MEDNAX, a national group practice of pediatric and anesthesiology specialists offering services to hospitals and physician offices, has agreed to acquire vRad, which offers radiology and telemedicine services to provider organizations, for $500 million.
The deal is expected to close during the second quarter of 2015 and immediately make a positive impact to the earnings of publicly held MEDNAX. The vRad management team will join MEDNAX and the vRad office in Eden Prairie, Minn., will remain open.
Fort Lauderdale, Fla.-based MEDNAX has more than 10,000 employees, including 2,650 physicians in 34 states and Puerto Rico, company executives said. Pediatricians serve in such subspecialties as neonatal intensive care, maternal-fetal medicine, cardiology, critical care, emergency medicine, hospitalists, urology and nursery services. The bulk of providers are anesthesiologists and advanced practitioners supporting hospital and ambulatory surgical centers, pain management clinics and office-based medical and dental practices. The company also offers newborn hearing screenings, revenue cycle management services and consulting services.
vRad has more than 350 radiologists, with three-quarters of them subspecialty trained, provides radiology coverage to 2,100 facilities nationwide and overseas, and generates annual revenue of about $185 million. The company has its own picture archiving and communication system and interprets more than 5 million diagnostic imaging studies each year.
We believe vRad is an excellent platform for growth in teleradiology and the broader telemedicine market, MEDNAX CEO Roger Medel, M.D., said in a statement. 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. We believe the opportunities for organic growth at vRad and for cross-selling between the companys and MEDNAXs customer bases are compelling.
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