Pittsburgh’s Foundation Radiology raises $4M in Series B round

MedCity News, February 1, 2010, by Brandon Glenn

PITTSBURGH, PennsylvaniaFoundation Radiology Group has raised a $4 million Series B round of funding, according to a regulatory filing.

Louisville, Ky.-based Chrysalis Ventures led the round, accompanied by Health Evolution Partners and Foundation’s management team.

The company plans to use the funding to further invest in its technology and “expand its geographic footprint,” said Koleman Karleski, a managing director with Chrysalis, via e-mail.

Foundation is an imaging services company that has on-site and teleservices for hospitals and other health centers. Its services include neuroradiology, mammography, cardiac CT, pediatric radiology and general radiology, among others. Karleski said the company’s teleradiology services allow specialists to be “highly productive” compared with industry standards.

In April, Foundation pulled in from the same investors a $10 million Series A round that it planned to use to hire new radiologists and expand its diagnostic imaging and radiology services office.

Foundation “grew rapidly” last year and expects to continue that growth in 2010, Karleski said.

Earlier this month, Foundation announced a partnership in which it will provide imaging services to Leighton, Pa.-based Blue Mountain Health System.

Asked about Chrysalis’ exit plans for Foundation, Karleski said it’s “premature to speculate” on the matter. “However, most fast-growing, profitable companies have many strategic options, including future financing via a public offering and sale to a host of strategic acquirers eager to own valuable assets,” he said. “Let’s revisit this question in the coming years.”

Pittsburgh’s health industry received a bit of encouraging news last week courtesy of a report from Cleveland health care economic development group BioEnterprise. The group’s report on 2009 health care investment in the Midwest revealed that the Iron City had more start-ups, 24, that received cash than any other in the region. Overall, Midwest health care start-ups attracted $780 million in funding last year, a decline of 26 percent from the prior year.

The medical device and health IT company Emageon is a previous investor in Foundation.

In addition to its Louisville headquarters, Chrysalis has offices in Cleveland, Pittsburgh and Ann Arbor, Mich.