Trends and Issues in JVs Between Health Systems and Imaging Center Companies

Published by ImagingBiz

Written by Kevin McDonough and Colin Park

Consistent with the observed trends affecting our national health-care market, the diagnostic-imaging industry has been acutely affected by the forces of consolidation. The number of transactions involving diagnostic-imaging centers has grown consistently over the past five years. Most recently, transactions involving the formation of joint-venture arrangements between health systems and large companies operating multiple freestanding imaging centers have become popular.

The underlying driving forces—for both health systems and imaging-center companies, in pursuing such arrangements—are the desires to position their entities better (from economic and quality perspectives) and to protect their existing diagnostic-imaging business from current and future competitive threats. Understanding these factors is critical to anticipating and addressing potential challenges and issues in the pursuit and formation of such joint-venture arrangements.

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