RadNet and Kennedy Health System Announce Multi-Faceted Agreement for Radiology Services in Southern New Jersey

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LOS ANGELES, April 9, 2014 (GLOBE NEWSWIRE) -- RadNet, Inc. (Nasdaq:RDNT) and the Kennedy Health System today announced a multi-faceted agreement to provide radiology services throughout southern New Jersey.

The agreement, which goes into effect May 1st, will achieve several objectives. RadNet, through its Imaging On Call subsidiary, will provide professional radiology services at Kennedy's three hospitals (in Cherry Hill, Stratford and Washington Township, NJ), as well as at its Outpatient Medical Imaging Center in Washington Township, NJ. These professional radiology services will include 24 hour-a-day, seven-days-a-week radiology coverage, both on-site and off-site via teleradiology services.

In addition, a joint venture will be established to create a medical imaging network to provide services to the communities of southern New Jersey. This network will include Kennedy's outpatient imaging locations, RadNet's Haddon Heights imaging facility, and future acquisitions, along with the development of new southern New Jersey imaging facilities. The joint venture will contract on behalf of its imaging network with regional payors, including commercial insurance companies, utilization and radiology benefit managers, workers' compensation carriers and all other health plans and local insurers.

RadNet will also provide Kennedy's inpatient and outpatient radiology departments with management services that focus on reducing costs, improving operational efficiencies, assisting in the selection of appropriate radiology equipment and other functions, such as information technology, marketing, utilization review, billing and collecting, transcription, medical records management, equipment maintenance, purchasing and insurance. This arrangement will implement best practices across all the networked imaging facilities and hospitals, with the ultimate objective of improving quality of service and patient care while reducing costs.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, "We are very pleased to announce our new relationship with the Kennedy Health System. This partnership augments our existing relationship with Barnabas Health in Northern and Central New Jersey, and furthers our goal of creating a statewide contracting network among our collective locations. With the advent of Accountable Care Organizations (ACOs) -- whose goal it is to improve integration among healthcare providers -- our venture is an important step in delivering a fully integrated imaging network that will provide convenient, high-quality, cost-effective and patient-centric solutions for the communities of southern New Jersey."

Dr. Berger added, "By combining its existing market presence with RadNet's expertise and existing New Jersey outpatient imaging centers, we are convinced that our collaboration will drive benefits to patient care. In the process, we believe that improving patient care will inure financial benefits to both RadNet and Kennedy Health."

Joseph W. Devine, Kennedy's President & Chief Executive Officer, said the joint venture with RadNet "provides an exciting opportunity for our healthcare organization to better serve the community." "Diagnostic Imaging is an important facet of the multi-disciplinary approach we take in providing high-quality services throughout South Jersey," Devine said. "We look forward to pursuing new avenues of growth and patient care with RadNet."

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 250 owned and/or operated outpatient imaging centers. RadNet's core markets include California, Maryland, Delaware, New Jersey, New York and Rhode Island. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 6,300 employees. For more information, visit http://www.radnet.com.

About the Kennedy Health System

Kennedy is a health services delivery system serving the communities of southern New Jersey. Kennedy meets the community's healthcare needs with services at its hospital campuses in Cherry Hill, Stratford, and Washington Township and at outpatient facilities throughout Camden and Gloucester counties.

Kennedy University Hospital is the Principal hospital of the Rowan University School of Osteopathic Medicine (RowanSOM). Kennedy is also a member of the Penn Cancer Network and the Jefferson Neurosciences Network (JNN). For more information, visit www.kennedyhealth.org

CONTACT: RadNet, Inc. Mark Stolper, 310-445-2800 Executive Vice President and Chief Financial Officer Kennedy Health System Nicole Pensiero, 856-566-5305 Corporate Director, Communications

Source:RadNet, Inc.