7. INVESTMENT IN JOINT VENTURES

3 Months Ended

Mar. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN JOINT VENTURES

We have ten 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.

The following table is a roll forward of our investment in joint ventures during the three months ended March 31, 2016 (in thousands):

Balance as of December 31, 2015	$	33,584
Equity in earnings in these joint ventures		2,279
Distribution of earnings		(2,038	)
Contributions paid		294
Balance as of March 31, 2016	$	34,119

We earned management service fees from the centers underlying these joint ventures of approximately $2.9 million and $2.4 million for the three months ended March 31, 2016 and 2015, respectively. At the end of the period we eliminate from total fees recorded the uncollected portion of these fees that are associated with our ownership interests and offset this with an increase to our equity earnings.

The following table is a summary of key financial data for these joint ventures as of March 31, 2016 and for the three months ended March 2016 and 2015 (in thousands):

Balance Sheet Data:	March 31, 2016
Current assets	$	23,511
Noncurrent assets		90,320
Current liabilities		(9,900	)
Noncurrent liabilities		(42,122	)
Total net assets	$	61,809
Book value of RadNet joint venture interests	$	29,148
Cost in excess of book value of acquired joint venture interests		4,971
Total value of Radnet joint venture interests	$	34,119
Total book value of other joint venture partner interests	$	32,661

Income statement data for the three months ended March 31,	2016		2015
Net revenue	$	39,220	$	26,442
Net income	$	5,614	$	3,030