Alliance buys 8 radiation therapy centers

Imaging services provider Alliance Imaging said that its affiliate Alliance Oncology has purchased eight radiation therapy centers from Sonix subsidiary Bethesda Resources for approximately $36 million in cash and assumed debt.

The centers are located in Alabama, Arkansas, Mississippi, and Missouri, according to the Anaheim-based firm. Alliance expects annualized revenue will total approximately $14 million.

In other Alliance acquisition news, the company signed a definitive agreement last week to purchase all of the outstanding shares of New England Health Enterprises Business Trust (NEHE) and the outstanding membership interests of New England Imaging Management for approximately $48 million in cash and assumed liabilities. NEHE operates seven fixed MRI and CT sites and one mobile MRI system in Maine and Massachusetts. Annualized revenue from the deal is expected to total approximately $20 million, Alliance said.

In financial developments, Alliance reported third-quarter revenue of $110.2 million, down 2.9% from the $113.5 million recorded in the third quarter of 2006. For the period (end-September 30), the firm had adjusted earnings before interest, taxes, deprecation, and amortization (EBITDA) of $40.4 million, down 4.4% compared with the $42.2 million turned in a year ago.

Revenue and adjusted EBITDA were negatively impacted by the Medicare reimbursement reductions related to the Deficit Reduction Act (DRA) of 2005 and Medicare Part B HOPPS reimbursement rate reductions for PET and PET/CT, Alliance said.

By AuntMinnie.com staff writers
November 6, 2007

Related Reading

Alliance feels DRA's bite in Q2 results, August 3, 2007

Alliance reports drop in Q1 revenues, May 1, 2007

Alliance posts revenue growth in 2006, February 22, 2007

Alliance Imaging eyes effect of DRA cuts, December 19, 2006

Alliance sets second offering price, November 21, 2006

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