RadNet Acquires Certain Southern California Imaging Assets From HealthCare Partners, LLC and Signs a Long-Term Capitation Contract With HealthCare Partners Medical Group

By GlobeNewswire,  July 18, 2014, 06:00:00 AM EDT


LOS ANGELES, July 18, 2014 (GLOBE NEWSWIRE) -- RadNet, Inc.(Nasdaq:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 250 owned and operated outpatient imaging centers, today reported that effective July 1, 2014, it has acquired certain imaging assets located at eight HealthCare Partners Medical Group facilities. In addition, RadNet has entered into a long-term capitation contract to provide diagnostic imaging services to approximately 65,000 HealthCare Partners Medical Group patients including commercial and managed Medicare and Medicaid enrollees.

As part of the agreement, RadNet acquired routine imaging assets, including x-ray, mammography and ultrasound equipment, located in eight Southern California HealthCare Partners offices in Santa Ana, Fountain Valley, Huntington Beach, Compton, Downey, Long Beach and Anaheim. RadNet has assumed operations at these locations, which continue to service the routine imaging needs of HealthCare Partners patients. In addition, RadNet's existing facilities, located near these eight offices and convenient to where these HealthCare Partners patients live and work, will offer advanced imaging exams and other services not provided in the eight facilities.

In conjunction with the purchase of these imaging assets, RadNet and HealthCare Partners Medical Group have entered into a five-year capitation arrangement under which RadNet will provide, on an exclusive basis, diagnostic imaging services to approximately 65,000 HealthCare Partners patients who HealthCare Partners manages as part of its commercial and managed Medicare and Medicaid programs. RadNet will perform utilization review and aid HealthCare Partners with the establishment of appropriateness and educational criteria related to their imaging needs.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, noted, "We are delighted to expand our longstanding relationship with HealthCare Partners. In the past, we have worked with several HealthCare Partners Medical Group sites under capitation arrangements, whereby we have exclusively provided imaging services to significant HealthCare Partners-managed patient populations in Southern California. We appreciate the confidence HealthCare Partners has shown in RadNet by effectively outsourcing its imaging needs to us."

"Capitation remains a core part of RadNet's business in California. In a post-reform era, healthcare will continue to migrate towards capitation and other business models whereby efficiently-managed, high quality providers will assume the risk associated with healthcare utilization and provide patient care for fixed compensation. The traditional fee-for-service model of healthcare has led to the rising cost of health insurance, inefficient providers and over-utilization of care. I am convinced that the capitation model, which is more advanced in California than in most other states, will be an effective model for healthcare reform across the country. RadNet and HealthCare Partners are well positioned to benefit from this trend," added Dr. Berger.

About RadNet, Inc.

RadNet, Inc. is the largest provider of fixed-site outpatient diagnostic imaging services in the United States through 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 6,000 employees. For more information, visit http://www.radnet.com.

About HealthCare Partners

HealthCare Partners, LLC, a subsidiary of DaVita HealthCare Partners, manages HealthCare Partners Medical Group along with organizations in Nevada, Florida, Arizona, and New Mexico. HealthCare Partners Medical Group has been named a top-performer for ten years in a row by the Integrated Healthcare Association (IHA), and has been recognized by health plans and business groups for medical leadership, the high quality of medical care delivered, operational effectiveness, and high rates of patient satisfaction. With more than 1,800 employed and affiliated primary care physicians and more than 4,500 employed and contracted specialists, HealthCare Partners Medical Group cares for patients in Los Angeles, Long Beach, South Bay, the Pasadena/San Gabriel Valley area, the San Fernando and Santa Clarita Valleys, and Orange County. In addition to primary care doctors' offices, HealthCare Partners Medical Group provides medical services through urgent care centers, and offers a wide variety of support programs such as 24-hour telephone support, electronic medical records, health education classes, and special programs for chronic conditions. For more information, please visit www.healthcarepartners.com

CONTACT: RadNet, Inc.Mark Stolper, 310-445-2800
         Executive Vice President and Chief Financial Officer

Source: RadNet, Inc.

This article appears in: News Headlines

Referenced Stocks: RDNT


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