RadNet Acquires Leading Neuroradiology Imaging Center in Delaware
The center, which performs MRI, CT, Bone Density, X-ray, Fluoroscopy and other specialized procedures, is located in a highly specialized medical complex called the Neuroscience and Surgery Institute of Delaware (“NSID”). NSID is a multi-discipline facility, home to what its resident physicians believe is the largest number of neurologists and neurosurgeons under one roof in Delaware. NSID’s physician groups and related facilities provide comprehensive services ranging from diagnostic testing and consultation to advanced medical and surgical treatment for virtually all neurological conditions.
Since 2004, the medical groups within NSID and others in the community have depended upon the high-quality, specialized services that are offered at the newly acquired NeuroSciences Imaging Center. Aside from routine studies, the center provides specialized procedures such as stereotactic tumor mapping, CT angiography with 3D reconstruction, whole brain proton MR spectroscopy and several advanced pre-neurosurgical exams. RadNet will upgrade the existing CT unit at the center to a PET/CT scanner, which will be available to service the expanding need for leading-edge functional PET neuro-imaging used in diagnostic evaluation of degenerative brain diseases, such as Alzheimer’s, as well as routine oncologic PET/CT applications.
The acquisition complements RadNet’s recent purchase of the Papastavros Associates Imaging centers completed in March, 2008. In conjunction with the NeuroSciences Imaging Center transaction, Dr. Alexander Mark has joined Papastavros as Medical Director for the NeuroSciences center, and will provide professional radiology services to the imaging facility. Dr. Mark trained at the University of California in San Francisco, where he completed his neuroradiology fellowship. Dr. Mark has been the Director of Neuroradiology at the Washington Hospital Center in Washington, D.C. for the last 20 years and an Associate Professor of Radiology and Neurosurgery at the George Washington University Medical Center.
The acquired facility will add approximately $4 million of revenue to RadNet on an annualized basis. The purchase price consisted of $4.5 million in cash.
“This acquisition is illustrative of our strategy of consolidating targeted local markets and building sub-specialist capabilities to better service our referring physician communities,” said Dr. Howard Berger, President and Chief Executive Officer of RadNet. “The acquired facility is located in an extraordinary multi-disciplined medical complex, focused on neurology, neurosurgery and related services. We believe that this facility is home to more neurologists and neurosurgeons than any other facility in the State of Delaware. Effectively servicing this strong referral base and other local physicians will be a priority focus of our Delaware operations team.”
“The transaction also illustrates our dedication to providing sub-specialty radiology capabilities within our markets. The addition of Dr. Mark to the Papastavros Associates Medical Group, our radiology partner in Delaware, enhances RadNet’s level of capabilities in this market and is indicative of our continuing drive to provide high-quality, premier radiology across our company,” said Dr. Berger.
About RadNet, Inc.
RadNet, Inc. is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of 162 fully-owned and operated outpatient imaging centers. RadNet’s core markets include California, Maryland, Delaware and New York. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 4,000 employees. For more information, visit http://www.radnet.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning RadNet’s ability to grow its contract management business, as well as RadNet's financial guidance, its statements regarding cost savings, its statements regarding increased business from new operations, are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause RadNet's actual results to differ materially from the statements contained herein. Further information on potential risk factors that could affect RadNet's business and its financial results are detailed in its most recent Annual Report on Form 10-K and Forms 10Q, as filed with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. RadNet undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
Contact:
RadNet, Inc. Mark Stolper, 310-445-2800 Executive Vice President and Chief Financial Officer or Integrated Corporate Relations, Inc. John Mills, 310-954-1105 jmills@icrinc.com
Source: RadNet, Inc.