NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Service fee revenue

Our service fee revenue, net of contractual allowances and discounts less the provision for bad debts for the years ended December 31, are summarized in the following table (in thousands):

	Years Ended December 31,
	2012			2011			2010
Commercial Insurance/Managed Care Capitation	$	447,226		$	412,791		$	373,520
Medicare		134,426			118,109			113,891
Medicaid		21,974			19,488			17,812
Workers’ Compensation/Personal Injury		29,083			25,393			23,210
Other		40,348			31,679			12,219
Service fee revenue, net of contractual allowances and discounts		673,057			607,460			540,652
Provision for bad debts		(25,904	)		(22,339	)		(21,995	)
Net service fee revenue	$	647,153		$	585,121		$	518,657

Fair values of certain of financial liabilities

The table below summarizes the estimated fair values of certain of our financial liabilities that are subject to fair value measurements, and the classification of these liabilities on our consolidated balance sheets, as follows (in thousands):

	As of December 31, 2011
	Level 1		Level 2		Level 3		Total
Accounts payable, accrued expenses and other:
Interest Rate Swaps	$	–	$	5,064	$	–	$	5,064

Fair value and carrying amount of long-term debt

The table below summarizes the estimated fair value and carrying amount of our long-term debt as follows (in thousands):

	As of December 31, 2012
	Level 1		Level 2		Level 3		Total Fair Value		Total Carrying Value
Senior Secured Term Loan	$	–	$	352,180	$	–	$	352,180	$	349,125
Senior Notes		–		204,500		–		204,500		200,000

	As of December 31, 2011
	Level 1		Level 2		Level 3		Total		Total Carrying Value
Senior Secured Term Loan	$	–	$	264,600	$	–	$	264,600	$	280,000
Senior Notes		–		180,000		–		180,000		200,000

Earnings per share

Earnings per share is based upon the weighted average number of shares of common stock and common stock equivalents outstanding, net of common stock held in treasury,  as follows (in thousands except share and per share data):

	Years Ended December 31,
	2012		2011		2010
Net income (loss) attributable to RadNet, Inc.'s common stockholders	$	64,517	$	7,231	$	(12,852	)
BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period		37,751,170		37,367,736		36,853,477
Basic net income (loss) per share attributable to RadNet, Inc.'s common stockholders	$	1.71	$	0.19	$	(0.35	)
DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period		37,751,170		37,367,736		36,853,477
Add nonvested restricted stock subject only to service vesting		533,014		–		–
Add additional shares issuable upon exercise of stock options and warrants		960,502		1,417,939		–
Weighted average number of common shares used in calculating diluted net income (loss) per share		39,244,686		38,785,675		36,853,477
Diluted net income (loss) per share attributable to RadNet, Inc.'s common stockholders	$	1.64	$	0.19	$	(0.35	)

Investment in joint ventures

This increase is summarized as follows (in thousands):

Investment in joint ventures at December 31, 2011	$	22,326
Fair value of remaining interest in de-consolidated joint venture (see Note 2)		1,936
Initial investment in joint venture imaging center  located in Cedar Knolls, New Jersey (see Note 2)		1,836
Additional investment in an existing joint venture imaging center		920
Final purchase accounting adjustment to the fair value of joint venture interests acquired with our acquisition of Raven Holdings (see Note 2)		933
Fair value of joint venture interests acquired through our acquisition of
Lenox Hill Radiology (see Note 2)		648
Equity in earnings of joint ventures for the year ended December 31, 2012		6,476
Distributions from joint ventures received during the year ended December 31, 2012		(6,477	)
Investment in joint ventures at December 31, 2012	$	28,598

Key financial data for joint ventures

The following table is a summary of key financial data for these joint ventures as of December 31, 2012 and 2011, respectively, and for the years ended December 31, 2012, 2011 and 2010, respectively, (in thousands):

	December 31,
Balance Sheet Data:	2012			2011
Current assets	$	17,026		$	16,869
Noncurrent assets		49,163			41,928
Current liabilities		(7,419	)		(9,575	)
Noncurrent liabilities		(8,997	)		(9,370	)
Total net assets	$	49,773		$	39,852
Book value of RadNet joint venture interests	$	24,712		$	18,566
Cost in excess of book value of acquired joint venture interests		3,511			3,511
Elimination of intercompany profit remaining on Radnet's consolidated balance sheet		375			249
Total value of Radnet joint venture interests	$	28,598		$	22,326
Total book value of other joint venture partner interests	$	25,061		$	21,286

Income statement data for the years ended December 31,	2012		2011		2010
Net revenue	$	85,036	$	76,076	$	76,937
Net income	$	14,031	$	11,655	$	12,639