- Radiology Partners, the largest radiology practice in the U.S., announced it raised $700 million from Starr Investment Holdings
Radiology Partners — the largest radiology practice in the U.S. — announced that Starr Investment Holdings (SIH) has invested around $700 million of long duration capital in the practice to support its continued growth, including future practice and hospital system partnerships as well as investments in clinically-focused technology and innovation. RP physicians are also expected to participate in the funding round.
SIH — which focuses primarily on market-leading technology-enabled healthcare services businesses — is going to be joining RP’s Board of Directors. And Geoffrey Clark SIH is joining Mohamad Makhzoumi of existing investor New Enterprise Associates (NEA) as the only two institutional investors on RP’s 11-member board. The board is led by RP Chairman and CEO Rich Whitney and it also includes 6 independent directors, 2 of whom are physicians along with 2 additional non-independent physicians.
“We are excited to welcome SIH as a new financial and strategic partner, and believe this successful fundraising is both a reflection of our team’s accomplishments to-date as well as an endorsement of our strategy and enormous long-term potential to add value to the healthcare system,” said Whitney in a statement. “Thanks to our many talented and passionate physicians and support team members and the commitment of our founding investment partner NEA, RP holds a clear leadership position in our market. I am more excited by the opportunities ahead of us than at any time since our founding six years ago.”
RP has experienced significant organic and partner-led expansion. And over the past 6 months, RP has expanded into Las Vegas, Nevada; Austin, Texas; Greensboro, North Carolina; and Atlanta, Georgia as well as the New Jersey/Pennsylvania market.
“Radiology serves as a critical gateway in guiding appropriate downstream healthcare interventions, and RP is playing a pivotal role in managing the direction, coordination, and delivery of proper care,” added Clark. “RP is developing new models and technology to positively impact patient care and drive value. We share RP’s vision of a physician-led business and are excited to become a part of what we consider to be a world-class team, helping to support RP in expanding its leadership position.”
RP also added 30 new client sites and has deepened its capabilities in radiology consulting, IT, and revenue cycle management services. And this latest additional financing follows the previously announced $234 million equity raise in March 2018 and $200 million equity raise in May 2017.
“This new investment from a premier institutional partner is a testament to our team’s strength and ability to meet the needs and expectations of our patients, referring physicians, clients and the 1,400+ radiologists who choose to be part of our practice,” explained Dr. Rod Owen — the President and Board Chair at Scottsdale Medical Imaging, Co-Executive Vice-President of Southwest Diagnostic Imaging, and RP Director. “We are deeply focused on our mission to transform radiology, and this new investment will support our programs to develop great physician leaders and drive innovation to enhance the clinical value our practice delivers, all while maintaining local autonomy for physicians.”
Barclays served as exclusive financial advisor and Goodwin Proctor as legal counsel to RP. And TripleTree served as financial advisor and Kirkland & Ellis served as legal counsel to SIH.
