EXHIBIT 99.1



                                                                       CONTACTS
                                                 At Lippert/Heilshorn & Assoc.:
                                                    Lillian Armstrong/Adam Aron
                                                                   415-433-3777

                                                                    At InSight:
                                                                      Tom Croal
                                                      Executive Vice President/
                                                        Chief Financial Officer
                                                                   714-476-0733
                                          
              INSIGHT HEALTH SERVICES CORP. COMPLETES ACQUISITION OF 
                           SIGNAL MEDICAL SERVICES, INC.


     NEWPORT BEACH, CALIFORNIA, May 19, 1998 - InSight Health Services Corp.
("InSight") (NASDAQ: IHSC) today announced that the acquisition of Signal
Medical Services, Inc. ("Signal") by a wholly-owned subsidiary of InSight has
been consummated.  

     Signal currently serves 61 customers in 11 states primarily in the
Northeast and Southeast.  The transaction adds 3 new states, Connecticut,
Massachusetts and Vermont, to InSight's geographic coverage as well as imaging
services in Florida, where InSight has an existing gamma knife facility.  Signal
currently operates 19 mobile MRI units, 4 mobile lithotripters, 3 fixed site MRI
centers, 3 fixed site multi-modality imaging centers and 1 fixed site CT center.
For the year ended December 31, 1997, Signal's revenues were approximately $21
million.

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 with
respect to operation of Signal's business 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 


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INSIGHT HEALTH SERVICES
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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 25 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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