Teleradiology giant Virtual Radiologic is being sold to physician practice management company Mednax for $500 million in cash, the two companies announced Tuesday.
Publicly traded Mednax, based in Sunrise, Fla., provides physician services in the fields of maternal-fetal care, neonatology, anesthesia and various pediatric subspecialties. The acquisition, which the companies said would close before the end of the second quarter, adds radiology to that list.
“We believe vRad is an excellent platform for growth in teleradiology and the broader telemedicine market,” Mednax CEO Dr./ Roger J. Medel said in a written statement.
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“We believe the opportunities for organic growth at vRad and for cross-selling between the company’s and Mednax’s customer bases are compelling. This acquisition also further broadens the scope of services we can provide to our hospital partners. Finally, vRad’s extensive investments in information technology and data analytics align well with our own commitment to improving both the quality and cost effectiveness of care,” Medel continued.
After the deal closes, vRad will continue to operate under its current name from its Eden Prairie, Minn., headquarters, the companies said.
Mednax, which started as Pediatrix Medical Group in 1979, rode the growth wave of physician practice management companies in the 1990s, then survived the bust around the turn of the millennium, when big names like PhyTel and MedPartners failed spectacularly. It also includes subsidiary American Anesthesiology and revenue-cycle management and consulting businesses.
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