Smart Choice MRI raises $6.5 million, eyes expansion into Chicago

Smart Choice MRI, a Wisconsin-based healthcare provider known for providing MRIs for an all-inclusive fee of $600 or less, has raised $6.5 million to expand to other markets, the company announced this week.

Smart Choice MRI is planning on beginning its expansion in Chicago, and then exploring additional markets after that.

"With consumers assuming more of their medical expenses than ever before, they want to know their options," Rick Anderson, Smart Choice MRI CEO, said in a statement. "They deserve a choice. We are changing the way healthcare is delivered, starting with complete price transparency at a fair rate. Our investors share this vision, enabling us to achieve this significant milestone. With six clinics to date, Smart Choice MRI will now be able to significantly expand its footprint outside of Wisconsin. We couldn't be more thrilled to move this business model forward to serve even more patients and communities in the year ahead.”

Milwaukee-based F Street Capital, with assistance from a “core group of legacy and new investors,” led the financing round with an investment of $2.5 million.

"It's clear to us that Smart Choice MRI is on the leading edge of a new era of healthcare—one that empowers patients," Todd Gruen, F Street Capital managing partner, said in the statement. "The changes in our healthcare system have fueled consumers who demand to understand their options—quality at a fair price has never been more important."

Smart Choice MRI compares its $600 fee with an average MRI cost of $2,948, as quoted by the Wisconsin Hospital Association.

The company is accredited by the American College of Radiology, and its scans are interpreted by radiologists at the Cleveland Clinic.

Smart Choice MRI currently has six locations, all in Wisconsin. They are in Milwaukee, Sheboygan, Richfield, Waukesha, Kenosha, and Appleton.