Publicly traded radiology provider Akumin says it’s starting to wind down COVID-only imaging centers
Publicly traded radiology provider Akumin said Thursday that it’s beginning to wind down COVID-dedicated imaging centers in some of its markets as regular care volumes start to stabilize.
The Toronto, Canada-based company—with primary offices in Florida—first rolled out its 10 special freestanding centers for coronavirus patients back in March in three states. However, officials told investors this week that they’re looking to transition away from such sites, particularly in the Sunshine State.
“Those centers, during the intense period [of the pandemic] really achieved the objective we wanted to achieve. They brought some focus in the community, where they realized we were there to help, and the same thing with the government, as well,” President and CEO Riadh Zine said on the company’s quarterly earnings call June 4. “I would say, especially in a state like Florida where doctors are now back in business, we are moving away slowly from the designated centers. But in other states like Texas, they’re actually still in place,” he added later.
Meanwhile, Akumin also temporarily shuttered 17 of its 135 freestanding imaging centers during the height of the crisis as a means to cut costs. Officials noted this week that they have reopened four or so but are taking a cautious approach to relaunching. The company’s business model is built on density, with locations clustered in markets, allowing customers to look elsewhere if one is unavailable so it can still “capture the volume.”
“We’ve been very disciplined in reopening any of those clinics,” Zine said. “Our intention is not to reopen them as soon as possible. Our intention is to make sure that, unless there is significant demand, we really don’t need to reopen those as fast as we can. Because what we are focused on is margin, not revenue.”
All told, Akumin logged adjusted earnings—before interest, taxes, depreciation and amortization—of nearly $15 million in the first quarter. That’s an EBITDA margin of roughly 21%, compared to 23% in the same period last year or $12.3 million. They’ve had a 43% year-over-year imaging volume growth, attributed to acquisitions, officials said.
At the height of the pandemic, average daily volume at its centers had declined by about 55% around mid-April. But that number had rebounded to a 25% decline by late May. In addition to closing some centers, Akumin also furloughed or laid off about 29% of its staff. You can read more about its earnings picture here.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.