement.
With the latest additions, Rayus Radiology now includes more than 400 affiliated rads and 2,000-plus employees. The company operates fixed imaging sites in 22 states, and all 50 when counting their hospital short- and long-term services division, Tzoumakas said. Private equity firm Wellspring Capital Management acquired CDI back in 2019 and is eyeing expansion in the specialty after appointing a new top exec in March. Tzoumakas sees CDI becoming the leading provider of radiology services in the country, backed by its partnership with the New York-based investment firm. Rayus plans to announce two more partnership next week and by the end of the July while continuing to evaluate additional deals.
“Two years ago, we recognized that this company was positioned for growth and scale,” Wellspring Co-president Alex Carles, said in a statement. “Consolidation in the industry provides us with an opportunity to drive the conversation.”
As far as the new name, officials said “ray” defines the business of radiology and illuminates the “brilliant” medicine and tech the company delivers, according to a spokesman. It also symbolizes “shining a light” on the practice of radiology. “Us,” meanwhile, points to the firm’s national footprint, while also signifying physicians uniting under one brand. Rayus Radiology plans to launch a national marketing campaign with the tagline “shine on.” They hope to “challenge status quo in an industry where radiology is treated as an afterthought, not the first critical step in the diagnosis and proper treatment of disease,” according to the announcement.
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.