-
Acquisition represents InSight’s first significant reinvestment of proceeds of earlier dispositions of non-core centers
-
Acquisition enhances Company’s New England strategic network
-
Centers are serviced by New England Baptist Radiology, a high quality, sub-specialty radiology group
LAKE FOREST, Calif. ... March 19, 2009 ... InSight Health Services Holdings Corp. (“InSight”) (OTCBB: ISGT) today announced that, through a subsidiary, it had signed a definitive agreement to acquire two imaging centers in the Boston-metropolitan area from subsidiaries of Medical Resources, Inc. for approximately $8.1 million in cash. The two centers generate approximately $5.6 million in annual revenues. One center is exclusively MRI while the other is a multi-modality facility. The acquisition is expected to close in April 2009.
Kip Hallman, InSight’s President and CEO, commented on the transaction, “This acquisition is consistent with our strategy of making targeted investments in strategic markets, and to be strongly aligned with quality, subspecialty radiology groups. These centers complement our New England regional presence, which stretches from Maine to Connecticut, and we are pleased that we were able to acquire the facilities at an attractive price. I am very excited to welcome the New England Baptist Radiology physicians and the talented center managers and staff to the InSight team.”
About New England Baptist Radiology
New England Baptist Radiology is a leader in the field of Orthopedic and Spine Imaging and Neuroradiology. The group is comprised of fellowship trained musculoskeletal and neuroradiologists with expertise in all facets of magnetic resonance imaging (MRI). The radiologists are based at the New England Baptist Hospital, a recognized center of excellence in bone and joint disease.
About InSight
InSight, headquartered in Lake Forest, California, is a provider of diagnostic imaging services through a network of fixed-site centers and mobile facilities. InSight serves a diverse portfolio of customers, including healthcare providers, such as hospitals and physicians, and payors, such as managed care organizations, Medicare, Medicaid and insurance companies, in over 30 states, including the following targeted regional markets: California, Arizona, New England, the Carolinas, Florida and the Mid-Atlantic states. As of December 31, 2008, InSight’s network consists of 63 fixed-site centers and 114 mobile facilities.
For more information, please visit www.insighthealth.com.
Safe Harbor
The foregoing contains forward-looking statements regarding InSight. They reflect InSight’s current views with respect to current events and financial performance, are subject to many risks, uncertainties and factors relating to InSight’s operations and business environment which may cause the actual results of InSight to be materially different from any future results, express or implied by such forward-looking statements. InSight intends that such forward-looking statements be subject to the Safe Harbor created by Section 27(a) of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. The words and phrases “expect,” “estimate,” and “anticipate” and similar expressions identify forward-looking statements. Certain factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: (i) InSight’s ability to successfully implement its core market strategy; (ii) overcapacity and competition in InSight’s markets; (iii) reductions, limitations and delays in reimbursement by third-party payors; (iv) contract renewals and financial stability of customers; (v) conditions within the healthcare environment; (vi) the potential for rapid and significant changes in technology and their effect on InSight’s operations; (vii) operating, legal, governmental (including changes in the federal administration) and regulatory risks; (viii) conditions within the capital markets, including liquidity and interest rates, and (ix) economic (including financial and employment market conditions), political and competitive forces affecting InSight’s business, and the country’s economic condition as whole.