RadNet and Barnabas Health 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."