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Alliance HealthCare Services Expands Its Technology Services with the Asset Acquisition of OnPoint Medical Diagnostics
Acquisition Enables Alliance to Offer & Expand OnPoint's Automated Medical Imaging Quality Assurance Platform
NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- Alliance HealthCare Services (NASDAQ:AIQ) announces the acquisition of the assets of Vertical Health Solutions, Inc., doing business as OnPoint Medical Diagnostics, a healthcare IT start-up commercializing medical imaging quality assurance technologies. The acquisition will enhance Alliance's full-service radiology capabilities and will broaden and expand OnPoint's existing big data technology platform -- making state-of-the-art, automated monitoring of imaging equipment, quality, operational efficiency, and compliance more broadly available to Alliance's customers and partners.
Launched in February 2012, OnPoint is currently used by 81 hospitals and imaging centers in 30 states, with more than 250 diagnostic imaging systems sending performance data to the OnPoint cloud. OnPoint's cloud-based software automates the quality control process -- allowing hospitals and imaging providers to manage every scanner in their facilities in a fraction of the time required to manually complete the quality control process. With real-time dashboards, analytics, and results trending, OnPoint's artificial intelligence technologies automate the quality control measures required for accreditation by the American College of Radiology. By identifying preventative maintenance opportunities before they impact clinical results and eliminating manual processes and measurements, radiology service providers achieve greater efficiency and control over their equipment, operations, costs, and profitability than ever before.
As part of Alliance's strategic RAD360 vision to help hospitals and healthcare providers optimize their radiology service line including MRI, CT, mammography, nuclear medicine, and ultrasound, the acquisition of the assets of OnPoint expands Alliance's technology solutions available to hospitals, healthcare and radiology service providers.
"The acquisition of OnPoint provides a key opportunity to augment our technology and operational capabilities under our Alliance RAD360 initiative to provide our radiology customers more control over their assets and operations," stated Tom Tomlinson, Chief Executive Officer and President of Alliance HealthCare Services. "Hospitals, imaging centers, accreditation organizations, and insurance companies all want the same thing -- measurable, objective, performance-based quality control technologies that help to ensure image quality and equipment utilization. Integrating these capabilities, through the acquisition of the assets of OnPoint, into our technology solutions offering will provide a new level of control for managing radiology operations."
According to William Cavanaugh, Chairman and Chief Executive Officer of OnPoint, "I believe Alliance's imaging expertise and expansive partner network, combined with OnPoint's big data platform, will fulfill our vision of assisting the global healthcare industry in delivering the highest quality medical images possible -- safely, consistently and efficiently. We are excited that Alliance will take OnPoint's creativity to the next level."
Financial Terms of the Transaction
Under the terms of the acquisition Alliance paid $1 million in cash plus a two-year royalty stream to acquire the majority of OnPoint's assets, which include its quality assurance products for MRI and CT, its big data technology platform and Software-as-a-Service (SaaS) framework, as well as the R&D pipeline, customer contracts, and employees.
About Alliance HealthCare Services
Alliance HealthCare Services is a leading national provider of outsourced radiology and radiation therapy services based upon annual revenue and number of systems deployed. Alliance focuses on MRI, PET/CT and CT through its Imaging division and radiation therapy through its Oncology division. With approximately 1,800 team members committed to providing exceptional patient care and exceeding customer expectations, Alliance provides quality clinical services for over 1,000 hospitals and other healthcare partners in 46 states. Alliance operates 491 diagnostic imaging and radiation therapy systems. The Company is the nation's largest provider of advanced diagnostic mobile imaging services and one of the leading operators of fixed-site imaging centers, with 125 locations across the country. Alliance also operates 28 radiation therapy centers, including 17 dedicated stereotactic radiosurgery facilities, many of which are operated in conjunction with local community hospital partners, providing treatment and care for cancer patients. With 17 stereotactic radiosurgery facilities in operation, Alliance is among the leading providers of stereotactic radiosurgery nationwide.
Source: Alliance HealthCare Services