Equity Investments in Joint Ventures

12 Months Ended

Dec. 31, 2011

Equity Investments in Joint Ventures

(13) Equity Investments in Joint Ventures

The Company currently maintains equity interests in seven unconsolidated joint ventures, a 45% interest in a joint venture with a radio-surgery facility, a 45% interest in a urology surgical facility, a 28.5% interest in the development and management of a proton beam therapy center to be constructed in Manhattan, a 50% interest in an international freestanding radiation center in Mohali, India, and two joint ventures in South America.

In 2010, the Company maintained a 33% interest in Medical Developers, LLC, a joint venture which had a 57% interest in the underlying operating entities, and manages 26 radiation therapy treatment centers in South America, Central America and the Caribbean . The centers are located in Argentina, Mexico, Costa Rica, Dominican Republic, Guatemala, El Salvador and Bolivia. In March 2011, the Company purchased the remaining 67% interest in Medical Developers, LLC.

At December 31, 2010 and 2009, the Company's investment in Medical Developers, LLC was approximately $14.7 million and $13.1 million, respectively. Total member's equity as reported by Medical Developers, LLC was $26.2 million and $19.0 million at December 31, 2010 and 2009, respectively. The Company's equity in the earnings of Medical Developers, LLC for the years ended December 31, 2010 and 2009 was approximately $2.0 million and $1.5 million, respectively, which is recorded in other revenue in the accompanying consolidated statements of comprehensive loss. The Company's equity in the earnings of a controlling interest in MDLLC for the two months ended February 28, 2011 was approximately $0.3 million. Effective March 1, 2011, the Company consolidated the operations of Medical Developers, LLC.

The condensed results of operations of Medical Developers, LLC are as follows:

(in thousands):	Year Ended December 31, 2010

Total revenues	$	53,152
Net income		10,940
Net income attributable to noncontrolling interests		(4,864	)

Net income attributable to Medical Developers, LLC	$	6,076

The Company utilizes the equity method to account for its investments in the unconsolidated joint ventures. At December 31, 2011 and 2010, the Company's investments in the unconsolidated joint ventures were approximately $0.7 million and $20.1 million, respectively. The Company's equity in the earnings (losses) of the equity investments in joint ventures was approximately ($1.0 million), $1.0 million, and $0.9 million years ended December 31, 2011, 2010 and 2009, respectively, which is recorded in other revenue in the accompanying consolidated statements of comprehensive loss.

The condensed financial position and results of operations of the unconsolidated joint venture entities are as follows:

	December 31,

(in thousands):	2011		2010
Total assets	$	10,807	$	56,497

Liabilities	$	1,153	$	15,458
Shareholders' equity		9,654		41,039

Total liabilities and shareholders' equity	$	10,807	$	56,497

	Year Ended December 31,

(in thousands):	2011			2010		2009
Revenues	$	3,152		$	57,925	$	43,202
Expenses		7,186			53,876		39,811

Net income (loss)	$	(4,034	)	$	4,049	$	3,391

A summary of the changes in the equity investment in the unconsolidated joint ventures is as follows:

(in thousands):

Balance at January 1, 2009	$	2,428
Capital contributions in joint venture		15,793
Distributions		(301	)
Share of other comprehensive loss		(137	)
Equity interest in net income of joint ventures		880

Balance at December 31, 2009		18,663

Capital contributions in joint venture		2,339
Distributions		(1,007	)
Share of other comprehensive loss		(201	)
Impairment		(659	)
Equity interest in net income of joint ventures		1,001

Balance at December 31, 2010		20,136

Capital contributions in joint venture		799
Distributions		(634	)
Foreign currency transaction loss		(2	)
Impairment		(2,635	)
Sale of investment		(312	)
Consolidation of investment		(15,674	)
Purchase of investment		50
Equity interest in net income of joint ventures		(1,036	)

Balance at December 31, 2011	$	692

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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