SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

The Company’s total net revenues for the years ended December 31, are presented in the table below based on an allocation of the estimated transaction price with the patient between the primary patient classification of insurance coverage.



	2018		2017			2016
Commercial insurance	$	542,011	$	534,224		$	515,150
Medicare	192,881		179,678			173,262
Medicaid	25,615		24,133			23,272
Workers' compensation/personal injury	34,193		32,969			31,791
Other patient revenue	25,117		29,882			28,815
Management fee revenue	13,882		13,127			11,868
Imaging on call and software	16,261		18,116			19,462
Other	18,781		25,049			17,967
Service fee revenue, net of contractual allowances and discounts	868,741		857,178			821,587
Provision for bad debts	–		(46,555		)	(45,387		)
Net service fee revenue	868,741		810,623			776,200
Revenue under capitation arrangements	106,405		111,563			108,335
Total net revenue	$	975,146	$	922,186		$	884,535

Schedule of effect of derivative instruments on comprehensive income

A tabular presentation of the effect of derivative instruments on our consolidated statement of comprehensive income (loss), net of taxes is as follows (amounts in thousands):



For the twelve months ended December 31, 2018

Effective Interest Rate Cap	Amount of Gain Recognized on Derivative	Location of Gain Recognized in Income on Derivative
Interest rate contracts	$2,876	Other Comprehensive Income



For the twelve months ended December 31, 2017

Effective Interest Rate Cap	Amount of Loss Recognized on Derivative	Location of Loss Recognized in Income on Derivative
Interest rate contracts	(880)	Other Comprehensive Loss



For the twelve months ended December 31, 2016
Effective Interest Rate Cap	Amount of Gain Recognized on Derivative	Location of Gain Recognized in Income on Derivative
Interest rate contracts	$508	Other Comprehensive Income

Schedule of fair value of assets and liabilities

The table below summarizes the estimated fair value and carrying amount of our SunTrust (Term Loan Agreement) and Barclays (First Lien Term Loans) long-term debt as follows (in thousands):



	As of December 31, 2018
	Level 1		Level 2		Level 3		Total Fair Value		Total Face Value
Term Loan Agreement and First Lien Term Loans	$	—	$	633,229	$	—	$	633,229	$	646,441



	As of December 31, 2017
	Level 1		Level 2		Level 3		Total		Total Face Value
First Lien Term Loans	$	—	$	628,801	$	—	$	628,801	$	620,272

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



	As of December 31, 2018
	Level 1		Level 2		Level 3		Total
Current assets
Interest Rate Contracts	$	—	$	3,316	$	—	$	3,316



	As of December 31, 2017
	Level 1		Level 2			Level 3		Total
Current liabilities
Interest Rate Contracts	$	—	$	(595	)	$	—	$	(595	)

Schedule of 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,
	2018		2017		2016
Net income attributable to RadNet, Inc. common stockholders	$	32,243	$	53	$	7,230

BASIC NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period	48,114,275		46,880,775		46,244,188
Basic net income per share attributable to RadNet, Inc. common stockholders	$	0.67	$	—	$	0.16
DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period	48,114,275		46,880,775		46,244,188
Add nonvested restricted stock subject only to service vesting	180,631		274,940		220,416
Add additional shares issuable upon exercise of stock options and warrants	384,093		246,206		190,428
Weighted average number of common shares used in calculating diluted net income per share	48,678,999		47,401,921		46,655,032
Diluted net income per share attributable to RadNet, Inc. common stockholders	$	0.66	$	—	$	0.15

Stock options excluded from the computation of diluted per share amounts:
Weighted average shares for which the exercise price exceeds average market price of common stock	6,250		175,037		245,313

Schedule of investment in joint ventures

The following table is a summary of our investment in joint ventures during the years ended December 31, 2018 and December 31, 2017 (in thousands):



Balance as of December 31, 2016	$	43,509
Equity contributions in existing and purchase of interest in joint ventures	4,062
Equity in earnings in these joint ventures	13,554
Distribution of earnings	(8,690		)
Balance as of December 31, 2017	$	52,435
Equity contributions in existing and purchase of interest in joint ventures	2,000
Equity in earnings in these joint ventures	11,377
Disposition of equity method interest upon acquisition of control in NJIN	(2,993		)
Distribution of earnings	(24,846		)
Balance as of December 31, 2018	$	37,973

Joint venture investment and financial information

The following table is a summary of key unaudited financial data for these joint ventures as of December 31, 2018 and 2017, respectively, and for the years ended December 31, 2018, 2017 and 2016, respectively, (in thousands):



	December 31,
Balance Sheet Data:	2018			2017
Current assets	$	28,317		$	47,813
Noncurrent assets	45,912			107,481
Current liabilities	(4,300		)	(16,655		)
Noncurrent liabilities	(4,898		)	(42,072		)
Total net assets	$	65,031		$	96,567
Book value of RadNet joint venture interests	$	30,030		$	45,935
Cost in excess of book value of acquired joint venture interests accounted for as equity method goodwill	7,943			6,500
Total value of RadNet joint venture interests	$	37,973		$	52,435
Total book value of other joint venture partner interests	$	35,001		$	50,632



	2018		2017		2016
Net revenue	$	155,820	$	188,849	$	160,134
Net income	$	24,596	$	28,644	$	21,933