Volume growth and cost management contributed to record quarterly revenue for imaging services provider RadNet.
For its third quarter (end-September 30), the Los Angeles-based firm had revenues of $110.2 million, up 6.3% compared with the $103.7 million posted in the third quarter of 2006. RadNet had a net loss of $2 million, compared with a net loss of $2.5 million a year ago.
Improved volume and margin performance from existing imaging centers, as well as cost savings, helped to offset the negative reimbursement effects of the Deficit Reduction Act (DRA) of 2005, and the effect of having one fewer business day in the quarter, RadNet said.
In other news, RadNet said it has exited the Colorado market through the sale of assets it had acquired in its acquisition of Radiologix in 2006. In addition, the company has inked an agreement to purchase Papastavros' Associates Medical Imaging and related entities for $18 million in cash plus the assumption of approximately $3.6 million of debt. The group operates 12 centers in Delaware.
Related Reading
RadNet converts to digital mammo in Maryland, October 24, 2007
RadNet acquires Liberty Pacific, October 9, 2007
RadNet takes over Nydic centers, August 31, 2007
RadNet posts profit in Q2, August 14, 2007
Mortgage debt blowup impacts RadNet deal, August 10, 2007
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