LOS ANGELES, Aug. 7, 2015 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ:RDNT) and Barnabas Health today announced that they have executed purchase agreements for a major expansion of their existing New Jersey Imaging Networks ("NJIN") joint venture to include NJIN's acquisition of all of RadNet's 10 wholly owned New Jersey imaging centers and Barnabas Health's wholly owned outpatient imaging center in West Orange, New Jersey.
Following the acquisitions, which are expected to close in the third quarter, NJIN will have 18 facilities in northern and central New Jersey and will perform over 330,000 exams on an annual basis, making NJIN the clear leader in outpatient imaging in New Jersey. The acquisitions are subject to customary closing conditions, including the approval of certain New Jersey state licensure bodies and required third party consents, as well as the closing by NJIN of its acquisition financing.
NJIN will continue to be owned 51% by an affiliate of Barnabas Health and 49% by RadNet. RadNet will provide its management expertise and direct the daily operations of the joint venture. In addition, RadNet will provide certain services to the joint venture including, among other functions, information technology through the provision of its eRad RIS and PACs solutions, marketing, billing and collecting, medical records management, equipment maintenance and purchasing services.
NJIN was formed in 2012 to achieve several objectives, all of which are enhanced and furthered by this transaction. First, NJIN set out to establish a statewide diagnostic imaging network and to contract with regional payors, including commercial insurance companies, utilization and radiology benefit managers, workers compensation carriers and all other health plans and local insurers. NJIN also intended to rapidly expand its access points through the acquisition of existing centers, development of new centers or through contracting with third-party imaging providers. NJIN was also designed to capture efficiencies resulting from implementing best practices across all of the networked imaging facilities, with the ultimate objective of reducing costs, benefit from increased purchasing power and improving quality of service and patient care.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, "I am thrilled to announce this transforming event for our existing NJIN joint venture. Since 2012, when we first established the relationship between Barnabas Health and RadNet, we have had great success with growing the relationship from zero to seven centers and establishing a reputation of high quality medicine and service with both the New Jersey patient population and the major regional health plans."
Dr. Berger continued, "This transaction puts us at an entirely new level, and I believe it transforms the New Jersey imaging landscape. The transaction is a major commitment by both RadNet and Barnabas Health to establish a joint and unified approach to pursue opportunities in the New Jersey imaging marketplace. NJIN will now be the clear leader in outpatient imaging services in northern and central New Jersey. We look forward to this transaction as just the start of pursuing more exciting growth initiatives in the future."
"With the advent of Accountable Care Organizations (ACOs), whose goal it is to improve integration among healthcare providers, our venture delivers a fully integrated imaging network that provides convenient, high quality, cost effective and patient centric medical imaging solutions for the medical communities of New Jersey. Barnabas Health is the premier health care system in New Jersey and the ideal partner for us", added Dr. Berger.
Jay Picerno, Chief Operating and Financial Officer of Barnabas Health, stated, "With the changing healthcare landscape and our focus on building healthier communities, we believe a commitment to the expansion of our outpatient and ambulatory facilities is more important than ever. Our joint venture with RadNet, an experienced leader in the field of diagnostic imaging, provides us with the right operating partner to enhance our presence in outpatient imaging throughout New Jersey and deliver the highest quality culturally competent care to the communities we serve."
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 267 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 Barnabas Health
Barnabas Health is the largest not-for-profit integrated health care delivery system in New Jersey and one of the largest in the region, with more than two million patient visits and delivery of more than 20,000 babies annually. The system includes seven acute care hospitals – Clara Maass Medical Center in Belleville, Community Medical Center in Toms River, Jersey City Medical Center in Jersey City, Monmouth Medical Center in Long Branch, Monmouth Medical Center Southern Campus in Lakewood, Newark Beth Israel Medical Center in Newark, and Saint Barnabas Medical Center in Livingston (four are teaching hospitals); two children's hospitals, a freestanding 100-bed behavioral health center, a trauma center, ambulatory care centers, geriatric centers, the state's largest behavioral health network, comprehensive home care and hospice programs, retail pharmacy services, a medical group, multi-site imaging centers and four accountable care organizations. As the second-largest private employer in New Jersey, Barnabas Health includes more than 21,000 employees, over 5,200 physicians, and 500 residents and interns. For more information, visit www.BarnabasHealth.org.
CONTACT: RadNet, Inc. Mark Stolper, 310-445-2800 Executive Vice President and Chief Financial Officer Barnabas Health Jay Picerno, 973-322-4102 Executive Vice President and Chief Financial Officer