VRAD IS FOR SALE: WHAT DOES THIS MEAN FOR RADIOLOGY? / by Timothy Myers

VRAD IS FOR SALE: WHAT DOES THIS MEAN FOR RADIOLOGY?

Diagnostic Imaging

Blog | March 27, 2015 TeleradiologyPractice Management

By Tim Myers, MD

On March 12, 2015, an article published on Dow Jones’ Private Equity & Venture Capital news and data portal reported that Newstone Capital Partners and Blackstone Group’s GSO Capital Partners had retained Credit Suisse Group to begin the sales process for Virtual Radiologic (vRad). This ends months of insider speculation regarding the future of the largest corporate provider of national teleradiology services, which began to surface even before RSNA in November 2014.

The article, “Newstone, Blackstone’s Credit Arm Hire Credit Suisse to Find Buyer for vRad,” suggests vRad’s slow march to the auction block has been anything but inevitable. But despite merging with Nighthawk Radiology Services via Providence Equity Partners in 2011, along with other advantages, the article goes so far as to describe “years of turmoil,” decreasing profit margins, and “client attrition [that] nearly drove the company to bankruptcy protection,” with equity from Providence being “largely wiped out.”

- See more at: http://www.diagnosticimaging.com/teleradiology/vrad-sale-what-does-mean-radiology#sthash.dSqEKkAc.dpuf