Riverside Radiology and Interventional Associates (RRIA), a 90-physician private practice based in Columbus, Ohio, has reached an agreement with Denver-based private equity company Excellere Partners to grow the practice’s managed services organization (MSO), Premier Imaging Ventures (PIV).
Through its investment in PIV, Excellere will help the practice bring to market its proprietary workflow platform, develop growth initiatives in existing and new markets, and build collaborative relationships with other radiology practices across the country, according to a press release. The size and details of the investment are bound by confidentiality agreements.
“The model that we have created maintains physician ownership and leadership of the clinical practice, provides compelling shareholder opportunities for younger physicians, and significant equity ownership for current and future physician-partners,” said Mark Alfonso, MD, CMO, RRIA.
According to David Kessenich, Excellere co-founder and managing partner, the company has had its eye on radiology for several years as a health care segment in which to execute its “value creation strategy.”
“This partnership is perfectly aligned with our firm’s founding philosophy to invest in entrepreneurial healthcare businesses that are focused and dedicated to providing high quality patient care; while also creating value for the physicians, facilities, and payors,” said Kessenich, in a prepared statement. “Together, Riverside and Excellere will further strengthen the company’s presence, not only in Ohio, but in other attractive geographies by partnering with other leading radiology practices and expanding its service offerings.”
Financial details of the partnership are confidential, but Excellere is focused on middle-market companies with $25 to $100 million in sales, according to a 2011 article in the Denver Post. It looks for entrepreneurs seeking to “take money off the table” but also intent on staying involved to grow the business, according to the article.
One of its earliest investments was the urgent-care provider Med-Express. Typically, Excellere leaves the acquired company with a 30% to 40% stake, according to the article.
RRIA developed its reading platform, RadAssist, over more than a decade to solve problems associated with providing subspecialized radiology across multiple PACS for multiple hospital clients. RRIA provides more than 1.6 million interpretations and serves 26 hospital clients.
“This progressive decision to align with a trusted, well respected, visionary investment partner demonstrates our enterprise-wide commitment to keeping the patient at the center of all we do,” said Marcia Flaherty, CEO of RRIA and PIV, in a prepared statement. “Our partnership with Excellere is consistent with our goals of remaining physician-owned and physician-led and offers an exciting future for our younger physician-partners.”
RRIA was a founding member of the radiology consortium Strategic Radiology and will maintain its membership.