RadNet announces Q1 financial results, joint venture with Dignity Health in California

RadNet, one of the country's largest operators of outpatient imaging centers, has announced its financial results for the first quarter of 2016, reporting revenue of more than $216 million and adjusted EBITDA of more than $27 million.

“I’m pleased with the progress we made in the first quarter,” Howard Berger, MD, RadNet president and CEO, said in a prepared statement. “The first quarter is perennially our most difficult one because of the normal seasonality we face in our business related to lower healthcare utilization related to deductibles and weather conditions. We significantly improved over the same period last year as evidenced by our increased aggregate Revenue, EBITDA and same-center procedural volumes. We also completed several initiatives during the quarter that will set the stage for improved results as the year progresses.”

RadNet’s financial results also indicated that imaging volume was up significantly in 2016. Compared to 2015’s first quarter, MRI volume increased by more than 17 percent, CT volume increased more than 13 percent, and PET/CT volume increased more than 14 percent. Overall volume increased more than 18 percent.

RadNet also announced a new joint venture with Dignity Health’s Glendale Memorial Hospital in Glendale, Calif. The deal consists of two imaging centers. RadNet owns 55 percent of the joint venture, and Dignity Health owns the other 45 percent.

“We are [excited] to bring to the west coast the joint venture model with which we’ve been successful in several of our largest east coast markets,” Berger said in the same statement. “Dignity Health is one of the largest and most prominent systems in the country and we look forward to successfully building an imaging platform within the Glendale market. We are actively exploring other business opportunities with Dignity in this market and hope to expand our relationship to other geographies in the future.”