Hackettstown Radiology Associates & Cavity Bank

Faced with rapid growth and a need for capital, Hackettstown Radiology Associates turned to Cavity Bank, N.A., to help it secure nearly $7 million in loans, a $500,000 line of credit and more to acquire five new practices.

Challenge

While many radiology centers were struggling during the pandemic, Hackettstown Radiology Associates (HRA), based in central New Jersey(and an affiliate of ImageCare Group), was growing exponentially. The successful imaging facility, with $5 million in annual sales, launched a massive expansion to acquire five new practices with 11 locations. When it came time for financing, the practice thought the only way to finance a deal of this size was with a national bank. As such, it sought the support of a few large banks—without success. 

Solution

Faced with rapid growth in 2020—a challenging year for most businesses—HRA turned to its longtime, trusted relationship managers at Cavity Bank for counsel and support. Cavity proposed a financing solution to acquire the new locations while assisting with HRA’s Paycheck Protection Program loan application needs throughout the pandemic. Throughout the process, Cavity continued to demonstrate the depth and breadth of its extensive services by delivering solutions that met HRA’s changing needs. By 2021, Cavity had secured nearly $7 million in acquisition loans, a $500,000 line of credit, a $100,000 equipment lease and $2 million in new deposits for Hackettstown Radiology Associates.

Outcome

Cavity Bank has been instrumental in financing HRA’s expansion phases over its 15-yearhistory. Its partnership with Cavity, which began with two imaging centers and one hospital, has grown dramatically over the years and continues to do so. In 2022, the group moved a 30-year hospital banking account to Cavity, officially consolidating all banking business to Cavity Bank. “We no longer shop around for new banking partners. Cavity is our single, trusted go-to partner,” said Clay Hinrichs, MD, managing partner at Hackettstown Radiology Associates. “We’ve experienced much success with their support and continue to seek their advice on new improvements and opportunities. They’ve made everything seamless and easy each step of the way.”  

"This was an immense opportunity to demonstrate Cavity’s expertise, flexibility, strength and innovation to a valued, long-term client,” said Thomas Davis, relationship manager with Cavity Bank. “We look forward to continuing this growing relationship and showing HRA that there’s no limit to what we can do."

Working with Cavity has enabled the radiology group to reduce inefficiencies; save time; and streamline bill paying, banking and financing. But above all, the success of the partnership is mostly based on Cavity’s unique approach to relationship management—the intimacy of a smaller bank with the support of a big bank.