A new study examining corporate and private equity acquisitions of radiology practices and imaging centers in the United States over an 11-year period found that consolidation activity peaked in 2021, with the South emerging as the most active region.
The research, published in the Journal of the American College of Radiology, highlights the growing role of private equity and publicly traded corporations in the radiology sector.
Between August 2013 and August 2024, 113 acquisitions of radiology practices and imaging centers by corporate-backed entities were identified. The study found that Texas (18 acquisitions) and Florida (15) led the nation in acquisition activity. Additionally, the most commonly acquired practices had between 50 and 99 radiologists.
While corporate consolidation has been a trend across multiple areas of healthcare, its impact on radiology remains a topic of concern. The study cites prior research indicating that private equity ownership has been associated with rising costs in dermatology and reductions in access to urologic care for Medicaid patients.
In radiology specifically, a report by the American Antitrust Institute found that private equity acquisitions were linked to an 8.2% price increase.
The study also noted that acquisitions declined after 2021, though the reasons remain uncertain. Researchers suggest that macroeconomic conditions, rising capital costs, regulatory changes, and the No Surprises Act may have played a role in slowing the pace of consolidation.
The analysis relied on data from Pitchbook and CB Insights, two major market databases. However, the authors acknowledged certain limitations, including the inability to distinguish between acquisitions of imaging centers versus radiology groups, limited disclosure of transaction details, and a lack of financial data on acquisition values.
As corporate entities continue to play a significant role in radiology, the study calls for ongoing monitoring to assess the impact of consolidation on physician practice patterns, patient access, and care quality.