Chesapeake Medical Imaging ends its 25-year run as a private practice
Chesapeake Medical Imaging has ceased its existence as a private radiology group after 25 years.
RadNet Inc. acquired the assets of the Annapolis, Maryland-based physician practice in November for $29 million, the company confirmed Monday. At one point, CMI had operated 14 locations, with 12 now becoming part of RadNet.
Founded in 2001 by radiologist Mark D. Baganz, MD, Chesapeake Medical Imaging was previously a member of the Strategic Radiology coalition of independent imaging groups. SR had removed the practice from its website as of Monday.
Strategic Radiology said the group officially ceased existing as a private practice on March 1. It was previously an outpatient-only radiology group that read studies for its radiologist-owned imaging centers.
“Due to market forces and payer challenges, they made the difficult decision to sell their imaging center assets and dissolve the group,” Scott Bundy, MD, Strategic Radiology’s CEO, told Radiology Business Monday. “We wish them all the best and have made them aware that we would be happy to put any of the radiologists in touch with any of our SR member groups, if they desire.”
Dr. Baganz confirmed Monday that CMI had merged with RadNet effective March 1. He said the company is “thrilled to become part of the RadNet family,” with the two sharing a similar geographic distribution, other than CMI’s Eastern Shore assets. The two companies have become well-acquainted while operating in the same markets.
“The changes in the business side of medicine in recent years have made it more difficult to deliver high quality care as a smaller organization,” Baganz said by email Monday. “Joining RadNet has been a fantastic step forward for continuing our mission, ensuring excellent patient care, job security for our amazing staff, state-of-the-art equipment upgrades, and leveraging AI in Radiology through RadNet’s DeepHealth offerings. Merging with a physician founded and led organization assures us that excellent patient care will remain the primary focus.”
RadNet estimated it now has 68 centers in the state of Maryland. CMI had employed approximately 16 physicians, according to an archived version of SR’s website accessed Monday. RadNet said the radiologists have all been merged into one of its other Maryland-based professional entities. It emphasized that the referral community will not experience “any change in the interpreting radiologists they have come to know and trust.”
Centers span communities including Annapolis, Baltimore, Bowie, Catonsville and Chestertown, among others. The acquisition gives RadNet its first presence across the Bay Bridge into the Eastern Shore of Maryland, said Steven Forthuber, president and CEO of Eastern Operations. The CMI centers and operations also have been fully integrated into the RadNet/DeepHealth IT stack, including AI tools, as of March 2, he added.
“We are excited to add these new locations to better enable us to provide convenient access to high-quality, affordable outpatient imaging services and, most importantly, to our AI-powered screening programs for breast, lung, and prostate health,” Forthuber told Radiology Business by email. “We have added the very talented CMI team of radiologists, technologists, and non-clinical personnel to our existing Maryland operations—Advanced Radiology, Community Radiology Associates, and American Radiology Services.”
Chesapeake Medical Imaging posted official word of its change in ownership on Monday. It emphasized that staffing, availability of prior reports, and commitment to quality all will remain the same under new ownership. However, joining RadNet will grant it greater access to subspecialized radiologists, a larger network of centers, and improved technology for accessing reports and images.
“This allows us to maintain everything you value about CMI, while expanding access and capabilities through a larger, integrated network of medical imaging facilities,” the notice reads.
Thomas Marshall, MBA, previously CMI’s chief marketing and patient access officer, is joining RadNet with the transition. He will serve as associate VP of revenue cycle operations/customer services, according to a LinkedIn post shared Monday.
This is the latest in a line of acquisitions for RadNet. The company also marked its first move into Indiana last month, buying 6 imaging center assets from Northwest Radiology for $9 million. It also added another 13 Florida centers from LucidHealth for $65 million in January, which were previously operated by Radiology Regional.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.