Radiology outsourcing firm Radisphere National Radiology Group Inc. raised $27.5 million in an equity-based Series C investment round, according to a Securities & Exchange Commission filing.
The company will use the funding to invest in its “radii” technology platform, CEO Scott Seidelmann said in a statement.
The company’s business model is to provide radiology services remotely or on-site, enabling hospitals to save money on radiologists and imaging software.
Launched in April by teleradiology company Franklin & Seidelmann, Radisphere is a national practice that offers not only radiology services, but software and workflow technology, and business professionals to help the company’s radiologists deliver quality services.
Co-founded by Dr. Frank Seidelmann in 2003 as a subspecialty teleradiology company, Franklin & Seidelmann blossomed into an all-around radiology services provider that supplemented or staffed radiology departments nationwide through a national network of radiologists.
Radisphere competes more with other radiology groups that serve hospitals rather than with teleradiology firms, which are jostling each other in an increasingly crowded space. Seidelmann, a longtime Cleveland-area radiologist and digital radiology entrepreneur, leads the clinical side of the new company, along with Dr. Peter Franklin, who also founded Franklin & Seidelmann, according to Radisphere’s website.
More than a year ago, Franklin & Seidelmann raised $12.5 million to expand into new markets and add services, though the company declined to discuss the details of its fund-raise, at the time.
Radisphere has 250 clients, according to the statement. Last month, the company announced it recently picked up two California hospitals as clients.
A competing imaging outsourcing company, Pittsburgh-based Foundation Radiology Group, completed a $6 million funding round in July.