Two more big-name players in radiology services reportedly exploring sales

Two more big-name players in radiology services are reportedly exploring sales on the heels of Mednax just completing its exit from the specialty last month.

Those include Columbus, Ohio-based LucidHealth, which was accepting proposals through Tuesday, PE Hub reported this week. Scottsdale, Arizona-headquartered SimonMed is also on the “auction block” and fielding offers this month, the publication said, citing anonymous sources.

Neither provider immediately responded to a Radiology Business request for common on Tuesday.

Founded by CEO and radiologist John Simon, MD, SimonMed has served its community for some 30 years, according to its website. The practice operates a hybrid model, PE Hub noted, which includes its own large radiology group and 150 outpatient imaging centers, employing more than 200 radiologists, according to its website.

Financial services firm Jefferies is advising SimonMed during the process, with bids due this month, and they’re focused specifically on finding sponsors rather than seeking an outright acquisition. Sources said the practice tallied some $75 million in adjusted earnings before interest, taxes, depreciation and amortization in 2020.

Meanwhile, LucidHealth was founded in part with funds from private equity investment firm Excellere Partners back in 2016. It provides outsourced radiology services to outpatient imaging centers, clinics and hospitals, recently inking such a deal with MercyOne in August.

Physician-led LucidHealth logged about $60 million in EBITDA last year, up from just $16 million two years ago, the report noted. All told, the provider employed some 200 radiologists servicing care sites in five states at the time of the MercyOne announcement.