partnership_dealBy Elaine Sanchez Wilson

MEDNAX, a provider of maternal-fetal, newborn, pediatric subspecialty and anesthesia physician services, has acquired vRad, of Minneapolis, a radiology physician services provider.

The transaction, valued at $500 million, is now complete.

According to David Trachtenberg, chief solutions officer at vRad, the company’s acquisition aligns closely with MEDNAX’s priorities, including providing high-quality clinical care, utilizing scale and data to improve patient outcomes, being a solutions provider to health systems and groups, and driving innovations and establishing thought leadership. “MEDNAX sees vRad as an opportunity to drive innovation across all of its priorities given vRad’s experience and expertise in radiology, telemedicine and healthcare informatics,” he said.

No plans are in place to change how vRad operates on a daily basis, Trachtenberg continued. “The entire executive team, medical leadership, physicians and team members are all looking forward to joining MEDNAX,” he said, adding there are also no plans to relocate vRad’s headquarters, 24/7 operations center or Minnesota-based team members. “[The company] will continue to operate as it has in the past, which is a source of stability for our employees and our clients.”

Furthermore, Trachtenberg said vRad will not change how clients currently interact and do business with the practice, commenting that “operational and clinical teams will continue to support all of our clients with the same quality assurance, turnaround times and attention to detail that they have come to expect and demand.”

MEDNAX chief Roger J. Medel, MD, said his company believes vRad is an excellent platform for growth in teleradiology and the broader telemedicine market. “Radiology is a large, fragmented industry with total revenue of roughly $18 billion, and it is evolving rapidly to include teleradiology as an economic and clinical necessity for customers,” Medel said. “We believe the opportunities for organic growth at vRad and for cross-selling between the company’s and MEDNAX’s customer bases are compelling.”

The acquisition further broadens the scope of services MEDNAX can provide to its hospital partners, Medel said. Also, “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.”

The financial advisor in connection with the transaction is Credit Suisse Securities (USA) LLC and the legal counsel is Kirkland & Ellis LLP.

For more information, visit www.vrad.com/MEDNAX.

 

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