Telemedicine provider Foundation Radiology raises $1M

Imaging outsourcing company Foundation Radiology Group has raised $1 million as it looks to expand its network of community hospitals.

The Pittsburgh-based company isn’t following the traditional fundraising route of discrete A, B and C rounds. Rather, the company simply raises cash as needed to fuel its growth, CFO Barbara Beaudin said.

Foundation was incorporated in 2006 and raised its first investment funding in 2009. Since then, the company has raised about $22 million, Beaudin said.

As of January, Foundation had 20 clients in five states and 75 employees. Beaudin declined to update those numbers.

Charles Cole Memorial Hospital in Coudersport, Pennsylvania, earlier this month re-upped its imaging services contract with Foundation.

The company recently placed sixth in a local business newspaper’s “Pittsburgh 100,” a list of the area’s fastest-growing companies. Foundation’s revenue grew 220 percent between 2008 and 2010, according to a statement from the company.

Foundation’s major investors are Chrysalis Ventures and Health Evolution Partners.

The trend of radiology outsourcing is being driven largely by technology advances and healthcare cost pressures, which have combined to create a lucrative market for the companies stepping up to provide radiology services as hospitals look to save cash any way they can. That’s made companies like Foundation attractive investment targets.

 

Photo from flickr user Adrian Barnes