RadNet re-writes imaging business model
Outpatient diagnostic imaging center provider RadNet has created a new business model with the acquisition of PACS provider eRad. RadNet CEO Howard Berger, MD, discussed the rationale for the company’s entry into the radiology software business and hinted at future directions during a Sept. 14 shareholder update.
RadNet’s strategy is three-fold, explained Berger. The acquisition of Greenville, S.C.- based eRad allows RadNet to diversify its revenue base, enhance operating revenue and offer its core competencies to other radiology groups.
Los Angeles-based RadNet plans a fast track transition to eRad software and expects all of its 191 facilities will deploy eRad by the end of 2011. The move eliminates PACS leasing costs and is projected to save RadNet $20 million over 10 years, said Berger.
The acquisition enhances prospects for growth in other ways as well. RadNet complemented the buy with a new software development team. The new division, led by Chief Information Officer Ranjan Jayanathan, will create radiology workflow technologies for RadNet facilities and the larger industry. By controlling and accelerating future software development, RadNet expects to boost productivity and enhances its margins.
Berger and Jayanathan discussed potential future directions for the company beyond imaging center management and software development. These include teleradiology, joint ventures with hospitals and creative management of inpatient and outpatient imaging services. RadNet also plans to integrate digital image management software with electronic medical records and seek stimulus funds that relate to its health IT initiatives.
RadNet’s strategy is three-fold, explained Berger. The acquisition of Greenville, S.C.- based eRad allows RadNet to diversify its revenue base, enhance operating revenue and offer its core competencies to other radiology groups.
Los Angeles-based RadNet plans a fast track transition to eRad software and expects all of its 191 facilities will deploy eRad by the end of 2011. The move eliminates PACS leasing costs and is projected to save RadNet $20 million over 10 years, said Berger.
The acquisition enhances prospects for growth in other ways as well. RadNet complemented the buy with a new software development team. The new division, led by Chief Information Officer Ranjan Jayanathan, will create radiology workflow technologies for RadNet facilities and the larger industry. By controlling and accelerating future software development, RadNet expects to boost productivity and enhances its margins.
Berger and Jayanathan discussed potential future directions for the company beyond imaging center management and software development. These include teleradiology, joint ventures with hospitals and creative management of inpatient and outpatient imaging services. RadNet also plans to integrate digital image management software with electronic medical records and seek stimulus funds that relate to its health IT initiatives.