Radiology vendors merge, creating platform that manages medical imaging for nearly 6M Americans

Two radiology vendors are combining to create a platform that manages medical imaging for nearly 6 million Americans, including those covered by 3 of the 5 largest national health plans. 

Medmo and Covera Health, both based in New York, officially announced their merger on Tuesday, with the latter’s lead investor, Insight Partners, to fund the deal and accelerate expansion. Founded in 2017, Covera operates a nationwide Radiology Centers of Excellence network, helping health plans and employers such as Walmart steer beneficiaries to top imaging providers. 

Medmo, meanwhile, launched in 2017 and last year raised $15 million via a Series A funding round. The startup seeks to streamline the process of booking medical imaging, claiming upward of 40% of scan orders are either delayed or never completed. Adding Medmo’s ordering physician relationships—including some of the largest value-based primary care providers in the U.S.—will extend the combined company’s reach to thousands of referrers across all 50 states, the two estimated. 

"Our investment in Covera was grounded in the belief that diagnostic quality is the missing foundation of value-based care," Jeff Horing, co-founder and managing director at New York-based Insight Partners, which has helped the company raise over $100 million to date, said in a statement April 21. "This combination with Medmo closes the critical gap in radiology, from the moment a study is ordered to the moment it drives the right care decision.”

As part of the merger, Covera CEO Ron Vianu will captain the combined company, and Medmo chief executive Lucas Takahashi will continue in that role while acting as president post-merger. Covera’s artificial intelligence-driven platform measures diagnostic accuracy across over 1,100 imaging sites nationwide. It helps clients such as Blue Cross Blue Shield of Michigan route members to high-performing radiology providers “shown to deliver superior diagnostic performance.” Covera also provides AI that analyzes completed imaging studies to help surface any significant findings that may have been missed. To date, its platform has produced 12% lower downstream healthcare costs among the commercially insured, it estimated. 

Medmo was “built to solve the other part,” the two noted, ensuring patients “reach the right imaging center.” It helps ensure that what occurs at a radiology facility is then delivered to the ordering physician and care team who will take potential action. To date, Medmo has facilitated over 1 million patient imaging exams across all 50 states, purportedly delivering a 35% reduction in radiology spend through “advanced site of care navigation.” It additionally has produced 30% higher imaging exam completion rates through “high touch patient engagement and scheduling coordination.” With these successes, Medmo has raised over $30 million in funding to date. 

"Providers often lose visibility the moment a patient walks out of the office with an imaging order," Medmo CEO Takahashi, said in a statement. "Medmo closes that gap, ensuring patients reach the right facility, complete their study, and that results get back to the physician who needs to act on them. Joining with Covera means that every step of that journey now carries clinical intelligence. Together, we've built something new for radiology: a platform that delivers quality and coordination as one."