Aurora Makes Two Pathology Acquisitions to Help Boost Growth

Aurora Diagnostics has been on the acquisition trail, buying up two dermopathology practices in the past month. In early June, it acquired Mid-Atlantic Pathology Services, a four-physician practice based in Sterling, Va. Toward the end of the month, it acquired Hallmark Pathology PC, based in Medford, Mass. The terms of the transactions were not disclosed. Both are in states where Aurora does not have any practices. The Florida-based Aurora currently does business in 11 states. Officials with the company were not immediately available to provide any details about the transactions. In a statement, Aurora Chief Executive Officer Daniel Crowley suggested that more deals may be announced soon. “Our strategy is to pursue synergistic and accretive transactions, and we believe there is a robust pipeline of such opportunities,” he said. Aurora may be using its purchasing power to boost its sagging revenue. According to its most recent filings with the Securities and Exchange Commission (SEC), it reported a loss of $6.6 million on revenue of $57 million. For the first quarter of 2013, it reported a loss of $7.7 million on revenue of $61 million. In its SEC filing, Aurora said payment reductions from the Medicare program and increases in expenses have crimped its cash flow. It said it would make acquisitions “which it believes would add to earnings and performance” and help it meet the mandated ratios in order to access its credit facility. Takeaway: Aurora Diagnostics may be using acquisitions to add to its bottom line as opposed to organic growth.