Direct Radiology Says Teleradiology Patent Infringement Suit Intended to Intimidate Competition

KIRKLAND, Wash., Aug. 29, 2013 -- Direct Radiology, LLC, ("DR") a national physician-owned and operated teleradiology partnership, says a patent lawsuit filed by Virtual Radiologic ("vRad") and NightHawk Radiology Services ("NightHawk") is unfounded and represents an attempt to stymie market competition from smaller, more responsive, physician-driven companies.

The lawsuit, filed in the United States District Court for the District of Arizona, alleges that DR infringes on vRad's patent rights by using technology provided by Tandem Radiology, a company created by former NightHawk employees.

"The lawsuit is without merit, and we have already begun the process of vigorously disputing the claims," said Lawrence Bub, M.D., a neuroradiologist and one of three founding principals of DR. "The lawsuit will have no impact on our day-to-day operations or our ability to deliver the levels of service and quality our customers have come to expect."

"The teleradiology market is changing," said Kyle Henneberry, M.D., another DR founding principal. "Radiology groups are moving away from larger corporations and toward taking back their own night coverage or switching to smaller, more personal physician partnerships whose operations more closely resemble their own, and who can offer improved service levels at lower cost. We would prefer to compete in the market, but we are prepared to defend ourselves in the courtroom."

"We are radiologists and our focus will remain on our patients," said DR's third co-founding principal, John Arias, M.D. "We have received tremendous support from the radiology community since the lawsuit was announced. DR will vigorously defend itself against these unfounded charges."

About Direct Radiology:

Founded in January 2012, Direct Radiology is a physician-owned and operated teleradiology practice of 30 radiologists and 20 support staff working in close partnership with more than 70 facilities across the country. Teleradiology is an emerging field where medical imaging studies are electronically transmitted from one location to another for evaluation by a radiologist or other doctor. Unlike most teleradiology companies, DR's physicians are partners and stakeholders in the practice with a focus on customer service and high-quality patient care.