EXHIBIT 99.3

                                 [LETTERHEAD]


      INSIGHT HEALTH SERVICES INCREASES CREDIT FINANCING TO $150 MILLION

         -TERMS OF ORIGINAL CREDIT FINANCING INCREASED BY $25 MILLION-


     Newport Beach, CA, December 22, 1997 -- InSight Health Services Corp. 
(NASDAQ: IHSC) today announced it had closed an additional $25 million in 
senior secured credit financing from a group of banks led by NationsBank, 
N.A. The original credit financing was announced in conjunction with a $25 
million equity investment in InSight by The Carlyle Group on October 14, 
1997. Since that time, the financing has been syndicated and increased from 
its original $125 million to its current $150 million.

     The $150 million financing includes a term loan to refinance existing 
debt, a working capital facility and an acquisition facility. The working 
capital and acquisition facilities provide $100 million to fuel growth and 
acquisitions. The new credit facilities result in a two hundred basis point 
reduction in InSight's current interest rate costs. This closing completes 
the Company's equity and debt transactions totaling $175 million.

     E. Larry Atkins, commenting on the financing, stated, "This financing 
significantly strengthens our resources and lowers our cost of capital. The 
capital infusion will be used largely to fuel the company's future 
acquisitions, expand our open MRI program, and continue with the development 
of our radiology co-sourcing product. The $25 million increase in funding 
over the amount originally announced in October is a vote of confidence in 
InSight and its strategy. We have a robust acquisition pipeline and this 
funding will make it possible to accelerate strategic acquisitions that are 
immediately accretive to the Company."

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SAFE HARBOR STATEMENT

      Statements made in this news release that state the Company's or 
management's intentions, hopes, beliefs, expectations or predictions for the 
future are forward-looking statements that involve risks and uncertainties. 
It is important to note that the Company's actual results and experience 
could differ materially from the anticipated results or other expectations 
expressed in such forward-looking statements. The risks and uncertainties 
that may affect the operations, performance, developments and results of the 
Company's business include, but are not limited to changing regulatory 
environment, limitations and delays in reimbursement by third party payors, 
contract renewals, financial stability of customers, aggressive competition, 
industry-wide market factors and other risk factors detailed in the 
Company's SEC filings.

ABOUT INSIGHT HEALTH SERVICES

     InSight, headquartered in Newport Beach, California, provides diagnostic 
imaging and information, treatment and related management services. It serves 
managed care, hospitals and other contractual customers in 28 US states, 
including five major US markets: California, the Southwest, including a major 
presence in Texas, the Midwest, the Northeast and the Southeast.

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