RadNet Inc., which owns 191 outpatient diagnostic imaging centers in seven states, is buying its own picture archiving and communication systems vendor rather than continue to pay fees to other PACS companies. The acquisition also will bring the business a new revenue stream.
Los Angeles-based RadNet will pay $10.75 million for Image Medical Corp., the parent company of PACS firm eRAD Inc. of Greenville, S.C. The company has more than 250 hospitals, teleradiology companies, imaging centers and specialist group practices using its PACS. RadNet expects to close the acquisition this year and for eRAD to initially contribute $5 million in annual revenue.
RadNet will replace the existing PACS applications in its imaging centers with eRAD systems. It also has assembled a software development team to create workflow applications that augment eRAD's product line. RadNet CEO Howard Berger, M.D., expects the initiatives will save the company more than $20 million over 10 years by eliminating licensing, annual support and maintenance fees for other third-party imaging systems.
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