The popularity of radiology practice consolidation is increasing, in part, due to the same catalysts that have driven other outsourced physician groups to consolidate – (a) the need to achieve scale and leverage in order to manage rising costs, (b) technology and (c) regulatory compliance. Strategic and financial buyers alike are particularly interested in the synergy made possible by teleradiology, which aims to improve efficiency, cut costs and deliver effective patient care.

Major deals in this space in 2017 include the following: Mednax (NYSE: MD) acquired Radiology Alliance, Envision Healthcare (NYSE: EVHC) acquired Imaging Advantage, and New Enterprise Associates funneled $200 million into Radiology Partners.