RadNet, the Sawtelle-based imaging giant, has struck a deal to buy Phoenix-based ONRAD, a company whose radiologists read about 8,000 scans a day, mostly from home. The agreement, announced October 26, calls for ONRAD shareholders to receive $350 million in upfront cash plus RadNet stock, with a potential earnout worth up to $210 million more if ONRAD hits its 2027 financial targets.
The transaction is still just that — an agreement, not a closed deal. According to RadNet, the companies expect the acquisition to close in early 2027, pending regulatory review and other customary closing conditions. The acquisition agreement specifies 5 million shares of RadNet common stock as part of the consideration, a figure that, per the Los Angeles Business Journal, would be worth roughly another $350 million using RadNet's October 26 closing price of $70 a share.
ONRAD, founded in 2006, specializes in hospital-based radiology staffing and teleradiology, supporting more than 225 hospital facilities across 26 states with more than 130 contracted radiologists, RadNet said. Most of those radiologists work remotely, reading images for facilities scattered around the country — a workforce RadNet is betting will fill gaps its own joint-venture partners and hospital clients have struggled with.
Why RadNet Says It Needs More Radiologists
RadNet expects ONRAD to add $190 million to $200 million in revenue and $60 million to $65 million in adjusted EBITDA during its first year under RadNet's ownership, the company said. The Sawtelle-based firm generated roughly $2 billion in revenue last year, and its imaging center network is described as the largest owned-and-operated outpatient radiology network in the nation — though the exact count varies: the Los Angeles Business Journal put the figure at 442 centers, while an October 27 report from Levin Associates cited 407 owned and/or operated centers.
RadNet chief executive Howard Berger framed the ONRAD purchase as a move to turn RadNet into, in his words, a full “one-stop radiology/imaging services company,” the Los Angeles Business Journal reported. Berger said the deal responds to demand from health systems and RadNet's joint-venture partners amid a nationwide shortage of radiology technicians, and that the combination brings together RadNet's technology, radiology professional services, and imaging operations to address broader healthcare challenges. The acquisition is designed to bolster service not just to hospitals and health systems but also to urgent care facilities and freestanding emergency departments.
A Workforce Squeeze Across the Industry
The deal lands amid what RadNet itself described as a mismatch between booming imaging demand and a shrinking supply of trained radiologists, a gap the company said is outpacing available staff nationwide. The Los Angeles Business Journal reported that RadNet pointed to a nationwide radiology technician shortage tied to an aging workforce, noting that nearly one-third of the nation's 36,000 practicing radiologists are over age 55.
Industry surveys back up the strain. The American Society of Radiologic Technologists found computed tomography positions had a 19.4% vacancy rate in 2025, the highest of any discipline in its survey, with 65.0% of respondents reporting turnover in their departments over the prior year. Separately, the American College of Radiology Bulletin reported that U.S. radiologist attrition more than doubled between 2014 and 2022, climbing from 1.1% to 2.5% annually.
Rivals Are Chasing the Same Fix
RadNet isn't the only major player betting on consolidation to solve the staffing crunch. Radiology Partners announced its own agreement on August 25 to acquire Everlight Radiology, a teleradiology provider whose network spans more than 800 radiologists across over 40 countries, serving more than 340 client organizations and reading over 2.5 million exams a year, according to Radiology Partners. That deal, too, remains subject to regulatory approval. Radiology Partners was separately reported to be seeking a $485 million term loan to help fund the Everlight purchase, according to Radiology Business.
For RadNet, the ONRAD acquisition is a wager that AI-enabled digital health technology paired with on-the-ground imaging center expertise can help absorb a radiologist shortage that shows no sign of easing. Whether the deal closes as expected in early 2027 — and how its final value shakes out once the share math is settled — remains to be seen.
