ONRAD Inc., a Phoenix-based radiology services company, has acquired Direct Radiology, a teleradiology group previously owned by Royal Philips.

The move establishes ONRAD as the largest independent teleradiology provider in the U.S., serving over 550 facilities nationwide.

Direct Radiology, founded in 2012 and accredited by the Joint Commission, brings a network of approximately 80 radiologists who deliver services to more than 430 healthcare facilities. The combined organization will handle over 7,000 studies daily, leveraging a team of over 160 board-certified radiologists.

David Engert, ONRAD’s CEO and president, highlighted the strategic advantages of the acquisition. “This milestone enables us to expand our capacity through operational efficiencies, industry-leading AI, and economies of scale," he said. "It strengthens our ability to deliver high-quality services and address the radiologist shortage."

Direct Radiology will remain a wholly owned subsidiary of ONRAD, with its president, Leandra Hutchinson, continuing in her role and reporting to Engert. Hutchinson expressed optimism about the merger, noting shared goals in advancing AI and innovation to improve patient outcomes.

The acquisition bolsters ONRAD’s capabilities in addressing the increasing demand for imaging services. Its offerings include teleradiology, onsite radiology solutions, subspecialty interpretations, and interventional radiology, available around the clock.

Philips acquired Direct Radiology in 2019, in a move aimed at expanding its teleradiology services footprint.

Financial details of the acquisition were not disclosed.

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