Radiology Partners Secures $700 Million Funding to Advance Radiology Services for Healthcare Providers

On July 22, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Radiology Partners (RP), the largest radiology specialty clinic group in the United States, announced the completion of a $700 million financing round (with the specific round undisclosed). The round was led by Starr Investment Holdings (SIH). In addition, the company announced that Geoffrey Clark, Senior Managing Director at SIH, would join the RP Board of Directors.

RP will leverage the proceeds from this round of financing to drive clinic expansion, strengthen partnerships with hospitals, and develop innovative technologies based on clinical radiology.

Reportedly, RP has completed four rounds of financing, raising a total of $1.1 billion. Among these, the company raised $234 million in March 2018 and $200 million in May 2017.

Founded in 2012 and headquartered in California, USA, RP is a radiology practice. The organization is dedicated to assembling top-tier radiology professionals to provide diagnostic and interventional radiology services to hospitals, clinics, imaging centers, and other healthcare institutions. Diagnostic interpretations are performed by local radiologists either on-site or remotely. Additionally, RP boasts a seasoned healthcare management team and an advanced care delivery model, ensuring consistent, high-quality patient care. Currently, RP employs approximately 1,400 radiologists, with offices across various U.S. states, serving more than 1,000 hospitals and outpatient centers.

The services provided by RP eliminate the burdens that complex insurance reimbursements and contract negotiations impose on physicians, enabling them to focus on patient care. Radiologists trained by the organization meet the operational standards of local healthcare institutions. Furthermore, as most of RP’s shareholders are radiologists, its leadership believes that early partners will determine the clinic’s strategic direction.

RP’s business also extends to radiology consulting, health insurance, and health information-related fields. Many of RP’s leaders are executives from the healthcare company DaVita Healthcare Partners. DaVita, which specializes in clinical nephrology care, rose from near bankruptcy to become a Fortune 300 company with a market capitalization of $12 billion within ten years of its founding.

“Radiology is one of the most important areas in healthcare. RP is building innovative models of medical service delivery and developing new technologies to optimize patient care. We endorse the strategic vision of physician-led business operations and are delighted to grow alongside RP,” said Geoff Clark, Senior Managing Director at SIH.

RP Director Rod Owen stated, “RP meets patients’ care needs and connects healthcare institutions with experienced radiologists. Our mission is to transform the practice of radiology, and this new investment from SIH affirms our team’s capabilities. The funding will be used to cultivate top-tier physicians and drive technological innovation in radiology.”

SIH, founded in 2007 and headquartered in New York, USA, is a venture capital and private equity firm. The company primarily invests in private technology innovation enterprises with market leadership and efficient operations, with a particular focus on the healthcare services and financial regulatory services industries. SIH boasts an experienced investment management team dedicated to making long-term investments in healthcare companies to support new product development and business expansion.

(Compiled by Xu Xiaoxue)