RadNet to acquire ONRAD for US$355M to expand US hospital radiology services

USA—RadNet has agreed to acquire ONRAD for US$355 million to expand its hospital radiology services and address rising demand for diagnostic imaging amid a shortage of radiologists in the United States.

The California-based outpatient diagnostic imaging provider will pay US$350 million in cash and US$5 million in shares upfront.

The transaction is expected to close in early 2027, subject to the applicable conditions.

RadNet could also pay an additional earnout of up to US$210 million if ONRAD achieves specified earnings before interest, taxes, depreciation and amortisation (EBITDA) targets for 2027.

The additional payment may be made in cash, stock or a combination of both, at RadNet’s discretion.

Jefferies analysts described the acquisition as a sound transaction that could help RadNet expand its relationships with hospitals.

Integrating imaging, AI and radiology services

ONRAD employs 130 contracted radiologists and provides teleradiology, hospital-based radiology and staffing services to hospitals, health systems and other diagnostic imaging providers.

RadNet plans to combine its outpatient imaging network with DeepHealth, its artificial intelligence (AI)-based digital health business, and ONRAD’s radiology services platform.

The integration will bring imaging operations, AI-enabled technologies and professional radiology services under one organisation.

According to RadNet, the combined capabilities are expected to improve operational efficiency, support patient care and reduce costs.

The acquisition will also expand the company’s presence in hospital-based imaging and broaden its service offering to healthcare providers.

RadNet President and CEO Dr Howard Berger said the transaction would bring together the company’s AI-enabled digital health technology and imaging centre expertise with ONRAD’s teleradiology and professional staffing services.

He added that the expanded portfolio would serve hospitals, health systems, independent outpatient imaging centres, urgent care facilities, freestanding emergency departments and physician offices.

Addressing radiologist shortages

The acquisition comes as demand for medical imaging grows faster than the supply of trained radiologists in the US.

A report by the Association of American Medical Colleges projects a potential shortfall of nearly 42,000 radiologists by 2036.

RadNet expects to use its AI technology alongside ONRAD’s remote radiology interpretation and staffing services to improve workflows, prioritise cases and align image interpretation capacity with demand.

Teleradiology enables specialists to interpret medical images remotely, helping healthcare facilities access radiology expertise beyond their immediate locations.

The deal also reflects growing interest in combining AI tools with clinical services to manage increasing imaging workloads.

AI applications can support image analysis and workflow prioritisation, while radiologists remain responsible for clinical interpretation and patient care.

AI adoption in medical imaging

Medical imaging remains a major area of AI adoption in healthcare.

The US Food and Drug Administration’s list of AI-enabled medical devices includes numerous products designed for radiology applications.

GlobalData analysis projects that the broader healthcare AI market will grow at a compound annual growth rate of approximately 37%, reaching US$57.4 billion by 2029.

The market’s expansion is driving interest in technologies that support clinical workflows, improve service capacity, and help healthcare providers manage rising demand.

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