NOTE 3 - ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLES AND MANAGEMENT AND OTHER FEES RECEIVABLE (USD $)

3 Months Ended

Mar. 31, 2013

Receivables [Abstract]

NOTE 3 - ACCOUNTS RECEIVABLE. MEDICAL RECEIVABLES AND MANAGEMENT AND OTHER FEES RECEIVABLE (USD $)

NOTE 3 – ACCOUNTS RECEIVABLE, MEDICAL RECEIVABLES AND MANAGEMENT AND OTHER FEES RECEIVABLE

Receivables, net is comprised of the following at March 31, 2013:

(000’s Omitted)

	Gross Receivable		Allowance for Doubtful accounts		Net
Receivables from equipment sales and service contracts	$	6,854	$	1,861	$	4,993
Receivables from equipment sales and service contracts – related party	$	30		—	$	30
Medical receivables	$	6,635	$	2,122	$	4,513
Management and other fees Receivables	$	23,003	$	8,183	$	14,820
Management and other fees receivables from related medical practices ("PC’s")	$	2,799	$	403	$	2,396

The Company's customers are concentrated in the healthcare industry.

The Company recognizes patient revenue as imaging services are provided. Revenue is reported at the estimated net realizable amount from insurance companies, third-party payors, hospitals, patients and others for services rendered. These services are typically billed to insurance companies, hospitals, patients, or the patient’s legal counsel. Substantially all the revenue relates to patients residing in Florida. The carrying amount of the medical receivable may be reduced by an allowance that reflects management’s best estimate of the amounts that will not be collected. The Company determines allowances for contractual adjustments and uncollectible accounts based on specific agings and payor classifications at each center.

The Company's receivables from the related and non-related professional corporations (PC's) substantially consist of fees outstanding under management agreements. Payment of the outstanding fees is dependent on collection by the PC's of fees from third party medical reimbursement organizations, principally insurance companies and health management organizations.

Payment of the management fee receivables from the PC’s may be impaired by the inability of the PC’s to collect in a timely manner their medical fees from the third party payors, particularly insurance carriers covering automobile no-fault and workers compensation claims due to longer payment cycles and rigorous informational requirements and certain other disallowed claims. Approximately 47% and 61% of the PC's net revenues for the nine months ended March 31, 2013 and 2012, respectively, were derived from no-fault and personal injury protection claims. The Company considers the aging of its accounts receivable in determining the amount of allowance for doubtful accounts. The Company generally takes all legally available steps to collect its receivables. Credit losses associated with the receivables are provided for in the condensed consolidated financial statements and have historically been within management's expectations.

Net revenues from management and other fees charged to the related PCs accounted for approximately 19.2% and 16.6% of the consolidated net revenues for the nine months ended March 31, 2013 and 2012, respectively.

Tallahassee Magnetic Resonance Imaging, PA, Stand Up MRI of Boca Raton, PA and Stand Up MRI & Diagnostic Center, PA (all related medical practices) entered into a guaranty agreement, pursuant to which they cross guaranteed all management fees which are payable to the Company, which have arisen under each individual management agreement.