AMN Healthcare to acquire radiology staffing firm in deal valued at $300M
Healthcare talent solutions provider AMN Healthcare is acquiring a staffing firm, which specializes in the recruitment of radiologists and other providers, for $300 million.
MSDR consists of two companies: DRW Healthcare Staffing and Medical Search International. The latter, also referred to as MSI, was founded in 2002 and serves hospital systems across the U.S., placing professionals that specialize in radiology, anesthesia, surgery and psychology. DRW, meanwhile, was founded in 2011 and specializes in 3 of the same 4 specialties, but not radiology.
“Now more than ever, it is critically important that healthcare systems have streamlined access to the services, technologies, and healthcare professionals needed to support the patients and communities they serve,” AMN Healthcare President and CEO Cary Grace said in an Oct. 24 announcement. “This acquisition is the result of our continued dedication to meet the needs of our clients, who I am confident will see the breadth and value of our services increased with this acquisition of MSDR.”
Publicly traded, Dallas-based AMN Healthcare believes the transaction will position it for “substantial revenue growth” in the locum tenens space. MSDR collected revenue of $104 million last year, with year-to-date annualized 2023 revenue tracking at $155 million. AMN Healthcare expects to close the deal by Jan. 1, subject to regulatory approvals, funding the purchase with cash on hand and its revolving credit line.
Adding MSDR, the company added, will expand its portfolio of solutions to provide clients with a larger and more diverse candidate pool. This includes healthcare professionals that specialize in some of the “most needed, in-demand services.” In August, an AMN Healthcare report labeled radiology as the third most sought-after specialty, behind only physicians in family medicine and nurse practitioners.
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.