RadNet, Inc. Announces a Comprehensive Radiology Services Agreement in Southern California with Pioneers Memorial Healthcare District
FOR IMMEDIATE RELEASE
LOS ANGELES, California, June, 1, 2011 -- RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective diagnostic imaging services through a network of 206 owned and operated outpatient imaging centers, announced today that it has executed a series of agreements to provide a comprehensive array of radiology services to Pioneers Memorial Healthcare District and related parties in the Imperial Valley region, east of San Diego, California. Among the various agreements, RadNet and Pioneers have established a joint venture to operate a 12,000 square foot multi-modality outpatient imaging center, and RadNet’s Imaging On Call and eRAD subsidiaries will provide in-patient and outpatient teleradiology and information technology services both to Pioneers Memorial Hospital and to the newly created joint venture outpatient center. Additionally, RadNet and Pioneers are in development to create a Breast Disease Management center to include RadNet’s BreastLink oncologic services.
Under the joint venture, RadNet and Pioneers will build a multi-modality outpatient imaging center, projected to be completed in 2012, to provide state-of-art medical imaging services to the residents of the southern Imperial Valley regions of Brawley, El Centro and surrounding communities, an area encompassing approximately 160,000 residents. The joint venture facility will be the first full-service free-standing medical imaging center in this region, providing MRI, PET/CT, CT, Ultrasound, X-ray and digital mammography. RadNet will manage the day-to-day operations of the outpatient joint venture, including oversight and responsibility relating to staffing, equipment provision, equipment service, sales and marketing, human resources, contracting, transcription, medical coding, billing and collecting, among other functions. Imperial Valley Radiology Medical Group, an existing radiology group servicing Pioneers, will provide professional radiology services to the new imaging center.
Norman Hames, Executive Vice-President and Chief Operating Officer, Western Operations for RadNet, commented, “Given our experience with building and operating free standing multi-modality imaging centers, our reputation for providing quality medical services and our excellent relationships with insurance payers, we believe local physicians and their patients will make this new center their preferred destination for medical imaging needs. Pioneers Memorial Hospital is the premier acute care facility in the Imperial Valley and has an excellent reputation with patients and community physicians. We are excited about affiliating with Pioneers in this venture.”
Also under the agreements, Imaging On Call, a subsidiary of RadNet acquired in January 2011, will provide sub-specialty offsite radiology interpretation and after-hours teleradiology support to Pioneers Memorial Hospital and to Imperial Valley Radiology Medical Group. This will enable Pioneers and the newly created outpatient imaging center to access around-the-clock sub-specialty radiology services. Among other capabilities, this service will facilitate the routing of images to radiologist sub-specialists who are best equipped to interpret those exams, regardless of where they reside.
Also under the comprehensive arrangement with Pioneers, eRAD, Inc., a subsidiary of RadNet acquired in late 2010, will install and support a state-of-the art Picture Archiving and Communication System (PACS) and a Radiology Information System (RIS) in Pioneers Memorial Hospital and in the newly created joint venture outpatient center. The eRAD solution includes voice recognition software to improve report response time and reduce the cost of medical transcription. The eRAD solution will also enable local and remote radiology sub-specialists to view and interpret images via the internet, and will permit referring physicians to access reports and images electronically.
RadNet and Pioneers are also in development regarding a Breast Disease Management center, which incorporates RadNet’s BreastLink services. This would include specialized breast imaging, biopsy and interventional radiology capabilities, medical oncology, breast surgery and breast reconstruction.
Pioneers Chief Executive Officer, Richard Mendoza, stated, “We are excited about establishing a broad-based radiology partnership with RadNet, and are confident that RadNet’s expertise and innovative services will allow us to significantly expand the scope of imaging services at the hospital and in the community. Combining the strengths of the presence and reputation in the community of Pioneers and Imperial Valley Radiology Medical Group with RadNet’s diversified radiology capabilities, we project the result will improve healthcare delivery in the southern Imperial Valley.”
Dr. Howard Berger, President and Chief Executive Officer of RadNet, stated “This is the first of the multi-disciplinary strategy we hoped to pursue when we broadened RadNet’s scope into information technology and teleradiology beginning late last year. We believe that RadNet is uniquely positioned to serve the radiology needs of virtually any hospital, health system or Accountable Care Organization, regardless of whether or not they reside in any of RadNet’s core markets. Our continuum of services allows our partners to access the solutions they need to solve the many problems that they face today within radiology. We will continue to aggressively pursue with other partners the joint venture model illustrated in this multidimensional approach with Pioneers.”
About RadNet, Inc.
RadNet, Inc. is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of 206 fully-owned and operated outpatient imaging centers. RadNet's core markets include California, Maryland, Delaware, New Jersey and New York. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 4,500 employees. For more information, visit www.RadNet.com.
About eRAD, Inc. (a division of RadNet, Inc.)
eRAD was founded in 1999 and offers a standards-based, web-centric image management solutions using leading-edge technology. eRAD PACS web-accessible archive, and workflow solutions are installed in over two-hundred sixty customer sites throughout the USA. eRAD's PACS, RIS/PACS and teleradiology solutions integrate full-featured RIS/PACS and image management with workflow tools for hospitals, clinics, imaging centers and physician practices. In October of 2010, eRAD was acquired by RadNet, Inc. For more information, visit www.eRad.com.
About Imaging On Call (a division of RadNet, Inc.)
Founded in 2002, Imaging On Call, headquartered in Poughkeepsie, New York, is a premier provider of high quality, cost effective emergent and non-emergent daytime and nighttime teleradiology interpretations delivered to radiology groups, hospitals and imaging centers. Imaging On Call’s offerings include preliminary, final and subspecialty coverage over a range of imaging modalities including CT, MRI, Ultrasound, Nuclear Medicine and X-ray. Imaging On Call currently contracts with hospital-based and non-hospital based radiology groups, hospitals, imaging centers and research foundations, to whom it provides remote interpretation of diagnostic imaging exams. Imaging On Call is Joint Commission–accredited for final and preliminary reads and its currently contracted radiologists, the vast majority of whom are located in the United States, hold active licenses in 28 states and the District of Columbia. For more information, visit www.ImagingOnCall.net
About BreastLink (a division of RadNet, Inc.)
Founded in 1995, BreastLink is a multi-disciplined provider of the diagnosis and treatment of all forms of breast cancer and breast disease. The Breaslink practice incorporates imaging, medical oncology, surgery, reconstruction and other services into a comprehensive and teamwork treatment approach. Currently, Breastlink operates in six California locations. For more information, visit www.BreastLink.com.
RadNet, Inc.
Mark Stolper
Executive Vice President and Chief Financial Officer
310-445-2800
