Mergers & Acquisitions

The healthcare industry sees a lot of consolidation between both vendors and healthcare providers this channel tracks mergers and acquisitions between large healthcare systems, community hospitals, private practices, vendors and private equity investors. Health systems have been growing in size substantially in the past decade with mergers with smaller healthcare systems and hospitals. This is largely due to the need to be more efficient amid lower reimbursements and rising costs by building an economy of scale in a larger health system. On the vendor side, mergers have become a common way to reduce research and development costs by purchasing intellectual rights for new technologies, or to purchased companies with new technologies that already have regulatory market clearance. 

RadNet CEO Howard Berger

RadNet is sitting on almost $700M in cash. CEO Howard Berger, MD, discusses how he plans to deploy it

He discussed the Los Angeles-based imaging center operator's growth strategy during the Jefferies 2024 Global Healthcare Conference. 

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Radiology stakeholders weigh in on FTC’s exploration of how ‘corporate greed’ is impacting the specialty

The Federal Trade Commission, Department of Justice, and Health and Human Services recently launched an inquiry into private equity and other corporations’ “increasing control over healthcare." 

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Thousands of radiology practices have lost their independence amid waves of consolidation

Between 2015 and 2022, nearly 3,500 physician practices that provide radiology services disappeared from the Medicare Provider Data Log, according to the Neiman Health Policy Institute. 

Solis Mammography

Private equity-backed Solis Mammography touts latest center acquisition

The Addison, Texas-based provider is purchasing the Mammography and Ultrasound Imaging Center in Gainesville, Florida, adding to its growing number of locations. 

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Radiology AI vendor Lunit completes acquisition of rival Volpara for $193M

Based in Seoul, South Korea, Lunit called the acquisition a “significant milestone” in its “mission to conquer cancer" through artificial intelligence.

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Buffalo’s 2nd largest diagnostic imaging center operator on why it sold to private equity

Founded in 1959, Southtowns Radiology announced in November that it was unloading its imaging center business to Atlanta-based Rezolut. 

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Private equity dealmaking in healthcare stalls amid persistent bid-ask gap, negative regulatory environment

PE sponsors announced or closed about 158 transactions in the first quarter (including five in imaging), a “downward trend even from 2023’s sluggish pace,” Pitchbook reports.  

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Radiation therapy centers sold out of private equity-backed provider’s bankruptcy estate for nearly $3M

American Shared Hospital Services is acquiring a 60% stake and expects the facilities to generate upward of $10 million in annual revenue. 

Around the web

After reviewing years of data from its clinic, one institution discovered that issues with implant data integrity frequently put patients at risk. 

Prior to the final proposal’s release, the American College of Radiology reached out to CMS to offer its recommendations on payment rates for five out of the six the new codes.

“Before these CPT codes there was no real acknowledgment of the additional burden borne by the providers who accepted these patients."

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