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RadNet and Kennedy Health System Announce the Start of their Diagnostic Imaging Joint Venture and the Acquisition of Two Facilities in Southern New Jersey

LOS ANGELES, Nov. 10, 2014 (GLOBE NEWSWIRE) -- RadNet, Inc. (Nasdaq:RDNT) and the Kennedy Health System today announced the operational commencement of their previously announced multi-faceted Joint Venture in southern New Jersey, with the purchase of two outpatient facilities located at 157 Fries Mills Road, Turnersville, NJ and 999 Route 73 N, Marlton, NJ from Able Imaging.

As previously announced, the Joint Venture -- Garden State Radiology Network, LLC -- was conceived to achieve several objectives. First, it establishes a cost effective, high quality medical imaging network that provides convenient access to the communities of southern New Jersey. This network will include Kennedy's outpatient imaging locations, RadNet's Haddon Heights imaging facility, the two newly acquired Able Imaging locations, along with the development of new southern New Jersey imaging facilities. The joint venture will also 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. Lastly, it will seek to build or buy additional imaging centers or enter related healthcare businesses in southern New Jersey.

This acquisition is an important step forward for the joint venture, as these centers are both full-service, multi-modality facilities featuring a 3 Tesla MRI, CT, digital mammography, bone densitometry, ultrasonography and digital radiographic services. The two newly acquired Able Imaging centers complement RadNet's Haddon Heights location and Kennedy Health System's Washington Township outpatient imaging facility, which includes the operation of PET/CT services.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, "We are excited about commencing our new venture with Kennedy Health System. Together, RadNet and Kennedy Health System have the opportunity to reshape the imaging landscape of southern New Jersey in ways that will benefit patients and referring physicians alike. 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."

Joseph W. Devine, Kennedy's President & Chief Executive Officer, said, "Commencing the previously announced joint venture with RadNet is consistent with our commitment to better serve our medical communities. Diagnostic Imaging is an important facet of the multi-disciplinary approach we take in providing optimal patient care to South Jersey. 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 263 owned and/or operated outpatient imaging centers. RadNet's core markets include California, Maryland, Delaware, New Jersey, New York and Rhode Island. 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 approximately 6,000 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.