The Medical University of South Carolina and Alliance HealthCare Services Announce Strategic & Operational Radiation Therapy Affiliation

Cutting-edge cancer treatment to better serve Charleston and South Carolina region

CHARLESTON, SC & NEWPORT BEACH, CA– (BUSINESS WIRE)–March 11, 2014– The Medical University of South Carolina (MUSC), one of the nation’s top academic health science centers, and Alliance Oncology, a division of Alliance HealthCare Services, Inc. (NASDAQ: AIQ), announce a newly formed affiliation designed to strengthen and expand MUSC’s Hollings Cancer Center as the radiation therapy market leader in Charleston, South Carolina.

Through this long-term affiliation, Alliance Oncology will work with Hollings Cancer Center and its affiliated physicians to deliver market and operational support, as well as management services for the entire radiation therapy department. This encompasses Hollings’ inpatient, outpatient, and satellite locations where radiation therapy treatments are performed and comprises all current radiation therapy services, including an arrangement to evaluate and expand Hollings’ presence throughout the region.

As a provision of the new affiliation, improvements to MUSC’s Hollings Cancer Center include: multiple new radiation therapy and radiosurgery technologies and equipment, new physics and radiation treatment systems—providing cutting-edge radiation therapy and stereotactic radiosurgery treatment advancements for cancer patients in the South Carolina region.

Radiation therapy destroys cancer cells that divide quickly, thus helping to stop the spread of cancer at the tumor site and reducing the risk of cancer metastasizing throughout the body. Stereotactic radiosurgery (SRS) uses extremely accurate image-guided tumor targeting and patient positioning. Therefore, a high dose of radiation can be given in a shorter amount of time without excess damage to normal tissue.

“Alliance’s proven operational and management services, combined with their ability to deliver capital for innovative technology offers MUSC the tools needed to continue to lead the way in providing outstanding clinical care in radiation therapy, says Dr. Patrick Cawley, CEO of the Medical University of South Carolina. “Their commitment to clinical collaboration with our physician staff and advanced technology and operational excellence in combination with our clinical expertise, ensures Hollings Cancer Center will continue to set the standard as the only National Cancer Institute (NCI) designated center in South Carolina.”

MUSC’s Hollings Cancer Center is South Carolina’s only National Cancer Institute (NCI)-designated cancer center and one of fewer than 70 in the United States. The center’s locations serve Charleston and the entire South Carolina region.

“We are excited to announce Alliance’s affiliation with the Medical University of South Carolina, an admired and respected academic institution, and the Hollings Cancer Center,” says Tom Tomlinson, Chief Executive Officer and President of Alliance HealthCare Services. “We are proud to support MUSC’s vision of building hope, improving lives and serving society, and we are confident that this new relationship will provide better cancer treatment options for people who live and work in the Charleston area, as well as the entire state of South Carolina.”

This affiliation is anticipated to generate over $11 million of Alliance Oncology revenue.

About Medical University of South Carolina

The Medical University of South Carolina (MUSC) has grown from a small private medical school in 1824 into one of the nation’s top academic health science centers, with a 700-bed medical center (MUSC Health) and six colleges that train approximately 2600 health care professionals per year.

As an academic medical center or teaching hospital, MUSC Health is at the forefront of the latest advances in medicine, with world-class physicians, groundbreaking research and technology that is often among the first of its kind in the world. Patients also benefit from a multidisciplinary, team approach to care that involves the close collaboration of specialists from many different areas.

MUSC Health annually records more than one million patient encounters, and is highly regarded in many disease areas including neurosciences, cancer care, rheumatology, digestive disorders, heart and vascular care, transplant, women’s health, pediatric medicine, musculoskeletal disorders, psychiatry, eye care, otolaryngology, and respiratory medicine.

About Hollings Cancer Center

As one of the leading cancer treatment centers in the Southeast, Hollings Cancer Center combines the full range of cancer specialties – including medical oncology, radiation oncology, surgical oncology, chemotherapy, and reconstructive surgery – to deliver a higher level of care to the patients we serve. Our team of more than 60 super-specialists – each concentrating on a specific discipline of cancer treatment and care – works with individual patients to develop customized treatment programs that target a broad range of conditions. Often in just one day – and under one roof – patients receive individualized attention from several specialists and complete the diagnostic procedures needed for a confident assessment of type and stage. Hollings is the only NCI (National Cancer Institute) designated Cancer Center in the State of South Carolina.

About Alliance HealthCare Services

Alliance HealthCare Services is a leading national provider of advanced outpatient diagnostic imaging and radiation therapy services based upon annual revenue and number of systems deployed. Alliance focuses on MRI, PET/CT and CT through its Imaging division and radiation therapy through its Oncology division. With approximately 1,800 team members committed to providing exceptional patient care and exceeding customer expectations, Alliance provides quality clinical services for over 1,000 hospitals and other healthcare partners in 44 states. Alliance operates 487 diagnostic imaging and radiation therapy systems. The Company is the nation’s largest provider of advanced diagnostic mobile imaging services and one of the leading operators of fixed-site imaging centers, with 127 locations across the country. Alliance also operates 28 radiation therapy centers, many of which are operated in conjunction with local community or academic hospital partners, providing treatment and care for cancer patients. For more information, please visit https://www.alliancehealthcareservices-us.com.

Alliance HealthCare Services Forward-Looking Statements

This press release contains forward-looking statements relating to future events, including statements related to the expansion of radiation therapy services. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Alliance’s expectations. Such uncertainties and risks include, among other things, the effect of intense levels of competition in Alliance’s industry; changes in the methods of third party reimbursements for diagnostic imaging and radiation oncology services; fluctuations or unpredictability of Alliance’s revenues, including as a result of seasonality; changes in the healthcare regulatory environment or other governmental laws and regulations affecting Alliance’s operations; Alliance’s ability to keep pace with technological developments within its industry; the growth or lack thereof in the market for imaging, radiation oncology and other services; the disruptive effect of hurricanes and other natural disasters; adverse changes in general domestic and worldwide economic conditions and instability and disruption of credit markets; difficulties Alliance may face in connection with recent, pending or future acquisitions, including unexpected costs or liabilities resulting from the acquisitions, diversion of management’s attention from the operation of Alliance’s business, and risks associated with integration of the acquisitions; and other risks and uncertainties identified in the Risk Factors section of the Company’s Form 10-K for the year ended December 31, 2012, filed with the Securities and Exchange Commission (the “SEC”), as may be modified or supplemented by our subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Alliance does not undertake to update its forward-looking statements except as required under the federal securities laws.

SOURCE: Alliance HealthCare Services, Inc.