Radiology provider MedQuest part of deal to acquire 18 imaging centers from 1 of nation’s largest orthopedic groups

Novant Health system—in collaboration with radiology provider MedQuest Associates—is acquiring 18 outpatient imaging centers from one of the nation’s largest orthopedic groups, leaders announced Tuesday. 

OrthoCarolina is the seller, unloading locations across its home city of Charlotte and the Piedmont Triad region that includes Greensboro, Winston-Salem and High Point. The more than 100-year-old private orthopedic practice will continue facilitating patient care during a transition period, with MedQuest Associates taking over day-to-day operations. 

Novant Health Enterprises—a newly established business division of the 19-hospital not-for-profit network—partnered with private equity firm TPG in January 2023 to begin growing MedQuest throughout the U.S. The Alpharetta, Georgia, outpatient imaging provider was founded in 1996 and operates over 50 imaging centers. 

“Two years ago, we announced our commitment to help expand MedQuest across the country, and this new agreement is another step in our journey to make imaging services more affordable,” Dean Swindle, MBA, chief strategy officer of Novant Health and president of the Enterprises division, said in a statement April 1. “OrthoCarolina and MedQuest share our commitment to provide access to high-quality care, and we look forward to continued collaboration to support our patients and create healthier communities.”

As part of the deal, Novant Health also is acquiring fixed and mobile MRI assets from the orthopedic group, which dates to 1922 and employs over 300 practitioners working across 40 locations and seven urgent care centers. OrthoCarolina also highlighted the arrangement on social media Tuesday, saying its “collaborating” with Novant and MedQuest to “enhance access to affordable imaging services.” 

“With this agreement, we can ensure our shared patients receive top-quality imaging care while continuing to deliver the outstanding orthopedic services they expect from OrthoCarolina,” said spine surgeon and CEO Leo Spector, MD, MBA. 

All three parties hope to ensure a “seamless” changeover following the ownership change. Bailey & Company served as financial advisor to OrthoCarolina in the deal. 

“MedQuest welcomes our new team members from OrthoCarolina and is pleased to offer a smooth transition for patients,” Bruce Elder, MBA, chief development officer for MedQuest, said in the announcement. “Together, with Novant Health, we can facilitate the further expansion of imaging services to better serve patients across the Carolinas,” he added later. 

Novant Health is headquartered in Winston-Salem, North Carolina, and operates a network of over 900 locations spanning the Carolinas, Virginia and Georgia. Key Bank in 2023 estimated that TPG’s investment in the MedQuest-Novant partnership was worth about $110 million. Cain Brothers, a division of KeyBanc Capital Markets, served as financial advisor to the private equity firm on the initial partnership in December 2022. 

Here is the full list of imaging center locations:

• Charlotte region: 
  • 15825 Ballantyne Medical Place, Charlotte, N.C.
  • 2001 Randolph Road, Charlotte, N.C.
  • 9848 N. Tryon St., Charlotte, N.C.
  • 710 Park Center Drive, Matthews, N.C.
  • 703 Comfort Lane, Monroe, N.C.
  • 354 Copperfield Blvd., Concord, N.C.
  • 870 Summit Crossing Place, Gastonia, N.C.
  • 540 Mount Holly Medical Parkway, Belmont, N.C.
  • 10315 Hamptons Park Drive, Huntersville, N.C. 
  • 124 Welton Way, Mooresville, N.C. 
  • 101 Delta Park Drive, Shelby, N.C. 
  • 214 18th St. SE, Hickory, N.C.
  • 1604 Medical Drive, Laurinburg, N.C.
• Piedmont Triad region: 
  • 445 Pineview Drive, Kernersville, N.C.
  • 3311 Jessie Village Drive, Clemmons, N.C.
  • 170 Kimel Park Drive, Winston-Salem, N.C.
• South Carolina:
  • 6237 Carolina Commons Drive, Indian Land, S.C.
  • 601 S. Sutton Road, Fort Mill, S.C.

Editor's note: An earlier version of this story incorrectly stated that MedQuest Associates is acquiring the centers. However, Novant Health is the sole acquiring party in the transaction. Radiology Business regrets this error.