Private equity-backed Integrated Diagnostic Services acquires rival radiology firm
Fresh off forming a new mobile radiology group in March, private equity firm HCAP Partners has now inked its first acquisition.
Integrated Diagnostic Services is initiating its planned “roll-up” strategy by buying First Choice Mobile Radiology Services. Around for over 30 years, First Choice provides X-rays, ultrasounds, and echocardiograms to senior care facilities in Southern California.
IDS said last month that it will remain on the lookout for M&A targets as it seeks to merge multiple smaller companies to form a larger, more competitive entity.
“There is a significant opportunity to improve how diagnostics are delivered across senior care and home health settings by building a high-quality, differentiated platform,” Hope Mago, partner at La Jolla, California-based HCAP Partners, said in a statement. “We formed IDS with the belief that we could help reshape access to care—and with the close of FCMR, we're taking that vision forward.”
HCAP did not disclose terms of the deal, noting that First Choice has a “well-established” presence in SoCal, serving nursing homes, long-term care facilities, palliative providers, and home health agencies. The company is focused on providing bedside care to seniors, helping to eliminate the need for patient transport, reduce costs and improve outcomes.
Integrated Diagnostic Services labeled this the “first of several anticipated acquisitions” as it seeks to build a platform of mobile imaging providers. The company said last month that ideal future targets will generate $1 million to $30 million in annual revenue with strong senior-care facility relationships.
"Joining IDS is a great next step for First Choice," Kurt Stewart, founder of FCMR, who will stay onboard as president of operations, said in the announcement. “This partnership gives us the opportunity to reach more patients and continue raising the bar for mobile imaging,” he added later.
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.