Private equity firm PSG invests $80M in radiology vendor Core Sound Imaging
Boston private equity firm PSG is investing $80 million in radiology workflow vendor Core Sound Imaging, the two announced Thursday.
Founded in 2007 and based in Raleigh, North Carolina, Core Sound’s flagship product is the Studycast imaging workflow platform. Physicians and technologists participated in designing the technology, which is billed as “more than a picture archiving and communication system,” providing one workflow for multiple steps in the imaging procurement process.
Private practices, hospitals and labs use Studycast across 49 U.S. states and seven countries, but PSG (formerly Providence Strategic Growth) sees opportunity to scale further. Studycast’s core specialties include cardiology, vascular surgery, and OB/GYN with a concentration in ultrasound, nuclear medicine and electrocardiography, among other modalities.
“As demand for medical imaging studies continues to outpace the supply of professionals available to conduct them, we believe technology, including Studycast, is essential to close the gap and address patient needs,” PSG Senior Advisor Brian Kelly, who will join the Core Sound Imaging board as executive chairman, said in a statement. “From our standpoint, Studycast’s proven technology can alleviate administrative burdens and promote efficiency without sacrificing clinical utility.”
Core Sound will use the funds to “accelerate growth in core verticals,” target additional specialties, and beef up AI capabilities on the platform. The two companies noted that the “legacy processes” of on-premises imaging—without the corresponding necessary workflow integration—lead to errors, care delays, and referrer dissatisfaction. Studycast aims to streamline the process from ordering exams to reviewing and archiving results. Its cloud-based system also allows any patient or provider with an internet connection to access exams.
PSG was founded in 2014 and has backed over 140 companies with a focus on software and technology. The investment group recently participated in a $47 million fundraising round for Nym, a New York-based vendor seeking to automate medical coding in radiology and other specialties.
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.