It’s official: Radiology practice SimonMed inks partnership with New York private equity firm
Radiology center operator SimonMed has officially announced its partnership with a New York-based private equity firm less than a week after one industry publication unearthed the deal, citing anonymous sources.
The Scottsdale, Arizona-based group says it is both one of the largest independent outpatient imaging providers and largest independent radiology practices in the U.S. Altogether, SimonMed operates 147 centers across 11 states and employs nearly 200 radiologists, with 2 million patient visits per year.
American Securities and SimonMed did not disclose terms of the deal Wednesday. But PE Hub reported last week that the private equity firm was dishing out $600 million for the sponsorship, according to anonymous sources.
“We chose American Securities as the best partner for SimonMed because they bring strategic, functional and financial resources that will support and accelerate our many growth initiatives, and also because they understand and share our commitment to offering the highest quality imaging services and patient experience in the market,” John Simon, MD, founder and CEO of SimonMed, said in a statement issued April 21.
American Securities noted that patients and referring providers are increasingly seeking out radiology services in the outpatient setting. SimonMed has an “incredible growth history,” and the private equity firm believes pricing, quality and technology position the company as a “long-term winner in its market.”
"We have significant experience partnering with founder-led companies and growing distributed healthcare businesses,” Ben Dickson, a managing director of American Securities, said in a statement. “Dr. Simon and the rest of the talented SimonMed team offer truly differentiated imaging and radiology services and we are excited to work with them to reach more patients by continuing to build density in SimonMed's existing markets, as well as expanding into new markets around the United States.”
American Securities’ healthcare investment portfolio also includes North American Partners in Anesthesia, Aspen Dental, and privately held medical transport firm Air Methods. Jefferies served as a financial advisor on the deal, while Perkins Coie provided SimonMed’s legal counsel.
The partnership continues a trend, with private equity firms backing several other radiology groups including Radiology Partners, Envision Healthcare, the Center for Diagnostic Imaging and U.S. Radiology Specialists. A recent JAMA analysis noted that the number of physicians practicing under PE has grown in recent years, a trend the authors believe warrants scrutiny.
Some have expressed concern about this development, with perceived downsides such as high practice debt loads and the loss of clinical autonomy. On the flipside, corporate-backed practice does come with perks, including streamlined back-office operations and more time to focus on subspecialty-specific functions, one expert wrote in January.
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.