RadNet Creates an Operating Platform in Phoenix, Arizona through a New Joint Venture with Dignity Health/CommonSpirit Health
LOS ANGELES, Oct. 27, 2020 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services today reported it has expanded operations into Arizona by establishing its third outpatient radiology joint venture with CommonSpirit Health and completing the acquisition of AZ Tech MRI & Radiology, an eight location multimodality radiology practice. The Phoenix, Arizona venture expands the existing commitment of RadNet and Dignity Health, which is part of CommonSpirit Health, to provide high-quality imaging services to targeted medical communities and patient populations.
With this new joint venture, to be known as Arizona Diagnostic Radiology Group, RadNet has established an operating platform in the Phoenix metropolitan area, a rapidly growing market and home to almost five million people. Under the joint venture, RadNet and Dignity Health will develop a network of multi-modality outpatient imaging centers, expanding the geographic coverage of the acquired locations through a combination of new site development and acquisition of existing radiology providers. This network of centers will provide high quality, accessible imaging services in and around the communities served by the Dignity Health hospitals and medical group practices in the Phoenix area. The imaging locations provide multimodality radiology including MRI, CT, Mammography, PET/CT, Ultrasound, X-ray, and Nuclear Medicine.
Dr. Howard Berger, Chairman and Chief Executive Officer of RadNet, noted, “We are pleased to announce both our entrance into a new geographic market and the expansion of our relationship with Dignity Health. In 2016, we began our partnership with Dignity Health, which we have expanded and grown in California. We are now moving our relationship with Dignity Health into Arizona, where we will continue to grow our shared vision and operating strategy for outpatient diagnostic imaging. Dignity Health is a leading health system in Phoenix, and operates multiple hospitals, medical groups, and specialty care locations in that marketplace from which we can leverage our operations. I’m certain that the Dignity Health relationships and outreach into the local communities will bring great value to the newly created partnership.”
Dr. Berger added, “RadNet’s strategy continues to be one that leverages geographic concentration and densely clustered facilities where we can benefit from scale, operating efficiencies, organic expansion and accretive acquisitions. The platform which we now have established in Phoenix exemplifies all these characteristics and is further enhanced by the involvement and support of our joint venture partner, Dignity Health. We are committed to the greater Phoenix marketplace and have already identified opportunities to expand our capacity and footprint.
“Dignity Health is excited to work with RadNet in Arizona. Our presence in Phoenix, which includes six acute care hospitals and approximately 40 joint ventures, positions our partnership for success. Dignity Health’s commitment to the Phoenix healthcare marketplace is exemplified by our enthusiasm to grow diagnostic imaging to serve our valued patients and physicians,” added Jeff O’Malley, CommonSpirit Health’s System Vice President, Strategic Growth & Governance.
About RadNet, Inc.
RadNet, Inc. is the leading national provider of freestanding, fixed-site diagnostic imaging services in the United States based on the number of locations and annual imaging revenue. RadNet has a network of 332 owned and/or operated outpatient imaging centers. RadNet's core markets include California, Maryland, Delaware, New Jersey, New York, and now Arizona. In addition, RadNet provides radiology information technology solutions, teleradiology professional services and other related products and services to customers in the diagnostic imaging industry. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of over 8,600 employees. For more information, visit http://www.radnet.com.
About Dignity Health in Arizona
Dignity Health in Arizona includes six acute care hospitals: Chandler Regional Medical Center, Mercy Gilbert Medical Center, St. Joseph’s Hospital and Medical Center, St. Joseph's Westgate Hospital, Arizona General Hospital - Laveen and Arizona General Hospital - Mesa. From this foundation, Dignity Health in Arizona has expanded into a comprehensive health care system, which includes clinics, specialty hospitals, urgent cares, insurance providers, an accountable care organization and other clinical partnerships. The Dignity Health Medical Group includes hundreds of physicians in Arizona and a wide range of specialties. Dignity Health in Arizona is part of CommonSpirit Health, one of the nation’s largest health care systems.
CONTACTS:
RadNet, Inc.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer