RadNet expands on East Coast, Solis Mammography’s execution risk, plus more company news
Imaging center operator RadNet Inc. is expanding on the East Coast in early 2022 with a recent acquisition, officials announced recently.
The company’s Delaware Imaging Network affiliate is doing so by purchasing Mid-Delaware Imaging in the city of Dover. Leaders did not disclose terms of the deal, which marks RadNet’s first foray into southern Delaware and the start of operational expansion plans in the area, local media reported Friday.
“We are excited as this will be our first radiology center in our state's capital and the ninth radiology center in the Delaware region,” the RadNet affiliate said in a brief announcement.
Mid-Delaware Imaging is a family owned and operated practice that has serviced the Dover area for 25 years, according to its website. Los Angeles-based, publicly traded RadNet, meanwhile, was first founded in 1984, operates more than 350 imaging centers, employs 500-plus radiologists, and generates about $1.1 billion in annual revenue.
Solis Mammography’s execution risk
Moody’s Investors Service believes one of the nation’s largest independent breast imaging providers faces execution risk in ongoing efforts to expand primarily through debt.
Analysts said Solis Mammography is constrained by its small scale, geographic concentration in Texas, elevated leverage, and narrow business focus on the modality, but they see promise in other areas.
“The company benefits from its recurring revenue stream from its tailored service offering, partnerships with strong healthcare networks, low reimbursement risk with a solid payer profile, limited exposure to government plans, and an established track record of organic growth and patient retention,” Moody’s said in a periodic review issued Nov. 23.
Based in Addison, Texas, Solis operates about 90 centers across eight states, generating nearly $150 million in revenues. Chicago-based private equity firm Madison Dearborn Capital Partners acquired a majority stake in Solis in 2018. Moody’s also highlighted its PE ownerships as another potentially constraining factor.
The Texas company has announced several recent partnerships, acquiring the largest rad-owned practice in the Washington metro area in January and entering its 10th major market in March. Solis also teamed with Whiterabbit.ai in late November, hoping to use artificial intelligence to increase compliance with annual mammograms.
Akumin’s credit access shrinks
Amid ongoing delays in filing financial documents, radiology provider Akumin is seeing the amount available through its revolving credit line shrink, the company said Dec. 6.
Until the Plantation, Florida, firm delivers delayed third quarter financials, lenders are paring back Akumin’s available funds from $55 million down to $10 million. Imaging leaders said they currently have no balance due under the credit line, and the company plans to provide the Q3 documents by the Dec. 15 deadline.
Akumin revealed such details in its latest biweekly “management cease trade order” update. Back in August, the imaging group barred executives from trading company stock after it failed to file Q2 financial documents on time. The order came as auditors and Akumin management agreed that additional information and analysis were needed to sort out the company’s books.
Moody’s issued its own assessment of the situation Nov. 23, believing financial restatements revealing higher leverage, along with ongoing Q3 filing delays, “cast doubt” on Akumin’s projected earnings.
The imaging center chain recently closed a deal to purchase Alliance Healthcare Services for $820 million. Following the acquisition, Akumin operates 154 outpatient imaging locations and is expected to generate $730 million in combined annual revenue.
Rapid fire
A few more company news items of note, in rapid fashion:
- Physicians with Casper Medical Imaging and Outpatient Radiology, Radiology Associates of North Texas, Advanced Radiology Services, and Regional Diagnostic Radiology recently shared their advice on how to navigate an interview during corporatization talks.
- One of the nation’s largest teleradiology practices, vRad recently expanded its artificial intelligence pact with Radiobotics, aiming to automatically ID bone fractures on X-rays.
- Strategic Radiology, a growing coalition of independent practices, inked a partnership with Quinsite to bolster its ability to aggregate data and develop metrics to improve workflows.
- Shields Health Care Group, one of New England's largest diagnostic imaging providers, is working with Guerbet to improve MR contrast delivery, officials announced Dec. 7.
- And finally, Tower Radiology, one of the largest physician-owned outpatient radiology practices in West Central Florida, has teamed with Tampa General Hospital to open a new dedicated PET/CT center in Palm Beach Gardens.
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.