St Paul Radiology Bids NightHawk Adieu, Pays $26 Million

Julie Ritzer Ross | | Radiology Business | Business Intelligence
St Paul Radiology, Minneapolis, Minnesota, will exit a long-term agreement to provide teleradiology interpretations for NightHawk Radiology, Scottsdale, Arizona, at a price of $26 million, reports the Minneapolis StarTribune. Under the terms of the agreement, St Paul will buy back its business services unit for $24 million and its emergency teleradiology service for $2 million. The practice sold both units to NightHawk three years ago for $62.5 million, when it signed a long-term agreement with the teleradiology company that included the provision of business services. “We did not feel that after three years we were especially well suited to operate in that environment and that it distracted us from our core business,” Michael T. Madison, MD, president and CEO, St Paul Radiology, told the newspaper. Madison also said that the practice would return to its core business of serving local hospitals. Teleradiology represents between 10% and 15% of St Paul’s business.

Julie Ritzer Ross,

Contributor

Related Content

Orano Med breaks ground on $265M thorium production site
Image-interpretation market scoreboard: Radiologists 72%, others 28%
Lantheus lands rights to budding radiopharmaceuticals for initial outlay of $35M
17 short-term strategies to address the national radiologist shortage
‘SR’ onboards another independent practice, its 1st in the Natural State
Analysis: Allied radiology professionals generate millions of dollars per year in indirect revenues alone

Around the web

Health Imaging
Nearly $800,000 settlement offered to family of man who died during MRI exam

The patient, who was being cared for in the ICU, was not accompanied or monitored by nursing staff during his exam, despite being sedated.

Cardiovascular Business
Global shortage of nuclear imaging isotopes may be over

The nuclear imaging isotope shortage of molybdenum-99 may be over now that the sidelined reactor is restarting. ASNC's president says PET and new SPECT technologies helped cardiac imaging labs better weather the storm.

Cardiovascular Business
‘A huge win’: CMS significantly increases Medicare payments for cardiac CT

CMS has more than doubled the CCTA payment rate from $175 to $357.13. The move, expected to have a significant impact on the utilization of cardiac CT, received immediate praise from imaging specialists.