New name in the I-Med network fold
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Tuesday, 5 February, 2002 - 21:00
A DEAL struck between Perth Radiological Clinic and national healthcare group DCA Group should be settled in the next month, adding a new player to the I-Med network.
I-Med’s plan to list in the October-December Quarter this year might have been the sweetener needed to convince the 53-year-old practice to join the network.
I-Med is 80 per cent owned by DAC Group.
The deal comes less than four months after local market leader SKG announced a merger with corporate healthcare giant Sonic Healthcare.
Sonic has about 50 per cent of the market in Perth compared with PRC’s market share of about 27 per cent. PRC is one of Perth’s oldest radiological clinics and has revenue of approximately $32 million from 11 clinics in WA.
It is understood I-Med will acquire up to 27 per cent of PRC, which allows the 13 partners in PRC to retain control of the clinic’s growth.
I-Med co-chairman David Vaux said the addition of PRC to the network would help it exceed $175 million in consolidated annualised revenue.
“We think that PRC is an excellent practice,” Mr Vaux said.
“We’re certainly looking to fully support the future.
“We don’t have a specific target (for growth) but we think there’s good opportunities for growth.”
The advantages of joining the network for PRC lie in the national purchasing agreements negotiated with suppliers, I-Med claim.
“In due course it (PRC) will take advantage of deals with IT and equipment,” Mr Vaux said.
“And we are looking at listing in the October December quarter.”
A listing will provide obvious benefits to the shareholders and offer the opportunity for clinics such as PRC to raise capital to fund further growth.
Mr Vaux confirmed the group was not targeting any other clinics in WA at the moment.
The corporate business model has not always provided an easy fit for healthcare providers.
Local group Endeavour has recently refocused on the group’s assets in NSW and WA after their national expansion failed to deliver the expected returns.
The group’s founder, Garry Garside, has recently quit the company following moves by the major investors to refocus the business.
It is understood that Mr Garside felt the company needed to take a longer term view of the business.
Endeavour recently sold its Melbourne assets to Mayne Nickless in a deal understood to be worth more than $15 million.
And there is talk of selling off a number of other Victorian assets.
I-Med’s plan to list in the October-December Quarter this year might have been the sweetener needed to convince the 53-year-old practice to join the network.
I-Med is 80 per cent owned by DAC Group.
The deal comes less than four months after local market leader SKG announced a merger with corporate healthcare giant Sonic Healthcare.
Sonic has about 50 per cent of the market in Perth compared with PRC’s market share of about 27 per cent. PRC is one of Perth’s oldest radiological clinics and has revenue of approximately $32 million from 11 clinics in WA.
It is understood I-Med will acquire up to 27 per cent of PRC, which allows the 13 partners in PRC to retain control of the clinic’s growth.
I-Med co-chairman David Vaux said the addition of PRC to the network would help it exceed $175 million in consolidated annualised revenue.
“We think that PRC is an excellent practice,” Mr Vaux said.
“We’re certainly looking to fully support the future.
“We don’t have a specific target (for growth) but we think there’s good opportunities for growth.”
The advantages of joining the network for PRC lie in the national purchasing agreements negotiated with suppliers, I-Med claim.
“In due course it (PRC) will take advantage of deals with IT and equipment,” Mr Vaux said.
“And we are looking at listing in the October December quarter.”
A listing will provide obvious benefits to the shareholders and offer the opportunity for clinics such as PRC to raise capital to fund further growth.
Mr Vaux confirmed the group was not targeting any other clinics in WA at the moment.
The corporate business model has not always provided an easy fit for healthcare providers.
Local group Endeavour has recently refocused on the group’s assets in NSW and WA after their national expansion failed to deliver the expected returns.
The group’s founder, Garry Garside, has recently quit the company following moves by the major investors to refocus the business.
It is understood that Mr Garside felt the company needed to take a longer term view of the business.
Endeavour recently sold its Melbourne assets to Mayne Nickless in a deal understood to be worth more than $15 million.
And there is talk of selling off a number of other Victorian assets.