Aurora Diagnostics Enters Into Collaboration With University of Nevada

Aurora Diagnostics has entered into an operational and clinical collaboration with the University of Nevada School of Medicine.

Aurora Diagnostics' Western Pathology division has absorbed the university's laboratory operations at its new laboratory in Reno, where it will also perform the technical component of all pathology services, according to company spokesperson Bill Halldin. Western Pathology will also provide credentialing, contracting, and billing and collection services for all the work originating through the university.

Three Aurora pathologists practicing in the Reno region will also be added to the university faculty. Another Reno pathologist and 26 others practicing in Las Vegas will become adjunct faculty. Aurora will reimburse the university for expenses related to academic support and faculty salaries, according to Halldin. Aurora and the university will also explore clinical research partnerships, the company said.

Marcus Erling, M.D., managing director of Aurora Diagnostics' Western Pathology division, has also been appointed interim chair of the school's pathology and laboratory medicine departments.

"Aurora Diagnostics Western Pathology brings extraordinary depth in the field of anatomic pathology to our school," said Thomas L. Schwenk, M.D., dean of the School of Medicine, in a statement.

No money has exchanged hands as a result of the agreement, other than what is collected by Aurora for services rendered, according to Halldin.

Aurora, which is based in Palm Beach Gardens, Fla., operates laboratory and pathology practices at 23 locations in 15 states, primarily in the Northeast and Southwest. In April, it amended an existing line of credit with Cerberus Business Finance to add $40 delayed draw term loan to fund future acquisitions.

For the first quarter of 2015, Aurora reported a loss of $9.4 million on revenue of $59.5 million, according to a recent filing with the U.S. Securities and Exchange Commission. That compares to a loss of $6.6 million on revenue of $57 million during the first quarter of 2014.

Takeaway: Aurora Diagnostics has entered into an affiliation with a medical school in order to expand its reach in the western U.S.