Many of the company's new initiatives were centered around diagnostic imaging services, which were managed by RadNet. The changes made by California forced Primedex to switch its business focus, resulting in more funding being allocated for other services. At the time of Primedex's acquisition of RadNet, the larger company was going through a period of rapid expansion however, this growth was cut short in 1993 when the State of California implemented statuary changes to the way workers' compensation was managed. In addition, much of Primedex's business was focused around dealing with workers' compensation claims. In 1992 the company was bought by Primedex Health Systems, a California-based management company that catered to small medical clinics. The nascent company was concerned with providing billing and administrative services to large medical care providers, with the initial RadNet imaging center being located near Cedars-Sinai Medical Center. RadNet was founded in 1981 as a small imaging center in Los Angeles. RadNet is the largest provider of outpatient imaging services in the United States. The company operates outpatient diagnostic imaging centers.
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