5. INVESTMENT IN JOINT VENTURES

3 Months Ended

Mar. 31, 2013

Investment In Joint Ventures

Equity Method Investments and Joint Ventures Disclosure [Text Block]

We have eight unconsolidated joint ventures with ownership interests ranging from 35% to 50%. These joint ventures represent partnerships with hospitals, health systems or radiology practices and were formed for the purpose of owning and operating diagnostic imaging centers.  Professional services at the joint venture diagnostic imaging centers are performed by contracted radiology practices or a radiology practice that participates in the joint venture.  Our investment in these joint ventures is accounted for under the equity method.   Investment in joint ventures decreased approximately $639,000 to $28.0 million at March 31, 2013 compared to $28.6 million at December 31, 2012.  This decrease is primarily related to our purchase of a controlling interest in one of these investments resulting in our reclassification of approximately $648,000 out of this balance as we now consolidate this imaging center business (see Note 2 above for more details regarding this transaction). Additionally, during the three months ended March 31, 2013 we recorded equity earnings of approximately $1.2 million, made additional equity contributions of $724,000 and received our respective share of distributions of $1.9 million.  

We received management service fees from the centers underlying these joint ventures of approximately $2.0 million and $1.9 million for the three months ended March 31, 2013 and 2012, respectively, and eliminated the uncollected portion of the fees earned associated with our ownership from our net revenue with an offsetting increase to our equity earnings.

The following table is a summary of key financial data for these joint ventures as of March 31, 2013 and for the three months ended March 31, 2013 and 2012 (in thousands):

Balance Sheet Data:		March 31, 2013
Current assets	$	15,277
Noncurrent assets		44,169
Current liabilities		(5,537	)
Noncurrent liabilities		(5,871	)
Total net assets	$	48,038
Book value of Radnet joint venture interests	$	22,422
Cost in excess of book value of acquired joint venture interests		5,232
Elimination of intercompany profit remaining on Radnet's consolidated balance sheet		305
Total value of Radnet joint venture interests	$	27,959
Total book value of other joint venture partner interests	$	25,616
Income Statement Data for the three months ended March 31,		2013			2012
Net revenue	$	22,281		$	21,076
Net income	$	2,733		$	2,533