Outpatient Imaging Affiliates, LLC Announces Two New Partnerships with New Jersey's Meridian Health and Red Bank Radiology

Business Wire, Feb 2, 2006

NASHVILLE, Tenn. -- Outpatient Imaging Affiliates, LLC ("OIA") announced today that it has formed a partnership with Meridian Health and Red Bank Radiology, both located in New Jersey. Under the agreement, OIA has purchased an equity interest in Holmdel Imaging Center, formerly owned by Meridian Health and Red Bank Radiology, and will assume day-to-day assume managing and marketing of the Center, located in Holmdel, New Jersey. Holmdel Imaging opened in February 2004, provides MRI, CT and ultrasound services and was formerly being managed by Red Bank Radiology.

Additionally, Meridian Health, Red Bank Radiology and OIA, have agreed to develop a new outpatient imaging center which will be located in Manalapan, New Jersey. OIA will provide management and marketing and billing services for this location. The center is scheduled to open later this year and will initially provide MRI, CT and ultrasound services.

Red Bank Radiology, which provides radiology services at Holmdel Imaging and Meridian Health's Riverview Medical Center, will also provide clinical interpretive services to Manalapan Imaging. Robert E. Wold, M.D., president of Red Bank Radiology, explained why his group favored a partnership with OIA: "Without the responsibilities of center management, our practice can dedicate 100% of its focus to what we do best - provide quality and timely clinical interpretive services to patients and referring physicians at our hospitals and the Holmdel and Manalapan centers. Strategically and financially, this relationship strongly benefits our group's long-term plans for growth and diversification."

Meridian Health has great confidence that OIA will continue to provide the same level of quality and compassionate care patients have come to expect from Meridian's hospitals and affiliated locations. Salvatore Inciardi, Senior Vice President of Business Development of Meridian Health cites OIA's past accomplishments with other health systems as proof of OIA's commitment to a customer-driven culture with respect to patient care: "We evaluated a number of companies and OIA's track record of professionalism and success really stood out. We believe this partnership will further enhance Meridian's reputation as the premier integrated health system in the areas we currently serve and have targeted for future growth."

The "OIA partnership model" is becoming more appealing to radiology groups and health systems looking to focus staff attention on hospital-based core competencies while proactively pursuing a competitive and financially attractive outpatient imaging services strategy. "Most hospitals have suffered far too long from highly profitable radiology services being siphoned off to outpatient imaging competitors in their primary service areas," says Frank Kyle, CEO of Outpatient Imaging Affiliates. "OIA provides a partner-based model that combines OIA's extensive, proven outpatient imaging experience with the brand awareness and relationships its local partners enjoy with referring physicians and patients. We are very excited about our partners. Meridian Health enjoys a strong reputation throughout Ocean and Monmouth counties and Red Bank Radiology has a well established reputation for excellence with its referral base and their patients."

Headquartered in Nashville, TN, Outpatient Imaging Affiliates partners with healthcare providers, including academic teaching hospitals, hospital medical centers, and radiology practices to develop and manage outpatient diagnostic imaging and PET/CT centers. OIA operates and/or holds equity positions in eleven outpatient diagnostic imaging and PET centers with four additional centers under development to open in 2006. In addition to Meridian Health System, OIA has investments in, and manages, outpatient imaging centers that are joint ventured with many leading healthcare providers including, among others, The University of Virginia Health System, Thomas Jefferson University, The University of Texas, the University of Maryland and Deaconess Associations. OIA has operations in Illinois, Maryland, Missouri, New Jersey, North Carolina, Maryland, Ohio, Pennsylvania, Tennessee, Texas and Virginia.

Meridian Health is a not-for-profit leader in Monmouth and Ocean counties, providing quality health services, facilities, and programs. With three hospitals (Jersey Shore University Medical Center in Neptune, Ocean Medical Center in Brick, and Riverview Medical Center in Red Bank), 70 convenient locations, annual system revenues of $725 million, 7,500 dedicated employees, and affiliations with over 1,400 of the area's finest physicians, Meridian continues to be the largest employer in Monmouth and Ocean counties.