RadNet has executed a definitive agreement to acquire Imaging On Call for $5.5 million.
The Los Angeles-based RadNet inked the deal on Dec. 22, 2010. RadNet, which operates a network of 198 fully-owned and operated outpatient imaging centers, will pay $5.5 million for the Poughkeepsie, N.Y.-based teleradiology provider plus contingent compensation of up to an additional $2.5 million if Imaging On Call achieves certain 2011 performance milestones.
Imaging On Call's offerings include preliminary, final and subspecialty coverage over a range of imaging modalities including CT, MRI, ultrasound, nuclear medicine and x-ray. The company contracts with hospital-based and non-hospital-based radiology groups, hospitals, imaging centers and research foundations, to whom it provides remote interpretation of diagnostic imaging exams. Imaging On Call is Joint Commission-accredited for final and preliminary reads, and its currently contracted radiologists hold active licenses in 28 states and Washington, D.C., offered RadNet.
RadNet cited the acquisition and entrance into the teleradiology business as a natural extension of its activities and core competencies. Furthermore, “Imaging On Call will be a key component of augmenting [the company’s] strategies related to partnering with hospitals and accountable care organizations in joint ventures, regardless of their geography,” offered Howard G. Berger, MD, president and CEO of RadNet. The teleradiology purchase follows RadNet’s acquisition of PACS developer eRad in October 2010.
The acquisition is subject to a vote of Imaging On Call's membership interest holders approving the transaction.