Orlando Regional and MCRG acquire Boston Diagnostic Imaging

A 65-year partnership resulted in a first-of-its-kind joint venture that expands Orlando Health’s outpatient offerings for Central Floridians.

Subsidiaries of Orlando Health and Medical Center Radiology Group (MCRG), a radiology practice group affiliated with the hospital system since 1949, created OHRI LLC to purchase Boston Diagnostic Imaging. The Orlando-based outpatient diagnostic center has five outpatient imaging locations in Central Florida – two in Ocoee, and one each in Altamonte Springs, downtown Orlando and Sanford. 

“Because of changes in the healthcare arena prompted by the Affordable Care Act, there’s been a necessity to offer cost-effective and quality care in the outpatient setting, and we felt a partnership was overdue in this arena,” said MCRG president Kathryn Garrett, MD, a member of the 38-physician group for 26 years. “When we approached Orlando Health and asked if we could come up with a plan to acquire Boston Diagnostic Imaging, hospital leaders were very open to the conversation. It took us a little while to figure out how to do it, but it was imperative that both our organizations expand in the rapidly growing outpatient market to meet the needs of Central Floridians.”

MCRG is the diagnostic radiology, interventional radiology and nuclear medicine hospital-based group for Orlando Health’s eight wholly-owned and partnership hospitals.

Last month, OHRI assumed operations of Boston Diagnostic Imaging, a practice with two full-time and several part-time radiologists. OHRI will oversee all operational, clinical, and fiscal responsibilities of the centers and also determine their strategic direction. The five centers provide a diverse range of outpatient imaging services, including digital mammography, PET scans, and an open MRI.

“This is a brand new acquisition and venture to us … right now, we’re leaving everything the same,” said Garrett. “Over the longer term, we’ll look at the services being offered and may make changes as we respond to community needs and progress accordingly.”

Wayne Jenkins, MD, president of Orlando Health Physician Partners, said the acquisition provides Central Florida physicians and patients “the best of both worlds.”

“They now have access to high-quality inpatient imaging services by MCRG at Orlando Health facilities, and top-notch outpatient imaging services by MCRG at five convenient locations throughout our community,” he noted.

Garrett pointed out the acquisition marks one of the first times Orlando Health has partnered with one of their physician groups to joint venture into the outpatient arena.

“They put a lot of faith and trust in us, and it’s something we really appreciate,” she said. “We’re very happy to be able to joint venture with the healthcare system.”

The acquisition will allow OHRI to provide a more cost-effective approach to high-quality radiology services through Boston Diagnostic Imaging centers, said Garrett.

“Patients will continue to receive the same quality reads we’ve been giving for 65 years, with physicians they’ve come to know and trust,” she said.

In the last few years, Orlando Health has been aggressively expanding in the marketplace with major acquisitions. In 2012, the $2.1 billion not-for-profit healthcare organization acquired Health Central Hospital for $181.3 million. The West Orange Health District recently awarded Orlando Health a $13.8 million grant to expand Health Central to increase bed count, expand specialized care areas and convert hospital beds to all private rooms.

In 2013, Orlando Health purchased Orlando-based Physician Associates, one of Florida’s largest practice groups, for an undisclosed sum. Orlando Health declined to disclose terms of the joint venture acquisition of Boston Diagnostic Imaging.