In a continuing trend of local health-care consolidation, Kern Radiology Medical Group Inc. has been purchased by a Los Angeles outpatient medical imaging company touted as the largest company of its kind in the country.
RadNet Inc.’s acquisition of Kern Radiology would combine the two companies’ physician groups in a way that would make more efficient use of personnel, said Dr. Girish Patel, a person with knowledge of the transaction and who sold Truxtun Radiology Medical Group to RadNet in 2010.
Patel remains a director of its local group.
“Patients will get better service because there will be more physicians around,” he said. “Even with similar physicians, we can, you know, divide the workload better.”
Terms of the transaction have not been disclosed. Executives with RadNet and Kern Radiology did not return requests for comment on the deal, which Patel said closed Wednesday.
RadNet, founded in 1984, is a publicly traded company with 341 locations, 500 radiologists and more than 7,000 employees in California, Delaware, Florida, Maryland, New Jersey and New York. It provides a variety of health-care diagnostics ranging from MRI and CT scans to ultrasound and digital X-rays.
Kern Radiology was founded by a local radiologist in 1968. Owned by a group of nine local radiologists, it has four offices offering services that include mammography, fluoroscopy and diagnostic radiology.
It was unclear Thursday what the acquisition will mean for Kern Radiology’s employees and locations. In some cases, RadNet's local subsidiary — Truxtun Radiology — is just doors away from a Kern Radiology office.
Kern Radiology has contracts with Dignity Health, of which Bakersfield Memorial Hospital and Mercy are a part. Patel said he was unsure whether RadNet would take over service of those contracts.
The transaction is the latest in a series of consolidation moves in the local health-care industry.
Earlier this month, 156-bed Delano Regional Medical Center agreed to become part of Adventist Health Central California, whose parent organization is based in Roseville.
in November, Dignity Health, the San Francisco-based owner of local hospitals Bakersfield Memorial, Mercy downtown and Mercy Southwest, received state approval to join with Catholic Health Initiatives, a Colorado-based nonprofit with no operations in California.