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HEALTH IMAGES COMMENTS ON FLORIDA RATE CAP RULING

 HEALTH IMAGES COMMENTS ON FLORIDA RATE CAP RULING
 ATLANTA, July 17 /PRNewswire/ -- Robert D. Carl III, president and


chairman of Health Images, Inc. (NASDAQ: HIMG), commented today on a permanent injunction issued on Monday by a federal judge, which effectively eliminated a rate cap on medical clinics in the state of Florida.
 Carl stated: "I'm very pleased by the decision that the rate cap violated the Equal Protection clause of the U.S. Constitution. While we strongly support the Florida Legislature's joint ventures law that prohibits physician self-referral, we believe that the accompanying fee cap would have driven many ethical, independent clinic operators out of business. We feel that this ruling will allow the joint ventures law to create a 'level playing field' among medical services providers in Florida."
 In ruling against the state of Florida, U.S. Chief District Judge William Stafford found that the Florida Legislature lacked a legitimate reason for excluding hospitals and group physician practices from the rate cap, while applying the cap to independent medical clinics.
 The rate cap would have forced medical clinics to charge 115 percent of Medicare payments for services provided. The cap was part of a new joint ventures law that prohibits physicians with financial stakes in diagnostic imaging centers, radiation therapy centers or clinical labs from referring patients to those facilities.
 Health Images, Inc. operated 36 diagnostic imaging centers in the United States and the United Kingdom, and one radiation oncology center. The company also manufactures MRI scanners, provides equipment maintenance and medical construction services to third party clients, and leases mobile MRI equipment.
 -0- 7/17/92
 /CONTACT: Robert D. Carl III, president and chairman, or Laura J. Werner, director, Shareholder Relations of Health Images, 404-587-5084/
 (HIMG) CO: Health Images, Inc. ST: Florida IN: MTC SU:


BN-EA -- AT003 -- 0139 07/17/92 10:21 EDT
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Publication:PR Newswire
Date:Jul 17, 1992
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