MEDNAX to Acquire vRAD for USD 500 Million

MEDNAX (Sunrise, FL, USA), a US national provider of medical services, has announced the signing of a definitive agreement to acquire Virtual Radiologic Corporation (vRad; Eden Prairie, MN, USA), a leading radiology physician services and telemedicine company, for USD 500 million.

The MEDNAX group consists of leading U.S. neonatal, anesthesia, maternal-fetal, pediatric cardiology, and other pediatric physician service providers. vRAD provides radiology service across the US, and worldwide, and has a network of more than 350 radiologists who read and interpret more than five million diagnostic imaging studies every year. Imaging studies are stored in vRAD’s proprietary Picture Archiving and Communication System (PACS). vRad’s workflow platform, database, and analytic capabilities enable real-time distribution of radiological studies, speed up diagnosis, improve clinical results, and reduce costs.

Roger J. Medel, MD, CEO of MEDNAX, said, “We believe 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 USD 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 company’s and MEDNAX’s customer bases are compelling.”

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