This paper proposes a representation framework for encoding spatial language in radiology based on frame semantics. The framework is adopted from the existing SpatialNet representation in the general domain with the aim to generate more accurate representations of spatial language used by radiologists. We describe Rad-SpatialNet in detail along with illustrating the importance of incorporating domain knowledge in understanding the varied linguistic expressions involved in different radiological spatial relations. This work also constructs a corpus of 400 radiology reports of three examination types (chest X-rays, brain MRIs, and babygrams) annotated with fine-grained contextual information according to this schema. Spatial trigger expressions and elements corresponding to a spatial frame are annotated. We apply BERT-based models (BERT-Base and BERT- Large) to first extract the trigger terms (lexical units for a spatial frame) and then to identify the related frame elements. The results of BERT- Large are decent, with F1 of 77.89 for spatial trigger extraction and an overall F1 of 81.61 and 66.25 across all frame elements using gold and predicted spatial triggers respectively. This frame-based resource can be used to develop and evaluate more advanced natural language processing (NLP) methods for extracting fine-grained spatial information from radiology text in the future.