by John R. Fischer
, Senior Reporter | October 22, 2018
Hospital-based physician group Envision Healthcare Corp. has acquired Decatur Radiology Physicians Service Corp., expanding its operations into the central Illinois market.
The acquisition of the central Illinois practice builds on its radiology services, as well as its security on a national scale at a time when regulatory pressures and the recent implementation of legislation such as Medicare Access and the CHIP Reauthorization Act of 2015 has forced hospital outsourced clinical services to enter into mergers and acquisitions to continue providing care and keep up with added enhancements in their industry.
“Given the uncertainty of medicine, not just in central Illinois, but in the nation itself, we thought of what Envision could offer us in terms of security on a national scale and in radiology,” Mark Brumit, former president of Decatur Radiology Physician Services Corp., told HCB News. “In addition, we felt they could offer some resources to help us improve the quality of radiology here in our local area.”
Other recent acquisitions within the radiology community include that of Medical Arts Radiology by RadNet
in a move that marked the entry of the latter into the Long Island market, as well as the acquisition of Florida’s Mori, Bean & Brooks
by Radiology Partners.
In addition to security, the agreement offers Decatur access to new initiatives, including data mining and the creation of screening programs. It also allows KKR & Co.-owned, Tennessee-based Envision to assume responsibility over DRP business priorities, providing Brumit and his colleagues more time to focus on patients.
“We hope to be the linchpin of developing both organically in the area for them and what they can bring in terms of better healthcare for the people of central Illinois,” said Brumit.
DRP offers comprehensive services to the only large hospital in Decatur, Illinois and handles more than 140,000 reads annually.
Edgemont Capital Partners L.P. served as financial adviser to DRP throughout the sale. It is the 83rd transaction to occur in radiology since 2008.
No financial details were disclosed.