Diagnostic imaging center operator RadNet reported that it has entered into an agreement to manage 20 imaging centers formerly owned and operated by Nydic Open MRI of America. The operations of the Montvale, N.J.-based Nydic were recently foreclosed upon by its primary lender.
The Los Angeles-based RadNet said that it has reached an agreement with that lender to manage the former Nydic facilities through its wholly-owned subsidiary, RadNet Managed Imaging Services (RMIS). The Nydic chain of MRI centers operates in 11 states and produces annual net revenue of approximately $30 million.
The services which RMIS will provide include billing and collection, transcription, medical coding, equipment management, medical supplies purchasing, acquisition and sale advisory work and overall strategic management, the company said.
As remuneration for RMIS' services to the 20 imaging centers, RMIS will receive a monthly management fee and a percentage of the centers' net revenue. RMIS is eligible for additional fees with respect to certain performance initiatives, according to RadNet.
RMIS, according to RadNet chairman and CEO, Dr. Howard Berger, allows RadNet to benefit from selling business services to operators in situations where acquiring the operations does not fit with the company’s strategy.
Berger said that he foresees an increasing role for the RMIS business unit within RadNet’s overall structure.
“We envision many of our clients to be lenders who have troubled portfolio companies, equipment manufacturers and their financing arms who have leased equipment to underperforming centers and other operators who simply recognize that RMIS can help them improve their financial situations,” he said. “At the same time, our business services subsidiary should provide incremental high-margin revenue to RadNet and represents what we believe to be a significant growth opportunity."