St Paul Radiology, Minneapolis, Minnesota, will exit a long-term agreement to provide teleradiology interpretations for NightHawk Radiology, Scottsdale, Arizona, at a price of $26 million, reports the Minneapolis StarTribune.
Under the terms of the agreement, St Paul will buy back its business services unit for $24 million and its emergency teleradiology service for $2 million. The practice sold both units to NightHawk three years ago for $62.5 million, when it signed a long-term agreement with the teleradiology company that included the provision of business services.
“We did not feel that after three years we were especially well suited to operate in that environment and that it distracted us from our core business,” Michael T. Madison, MD, president and CEO, St Paul Radiology, told the newspaper.
Madison also said that the practice would return to its core business of serving local hospitals. Teleradiology represents between 10% and 15% of St Paul’s business.