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Shining a light on PE ownership.

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RA

Radiology Partners

healthcare
PE-OWNED

The largest radiology practice in the U.S. providing diagnostic imaging and interventional services.

PE-OWNED

Acquired by KKR2017-07-01

View PE Firm Profile

What Made It Great

“

Consolidating fragmented radiology practices with technology and operational efficiency

What PE Will Likely Do

Predictions

Radiology Partners will see a reduction in the number of radiologists and staff, leading to longer wait times for patients to get imaging appointments and scans interpreted

HIGH LIKELIHOODBased on: KKR's track record of cost-cutting and debt-loading in acquired companies

The company will likely try to increase revenue through more aggressive coding and billing practices, leading to higher costs for patients and insurers

HIGH LIKELIHOODBased on: The healthcare industry playbook of PE firms reducing staffing, selling real estate, and upcoding billings

Essential but less profitable radiology services, such as those in rural or underserved areas, may be cut or reduced

HIGH LIKELIHOODBased on: The negative consumer impact score indicating potential harm to patients

Aging or outdated imaging equipment may not be replaced as quickly, leading to decreased image quality and diagnostic accuracy

HIGH LIKELIHOODBased on: The negative consumer impact score indicating potential harm to patients

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcements of 'optimization' efforts and leadership changes

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Staffing reductions begin, service line reviews commence

12-24 months

“12 to 24 months months”

Appointment wait times start to increase, patient complaints rise

24-36 months

“24 to 36 months months”

Quality issues and service cuts become more widespread, potential for regulatory actions

36+ months

“36+ months months”

Possibility of financial distress, facility closures, or sale to another operator

Similar Cases

Other companies that followed a similar path after PE acquisition

Operating

Steward Health Care

Cerberus Capital Management·2010

See full case study
Operating

Envision Healthcare

KKR·2018

See full case study
Operating

US Dermatology Partners

Ares Management·2016

See full case study
Operating

Hahnemann University Hospital

Cerberus Capital Management·2018

See full case study
Operating

Sound Physicians

Summit Partners·2019

See full case study

What You Can Do

Take Action

Actions

  • Monitor for any changes in the number of available radiologists, appointment wait times, and imaging equipment quality

  • Be vigilant for any unexplained increases in medical bills or insurance claims related to Radiology Partners services

  • Consider seeking alternative radiology providers if quality of care or access to services starts to decline

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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"Radiology Partners is now PE-owned. Here's what that means for you."