Private equity firm launches Integrated Diagnostic Services, a new mobile radiology company
A California private equity firm is launching a new mobile radiology services company, hiring an industry veteran to captain the endeavor.
Integrated Diagnostic Services (IDS) will cater to nursing homes, assisted living facilities, and home health providers. The HCAP Partners-backed imaging group will provide mobile X-ray, ultrasound, electrocardiogram and lab work, positioning itself as a cheaper alternative to hospitals and outpatient clinics.
IDS has hired industry veteran Kelly McCullum as CEO, touting his previous radiology experience leading organizations such as TridentUSA Health Services (now TridentCare). He has played a “key role” in developing the national mobile diagnostic imaging outfit, using an “organic growth and a roll-up strategy,” HCAP noted.
"Providing mobile radiology services directly to a patient's bed … is the most timely, cost-effective, and caring means of providing these services,” McCullum said in a statement March 20. “Patients who lack access to these services can face long wait times, endure difficult transportation options, and pay much higher prices traveling to a hospital—if they are even able to make the trip.”
HCAP Partners is leading the formation of Integrated Diagnostic Services and also has hired mobile imaging vet Rick Navarro as part of its team. The company plans to “expand significantly” through acquisitions, organic growth and by adding more services. They’re seeking M&A targets, focused on entities with $1,000,000-$30,000,000 in revenue and “strong” senior-care facility relationships, “ensuring strategic alignment and operational synergies.”
Hope Mago, a partner with HCAP, played a key role in the company’s creation and will serve on its board. The San Diego-based private equity group—specializing in supplying mezzanine debt and PE to underserved, lower-middle market companies—highlighted a strong opportunity in senior care.
"With approximately 30,000 assisted living communities in the U.S. and 1.2 million licensed beds, the need for mobile diagnostic care will continue to be driven by three key trends: an aging population, a shift toward outpatient and mobile care, and increased demand for diagnostic imaging,” Mago said in the announcement. “As these trends accelerate, Integrated Diagnostic Services is well-positioned to become a leader in mobile diagnostic services."
HCAP also touted plans to create new jobs for X-ray techs and other mobile healthcare professionals. The private equity firm has championed a “Gainful Jobs Approach,” striving to improve the quality of careers and “facilitate a positive impact on underserved businesses, their employees, and the communities they serve.”
"We see a significant opportunity to grow our workforce while improving patient outcomes," McCullum said.
Private equity has raised concern from some stakeholders in radiology, who contend investors can take decision-making away from physicians. Previous studies have tied PE ownership to higher healthcare prices and greater utilization of services, experts noted this month in the American Journal of Roentgenology.
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.