RadNet is acquiring seven imaging centers from Houston Medical Imaging. (Photo courtesy of Houston Medical Imaging)
RadNet enters Texas with acquisition of seven imaging centers
March 04, 2024
by John R. Fischer, Senior Reporter
Outpatient diagnostic imaging provider RadNet has entered its eighth market with the acquisition of seven imaging centers under Houston Medical Imaging.
The deal will be the company’s first foray into a new state since 2020. The facilities, which offer multimodality services, including MR, CT, PET/CT, X-ray, ultrasound, and mammography, will continue to operate under the Houston Medical Imaging brand. The more than 20 affiliated radiologists and approximately 140 additional team members at these sites will join RadNet’s workforce of approximately 9,000 employees spread across its 366 owned and/or operated outpatient imaging centers.
“We are confident of the opportunity for further acquisitions, de novo build-outs, health system partnerships and other means of expansion, which include bringing our AI and leading edge clinical and operating digital health solutions to the patient and referring communities of greater Houston,” said Dr. Howard Berger, RadNet’s president and chief executive officer, in a statement.
Houston Medical Imaging was founded in 1998. According to its site, imaging exams are significantly more affordable at its locations compared to hospitals, such as an MR exam, which it says costs $500 under it rather than $2,000. Its sites are in Campbell, Richmond, Shepherd Heights, its Women’s Breast Center, Pearland, Edinburg, and the Energy Corridor business district.
In 2023, the seven imaging centers being sold performed more than 135,000 procedures together, earning over $28 million in revenue. The names of the seven being sold were not disclosed.
“As is the case with other markets, in Houston we will be committed to expanding patient access and services. The Houston market exhibits many of the characteristics that have permitted us to be successful in other RadNet core geographies,” said Berger.
Other locations in RadNet’s network include California, Maryland, Delaware, New Jersey, New York, Florida, and Arizona. Recently, the company expanded its network in California with the establishment of a joint venture with Cedars-Sinai called Los Angeles Imaging Group. The business will initially have three locations. RadNet and Cedars-Sinai will also add seven more locations to their existing Santa Monica Imaging Group.
The deal is expected to close in the second quarter of 2024.
Financial details were not disclosed.
The deal will be the company’s first foray into a new state since 2020. The facilities, which offer multimodality services, including MR, CT, PET/CT, X-ray, ultrasound, and mammography, will continue to operate under the Houston Medical Imaging brand. The more than 20 affiliated radiologists and approximately 140 additional team members at these sites will join RadNet’s workforce of approximately 9,000 employees spread across its 366 owned and/or operated outpatient imaging centers.
“We are confident of the opportunity for further acquisitions, de novo build-outs, health system partnerships and other means of expansion, which include bringing our AI and leading edge clinical and operating digital health solutions to the patient and referring communities of greater Houston,” said Dr. Howard Berger, RadNet’s president and chief executive officer, in a statement.
Houston Medical Imaging was founded in 1998. According to its site, imaging exams are significantly more affordable at its locations compared to hospitals, such as an MR exam, which it says costs $500 under it rather than $2,000. Its sites are in Campbell, Richmond, Shepherd Heights, its Women’s Breast Center, Pearland, Edinburg, and the Energy Corridor business district.
In 2023, the seven imaging centers being sold performed more than 135,000 procedures together, earning over $28 million in revenue. The names of the seven being sold were not disclosed.
“As is the case with other markets, in Houston we will be committed to expanding patient access and services. The Houston market exhibits many of the characteristics that have permitted us to be successful in other RadNet core geographies,” said Berger.
Other locations in RadNet’s network include California, Maryland, Delaware, New Jersey, New York, Florida, and Arizona. Recently, the company expanded its network in California with the establishment of a joint venture with Cedars-Sinai called Los Angeles Imaging Group. The business will initially have three locations. RadNet and Cedars-Sinai will also add seven more locations to their existing Santa Monica Imaging Group.
The deal is expected to close in the second quarter of 2024.
Financial details were not disclosed.