Private equity expands in radiology with over 150 acquisitions in a decade

Private equity investment in radiology has surged, with firms acquiring more than 150 radiology practices covering nearly 3,500 locations across the U.S. between 2013 and 2023, according to a study published in the American Journal of Roentgenology.

The research, conducted by Brown University’s Mihir Khunte and Yashaswini Singh, PhD, highlights private equity’s growing presence in diagnostic imaging. The study found that 11.7% of U.S. radiologists were private equity-employed by 2023, up from just 0.88% in 2013. States with the highest percentage of radiologists under private equity ownership include Nevada (46.5%), Arizona (44.2%), and Texas (26.9%).

Radiology Partners leads the sector, employing 70.4% of private equity-affiliated radiologists, followed by LucidHealth (8.2%) and U.S. Radiology Specialists (6.7%). The study also reported that private equity-backed practices accounted for 16% of the nation’s 21,556 imaging locations.

Researchers attribute radiology’s appeal to private equity to its reliance on advanced technology, increasing demand, and strong reimbursement rates. While private equity investment may enhance IT infrastructure and expand imaging access, the long-term effects on healthcare delivery, patient outcomes, and workforce dynamics remain unclear.

Khunte and Singh emphasize the need for further research on private equity’s impact on radiology, including its role in secondary buyouts and regional market trends driving investor interest.