RadNet (RDNT) 10-K16 Mar 152014 FY Annual reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2014	Mar. 10, 2015	Jun. 30, 2014
NonPlanOutstandingWarrantsMember
Entity Registrant Name	RadNet, Inc.
Entity Central Index Key	790526
Document Type	10-K
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		43,654,575
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2014
Entity Public Float			$217,067,115

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash and cash equivalents	$307	$8,412
Accounts receivable, net	148,235	133,599
Current portion of deferred tax assets	17,246	13,321
Due from affiliates	1,561	0
Prepaid expenses and other current assets	24,671	21,012
Total current assets	192,020	176,344
PROPERTY AND EQUIPMENT, NET	223,127	218,547
OTHER ASSETS
Goodwill	200,304	196,395
Other intangible assets	47,624	50,042
Deferred financing costs, net of current portion	6,122	8,735
Investment in joint ventures	32,123	28,949
Deferred tax assets, net of current portion	35,334	39,914
Deposits and other	4,026	3,650
Total assets	740,680	722,576
CURRENT LIABILITIES
Accounts payable, accrued expenses and other	97,816	106,316
Due to affiliates	6,289	2,655
Deferred revenue	1,964	1,344
Current portion of notes payable	19,468	3,103
Current portion of deferred rent	2,100	1,896
Current portion of obligations under capital leases	5,637	3,075
Total current liabilities	133,274	118,389
LONG-TERM LIABILITIES
Deferred rent, net of current portion	20,965	18,989
Line of credit	15,300	0
Notes payable, net of current portion	551,059	572,669
Obligations under capital lease, net of current portion	6,143	2,779
Other non-current liabilities	6,241	7,540
Total liabilities	732,982	720,366
EQUITY
Common stock - $.0001 par value, 200,000,000 shares authorized;42,825,676, and 40,089,196 shares issued and outstanding at December 31, 2014 and 2013, respectively	4	4
Paid-in-capital	177,750	173,622
Accumulated other comprehensive (loss) income	-112	-50
Accumulated deficit	-172,280	-173,656
Total Radnet, Inc.'s stockholders' equity (deficit)	5,362	-80
Noncontrolling interests	2,336	2,290
Total equity	7,698	2,210
Total liabilities and equity	$740,680	$722,576

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Common stock - par value (in Dollars per share)	$0.00	$0.00
Common stock - shares authorized	200,000,000	200,000,000
Common stock - shares issued	42,825,676	40,089,196
Common stock - shares outstanding	42,825,676	40,089,196

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
NET REVENUE
Service fee revenue, net of contractual allowances and discounts	$670,136	$665,307	$617,982
Provision for bad debts	-29,807	-27,911	-25,904
Net service fee revenue	640,329	637,396	592,078
Revenue under capitation arrangements	77,240	65,590	55,075
Total net revenue	717,569	702,986	647,153
OPERATING EXPENSES
Cost of operations, excluding depreciation and amortization	602,652	598,655	542,993
Depreciation and amortization	59,258	58,890	57,740
Loss (gain) on sale and disposal of equipment	1,113	1,032	456
Severance costs	1,241	806	736
Total operating expenses	664,264	659,383	601,925
INCOME FROM OPERATIONS	53,305	43,603	45,228
OTHER INCOME AND EXPENSES
Interest expense	42,727	45,791	53,783
Meaningful use incentive	-2,034	0	0
Equity in earnings of joint ventures	-6,970	-6,194	-6,476
Gain on sale of imaging centers	0	-2,108	0
Gain on de-consolidation of joint venture	0	0	-2,777
Loss on early extinguishment of Senior Notes	15,927	0	0
Other expenses (income)	3	228	-3,679
Total other expenses	49,653	37,717	40,851
INCOME BEFORE INCOME TAXES	3,652	5,886	4,377
(Provision for) benefit from income taxes	-1,967	-3,510	55,227
NET INCOME	1,685	2,376	59,604
Net income (loss) attributable to noncontrolling interests	309	256	-230
NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS	$1,376	$2,120	$59,834
BASIC NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS	$0.03	$0.05	$1.58
DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS	$0.03	$0.05	$1.52
Weighted average shares outstanding - Basic	41,070,077	39,140,480	37,751,170
Weighted average shares outstanding - Diluted	43,149,196	39,814,535	39,244,686

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
NET INCOME	$1,685	$2,376	$59,604
Foreign currency translation adjustments	-62	-89	67
Reclassification of net cash flow hedge losses included in net loss during the period	0	0	918
COMPREHENSIVE INCOME	1,623	2,287	60,589
Less comprehensive (loss) income attributable to non-controlling interests	309	256	-230
COMPREHENSIVE INCOME ATTRIBUTIBLE TO RADNET, INC. COMMON STOCKHOLDERS	$1,314	$2,031	$60,819

CONSOLIDATED_STATEMENT_OF_EQUI

CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) (USD $)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total Radnet, Inc. Stockholders (Deficit) Equity	Noncontrolling Interest	Total
In Thousands, except Share data	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total Radnet, Inc. Stockholders (Deficit) Equity	Noncontrolling Interest	Total
Beginning balance, value at Dec. 31, 2011	$4	$165,796	($235,610)	($946)	($70,756)	$949	($69,807)
Beginning balance, shares at Dec. 31, 2011	37,426,460
Issuance of common stock upon exercise of options/warrants, shares	74,022
Stock-based compensation		2,736			2,736		2,736
Purchase of non-controlling interests		-117			-117		-117
De-consolidation of joint venture						-14	-14
Issuance of restricted stock, shares	1,040,000
Dividends paid to noncontrolling interests						-71	-71
Change in cumulative foreign currency translation adjustment				67	67		67
Change in fair value of cash flow hedge from prior periods reclassified to earnings				918	918		918
Net income			59,834		59,834	-230	59,604
Ending balance, value at Dec. 31, 2012	4	168,415	-175,776	39	-7,318	634	-6,684
Ending balance, shares at Dec. 31, 2012	38,540,482
Issuance of common stock upon exercise of options/warrants, shares	898,714
Issuance of common stock upon exercise of options/warrants		469			469		469
Stock-based compensation		2,537			2,537		2,537
Sale of a noncontrolling interest in one of our consolidated joint ventures		2,201			2,201	439	2,640
Purchase of non-controlling interests						979	979
Issuance of restricted stock, shares	650,000
Dividends paid to noncontrolling interests						-18	-18
Change in cumulative foreign currency translation adjustment				-89	-89		-89
Change in fair value of cash flow hedge from prior periods reclassified to earnings							0
Net income			2,120		2,120	256	2,376
Ending balance, value at Dec. 31, 2013	4	173,622	-173,656	-50	-80	2,290	2,210
Ending balance, shares at Dec. 31, 2013	40,089,196
Issuance of common stock upon exercise of options/warrants, shares	1,579,695
Issuance of common stock upon exercise of options/warrants		1,546			1,546		1,546
Stock-based compensation		2,463			2,463		2,463
Sale of a noncontrolling interest in one of our consolidated joint ventures						200	200
Purchase of non-controlling interests		119			119	-315	-196
Issuance of restricted stock, shares	1,156,785
Dividends paid to noncontrolling interests						-148	-148
Change in cumulative foreign currency translation adjustment				-62	-62		-62
Change in fair value of cash flow hedge from prior periods reclassified to earnings							0
Net income			1,376		1,376	309	1,685
Ending balance, value at Dec. 31, 2014	$4	$177,750	($172,280)	($112)	$5,362	$2,336	$7,698
Ending balance, shares at Dec. 31, 2014	42,825,676

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$1,685	$2,376	$59,604
Depreciation and amortization	59,258	58,890	57,740
Provision for bad debts	29,807	27,911	25,904
Equity in earnings of joint ventures	-6,970	-6,194	-6,476
Distributions from joint ventures	7,358	7,204	6,477
Deferred rent amortization	2,180	3,871	3,608
Amortization and write off of deferred financing costs and loan discount	5,732	4,565	3,637
Loss on sale and disposal of equipment	1,113	1,032	456
Gain on bargain purchase	0	0	-810
Loss on early extinguishment of Senior Notes	15,927	0	0
Gain on sale of imaging centers and de-consolidation of joint venture	0	-2,108	-2,777
Amortization of cash flow hedge	0	0	918
Stock-based compensation	2,500	2,574	2,736
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions:
Accounts receivable	-43,973	-31,531	-17,350
Other current assets	-5,514	-2,243	3,565
Other assets	-281	260	-578
Deferred taxes	655	2,907	-56,142
Deferred revenue	620	71	197
Accounts payable and accrued expenses and other	-9,093	-3,163	-5,440
Net cash provided by operating activities	61,004	66,422	75,269
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of imaging facilities	-9,428	-7,223	-45,493
Purchase of property and equipment	-41,740	-48,623	-44,448
Proceeds from sale of equipment	1,088	635	1,549
Proceeds from sale of imaging facilities	0	3,920	2,300
Proceeds from sale of joint venture interests	0	2,640	1,800
Equity contributions in existing and purchase of interest in joint ventures	-3,562	-2,009	-2,756
Net cash used in investing activities	-53,642	-50,660	-87,048
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on notes and leases payable	-23,913	-9,764	-22,223
Proceeds from borrowings	210,000	35,122	344,485
Payments on Senior Notes	-211,344	0	-277,875
Deferred financing costs	-6,650	-432	-3,753
Net proceeds (payments) on revolving credit facility	15,300	-33,000	-25,000
Payments on interest rate swaps, net of amounts received	0	0	-5,823
Dividends paid to noncontrolling interests	-148	-18	-71
Equity attributable to non-controlling interests	0	0	-117
Purchase on non-controlling interests	-196	0	0
Proceeds from issuance of common stock upon exercise of options/warrants	1,546	469	0
Net cash (used in) provided by financing activities	-15,405	-7,623	9,623
EFFECT OF EXCHANGE RATE CHANGES ON CASH	-62	-89	63
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	-8,105	8,050	-2,093
CASH AND CASH EQUIVALENTS, beginning of period	8,412	362	2,455
CASH AND CASH EQUIVALENTS, end of period	307	8,412	362
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest	41,584	41,841	47,806
Cash paid during the period for income taxes	1,070	1,142	918
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Purchase of equipment and leasehold improvements not yet paid for	19,400	16,700	14,400
Capital lease debt related to radiology equipment	$12,600

1_NATURE_OF_BUSINESS

1. NATURE OF BUSINESS	12 Months Ended
1. NATURE OF BUSINESS	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	We provide diagnostic imaging services including magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), nuclear medicine, mammography, ultrasound, diagnostic radiology (X-ray), fluoroscopy and other related procedures. At December 31, 2014, we operated directly or indirectly through joint ventures, imaging centers located in California, Delaware, Florida, Maryland, New Jersey, New York, and Rhode Island. Our operations comprise a single segment for financial reporting purposes.

	The consolidated financial statements include the accounts of Radnet Management, Inc. (or “Radnet Management”) and Beverly Radiology Medical Group III, a professional partnership (“BRMG”). The consolidated financial statements also include Radnet Management I, Inc., Radnet Management II, Inc., Radiologix, Inc., Radnet Managed Imaging Services, Inc., Delaware Imaging Partners, Inc., New Jersey Imaging Partners, Inc. and Diagnostic Imaging Services, Inc. (“DIS”), all wholly owned subsidiaries of Radnet Management. All of these affiliated entities are referred to collectively as “RadNet”, “we”, “us”, “our” or the “Company” in this report.

	Accounting Standards Codification (“ASC”) Section 810-10-15-14 stipulates that generally any entity with a) insufficient equity to finance its activities without additional subordinated financial support provided by any parties, or b) equity holders that, as a group, lack the characteristics specified in the ASC which evidence a controlling financial interest, is considered a Variable Interest Entity (“VIE”). We consolidate all VIEs in which we are the primary beneficiary. We determine whether we are the primary beneficiary of a VIE through a qualitative analysis that identifies which variable interest holder has the controlling financial interest in the VIE. The variable interest holder who has both of the following has the controlling financial interest and is the primary beneficiary: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. In performing our analysis, we consider all relevant facts and circumstances, including: the design and activities of the VIE, the terms of the contracts the VIE has entered into, the nature of the VIE’s variable interests issued and how they were negotiated with or marketed to potential investors, and which parties participated significantly in the design or redesign of the entity.

	Howard G. Berger, M.D. is our President and Chief Executive Officer, a member of our Board of Directors and is deemed to be the beneficial owner, directly and indirectly, of approximately 12.6% of our outstanding common stock as of December 31, 2014. Dr. Berger also owns, indirectly, 99% of the equity interests in BRMG. BRMG provides all of the professional medical services at the majority of our facilities located in California under a management agreement with us, and employs physicians or contracts with various other independent physicians and physician groups to provide the professional medical services at most of our other California facilities. We generally obtain professional medical services from BRMG in California, rather than provide such services directly or through subsidiaries, in order to comply with California’s prohibition against the corporate practice of medicine. However, as a result of our close relationship with Dr. Berger and BRMG, we believe that we are able to better ensure that medical service is provided at our California facilities in a manner consistent with our needs and expectations and those of our referring physicians, patients and payors than if we obtained these services from unaffiliated physician groups. BRMG is a partnership of ProNet Imaging Medical Group, Inc., Breastlink Medical Group, Inc. and Beverly Radiology Medical Group, Inc., each of which is 99% or 100% owned by Dr. Berger.

	John V Crues, III, M.D. is our Medical Director, a member of our Board of Directors and a 1% owner of BRMG. Dr. Crues owns a controlling interest in two medical groups (“Crues Entities”) which provide professional medical services at some of our facilities in Manhattan and Brooklyn, New York while Dr. Berger owns a controlling interest in two medical groups (“NY Berger Entities”) which provide professional medical services at one of our Manhattan, New York facilities. The Crues Entities and the NY Berger Entities are collectively hereinafter referred to as the “B&C Entities.”

	RadNet provides non-medical, technical and administrative services to BRMG and the B&C Entities for which it receives a management fee, pursuant to the related management agreements. Through the management agreement and our relationship with Dr. Berger and Dr. Crues, we have exclusive authority over all non-medical decision making related to the ongoing business operations of BRMG and the B&C Entities. Through our management agreement with BRMG and the B&C Entities, we determine the annual budget of BRMG and the B&C Entities and make all physician employment decisions. BRMG and the B&C Entities both have insignificant operating assets and liabilities, and de minimis equity. Through the management agreement with us, all cash flows of BRMG and the B&C Entities are transferred to us.

	We have determined that BRMG and the B&C Entities are variable interest entities, and that we are the primary beneficiary, and consequently, we consolidate the revenue and expenses, assets and liabilities of each. BRMG and the B&C Entities on a combined basis recognized $89.3 million, $76.7 million and $53.4 million of revenue, net of management service fees to RadNet, for the years ended December 31, 2014, 2013 and 2012, respectively, and $89.3 million, $76.7 million and $53.4 million of operating expenses for the years ended December 31, 2014, 2013 and 2012, respectively. RadNet recognized $287.4 million, $267.6 million and $208.7 million of net revenues for the years ended December 31, 2014, 2013 and 2012, respectively, for management services provided to BRMG and the B&C Entities relating primarily to the technical portion of total billed revenue. The cash flows of BRMG and the B&C Entities are included in the accompanying consolidated statements of cash flows. All intercompany balances and transactions have been eliminated in consolidation. In our consolidated balance sheets at December 31, 2014 and 2013, we have included approximately $79.7 million and $65.2 million, respectively, of accounts receivable and approximately $9.0 million and $11.9 million of accounts payable and accrued liabilities related to BRMG and the B&C Entities.

	The creditors of BRMG and the B&C Entities do not have recourse to our general credit and there are no other arrangements that could expose us to losses on behalf of BRMG and the B&C Entities. However, both BRMG and the B&C Entities are managed to recognize no net income or net loss and, therefore, RadNet may be required to provide financial support to cover any operating expenses in excess of operating revenues.

	Aside from centers in California where we contract with BRMG for the provision of professional medical services and centers in New York, New York, where we contract with the B&C Entities for the provision of professional medical services, at the remaining centers in California and at all of the centers which are located outside of California and New York, New York, we have entered into long-term contracts with independent radiology groups in the area to provide physician services at those facilities. These third party radiology practices provide professional services, including supervision and interpretation of diagnostic imaging procedures, in our diagnostic imaging centers. The radiology practices maintain full control over the provision of professional services. In these facilities we enter into long-term agreements with radiology practice groups (typically 40 years). Under these arrangements, in addition to obtaining technical fees for the use of our diagnostic imaging equipment and the provision of technical services, we provide management services and receive a fee based on the practice group’s professional revenue, including revenue derived outside of our diagnostic imaging centers. We own the diagnostic imaging equipment and, therefore, receive 100% of the technical reimbursements associated with imaging procedures. The radiology practice groups retain the professional reimbursements associated with imaging procedures after deducting management service fees paid to us. We have no financial controlling interest in the independent (non-BRMG/B&C Entity) radiology practices; accordingly, we do not consolidate the financial statements of those practices in our consolidated financial statements.

2_SUMMARY_OF_SIGNIFICANT_ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2014
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	PRINCIPLES OF CONSOLIDATION - The operating activities of subsidiaries are included in the accompanying consolidated financial statements from the date of acquisition. Investments in companies in which the Company has the ability to exercise significant influence, but not control, are accounted for by the equity method. All intercompany transactions and balances, including the unsettled amount of intercompany transactions with our equity method investees, have been eliminated in consolidation. As stated in Note 1 above, the BRMG and Cruse Entities are variable interest entities and we consolidate the operating activities and balance sheets of each.

	USE OF ESTIMATES - The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions affect various matters, including our reported amounts of assets and liabilities in our consolidated balance sheets at the dates of the financial statements; our disclosure of contingent assets and liabilities at the dates of the financial statements; and our reported amounts of revenues and expenses in our consolidated statements of operations during the reporting periods. These estimates involve judgments with respect to numerous factors that are difficult to predict and are beyond management’s control. As a result, actual amounts could materially differ from these estimates.

	RECLASSIFICATION – We have reclassified certain amounts in the 2013 and 2012 statements of cash flows to conform to the year end 2014 presentation.

	REVENUES - Service fee revenue, net of contractual allowances and discounts, consists of net patient fees received from various payors and patients themselves based mainly upon established contractual billing rates, less allowances for contractual adjustments and discounts. As it relates to BRMG and the B&C Entity centers, this service fee revenue includes payments for both the professional medical interpretation revenue recognized by BRMG and the B&C Entities as well as the payment for all other aspects related to our providing the imaging services, for which we earn management fees from BRMG and the B&C Entities. As it relates to non-BRMG and B&C Entity centers, this service fee revenue is earned through providing the use of our diagnostic imaging equipment and the provision of technical services as well as providing administration services such as clerical and administrative personnel, bookkeeping and accounting services, billing and collection, provision of medical and office supplies, secretarial, reception and transcription services, maintenance of medical records, and advertising, marketing and promotional activities.

	Service fee revenues are recorded during the period the services are provided based upon the estimated amounts due from the patients and third-party payors. Third-party payors include federal and state agencies (under the Medicare and Medicaid programs), managed care health plans, commercial insurance companies and employers. Estimates of contractual allowances under managed care health plans are based upon the payment terms specified in the related contractual agreements. Contractual payment terms in managed care agreements are generally based upon predetermined rates per discounted fee-for-service rates. We also record a provision for doubtful accounts (based primarily on historical collection experience) related to patients and copayment and deductible amounts for patients who have health care coverage under one of our third-party payors.

	Under capitation arrangements with various health plans, we earn a per-enrollee amount each month for making available diagnostic imaging services to all plan enrollees under the capitation arrangement. Revenue under capitation arrangements is recognized in the period which we are obligated to provide services to plan enrollees under contracts with various health plans.

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

		Years Ended December 31,
		2014			2013			2012
	Commercial insurance ⁽¹⁾	$	418,414		$	415,408		$	409,114
	Medicare		157,923			156,066			122,971
	Medicaid		24,248			24,017			20,101
	Workers' compensation/personal injury		30,230			34,821			26,604
	Other		39,321			34,995			39,192
	Service fee revenue, net of contractual allowances and discounts		670,136			665,307			617,982
	Provision for bad debts		(29,807	)		(27,911	)		(25,904	)
	Net service fee revenue		640,329			637,396			592,078
	Revenue under capitation arrangements		77,240			65,590			55,075
	Total net revenue	$	717,569		$	702,986		$	647,153
	__________
	(1) 20% of our net service fees revenue for each of the years ended December 31, 2014, 2013 and 2012 were earned from a single payor.

	PROVISION FOR BAD DEBTS - We provide for an allowance against accounts receivable that could become uncollectible to reduce the carrying value of such receivables to their estimated net realizable value. We estimate this allowance based on the aging of our accounts receivable by each type of payer over an 18-month look-back period and other relevant factors. A significant portion of our provision for bad debt relates to co-payments and deductibles owed to us from patients with insurance. Although we attempt to collect deductibles and co-payments due from patients with insurance at the time of service, this attempt to collect at the time of service is not an assessment of the patient’s ability to pay nor are revenues recognized based on an assessment of the patient’s ability to pay. There are various factors that can impact collection trends, such as changes in the economy, which in turn have an impact on the increased burden of co-payments and deductibles to be made by patients with insurance. These factors continuously change and can have an impact on collection trends and our estimation process. Our allowances for bad debts at December 31, 2014 and 2013 were $15.1 million and $12.7 million, respectively.

	MEANINGFUL USE INCENTIVE - Under the American Recovery and Reinvestment Act of 2009, a program was enacted that provides financial incentives for providers that successfully implement and utilize electronic health record technology to improve patient care. Our software development team in Canada established an objective to build a Radiology Information System (RIS) software platform that has been awarded Meaningful Use certification. As this certified RIS system is implemented throughout our imaging centers, the radiologists that utilize this software can be eligible for the available financial incentives. In order to receive such incentive payments providers must attest that they have demonstrated meaningful use of the certified RIS in each stage of the program. We account for this meaningful use incentive under the Gain Contingency Model outlined in ASC 450-30. Under this model, we record within non-operating income, meaningful use incentive only after Medicare accepts an attestation from the qualified eligible professional demonstrating meaningful use. We recorded approximately $2.0 million during the twelve months ended December 31, 2014 relating to this incentive. This amount was earned under a Medicare program to promote the use of electronic health record technology. Our compliance with meaningful use criteria is subject to audit by the federal government.

	ACCOUNTS RECEIVABLE - Substantially all of our accounts receivable are due under fee-for-service contracts from third party payors, such as insurance companies and government-sponsored healthcare programs, or directly from patients. Services are generally provided pursuant to one-year contracts with healthcare providers. We continuously monitor collections from our payors and maintain an allowance for bad debts based upon specific payor collection issues that we have identified and our historical experience.

	SOFTWARE REVENUE RECOGNITION – Our subsidiary, eRAD, Inc., sells Picture Archiving Communications Systems (“PACS”) and related services, primarily in the United States. The PACS systems sold by eRAD are primarily composed of certain elements: hardware, software, installation and training, and support. Sales are made primarily through eRAD’s sales force. These sales are multiple-element arrangements that generally include hardware, software, software installation, configuration, system installation, training and first-year warranty support. Hardware, which is not unique or special purpose, is purchased from a third-party and resold to eRAD’s customers with a small mark-up.

	We have determined that our core software products, such as PACS, are essential to most of our arrangements as hardware, software and related services are sold as an integrated package. Therefore, these transactions are accounted for under ASC 605-25, Multiple-Element Arrangements (as modified by ASU 2009-13). Non-essential software and related services, and essential software sold on a stand-alone basis without hardware, would continue to be accounted for under ASC 985-605, Software.

	We recognize revenue for four units of accounting, hardware, software, installation (including manufacturing and configuration, training, implementation and project management) and post-contract support (“PCS”), as follows:

	•		Hardware – Revenue is recognized when the hardware is shipped. The hardware qualifies as a separate unit of accounting under ASC 605-25-25-5, as it meets the following criteria:
	o		The hardware has standalone value as it is sold separately by other vendors and the customer could resell the hardware on a standalone basis; and
	o		Delivery or performance of the undelivered items is probable and substantially within our control.
	•		Software– We sell essential software. This software revenue is recognized along with the related hardware revenue.
	•		Installation – Installation revenue related to essential software that is sold with hardware, is recognized when the installation is completed, as it qualifies as a separate unit of accounting once delivered as it can be provided by a third party.
	•		Post-Contract Support – Revenue is recognized over the term of the agreement, usually one year.

	Our transactions do not generally contain refund provisions. We allocate the transaction price to each unit of accounting using relative selling price. We consider historical pricing, list price and market considerations in determining estimated selling price in the allocation.

	For the years ended December 31, 2014, 2013 and 2012, we recorded approximately $5.5 million, $4.9 million and $4.9 million, respectively, in revenue related to our eRAD business which is included in net service fee revenue in our consolidated statement of operations. At December 31, 2014 we had a deferred revenue liability of approximately $1.9 million associated with eRAD sales which we expect to recognize into revenue over the next 12 months.

	SOFTWARE DEVELOPMENT COSTS - Costs related to the research and development of new software products and enhancements to existing software products all for resale to our customers are expensed as incurred.

	We utilize a variety of computerized information systems in the day to day operation of our diagnostic imaging facilities. One such system is our front desk patient tracking system or Radiology Information System (“RIS”). We have historically utilized third party RIS software solutions and pay monthly fees to outside third party software vendors for the use of this software. We have developed our own RIS solution from the ground up through our wholly owned subsidiary, Radnet Management Information Systems (“RMIS”) and expect to utilize this system beginning in the first quarter of 2015.

	By following the accounting guidance under ASC 350-40, Accounting for the Costs of Computer Software Developed for Internal Use, the costs incurred by RMIS toward the development of this RIS system, which began on August 1, 2010 and continued until December 2014, were capitalized and will be amortized over its useful life which we determined to be 5 years. Total costs capitalized were approximately $6.4 million. Amortization of $107,000 per month will start in January 2015.

	CONCENTRATION OF CREDIT RISKS - Financial instruments that potentially subject us to credit risk are primarily cash equivalents and accounts receivable. We have placed our cash and cash equivalents with one major financial institution. At times, the cash in the financial institution is temporarily in excess of the amount insured by the Federal Deposit Insurance Corporation, or FDIC. Substantially all of our accounts receivable are due under fee-for-service contracts from third party payors, such as insurance companies and government-sponsored healthcare programs, or directly from patients. Services are generally provided pursuant to one-year contracts with healthcare providers. We continuously monitor collections from our clients and maintain an allowance for bad debts based upon our historical collection experience.

	CASH AND CASH EQUIVALENTS - We consider all highly liquid investments that mature in three months or less when purchased to be cash equivalents. The carrying amount of cash and cash equivalents approximates their fair market value.

	DEFERRED FINANCING COSTS - Costs of financing are deferred and amortized on a straight-line basis over the life of the associated loan, which approximates the effective interest rate method. Deferred financing costs, net of accumulated amortization, were $6.7 million and $10.0 million, for the years ended December 31, 2014 and 2013, respectively. As part of our early extinguishment of senior notes during March and April of 2014, approximately $3.4 million of deferred financing costs were written off. See Note 8, Notes Payable, Line of Credit, and Capital Leases for more information.

INVENTORIES - Inventories, consisting mainly of medical supplies, are stated at the lower of cost or market with cost determined by the first-in, first-out method.

PROPERTY AND EQUIPMENT - Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are provided using the straight-line method over the estimated useful lives, which range from 3 to 15 years. Leasehold improvements are amortized at the lesser of lease term or their estimated useful lives, whichever is shorter, which range from 3 to 30 years. Maintenance and repairs are charged to expense as incurred.

GOODWILL AND INDEFINITE LIVED INTANGIBLES - Goodwill at December 31, 2014 totaled $200.3 million. Indefinite Lived Intangible Assets at December 31, 2014 totaled $7.5 million and are associated with the value of certain trade name intangibles. Goodwill and trade name intangibles are recorded as a result of business combinations. Management evaluates goodwill and trade name intangibles, at a minimum, on an annual basis and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The fair value of a reporting unit is estimated using a combination of the income or discounted cash flows approach and the market approach, which uses comparable market data. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. Impairment of trade name intangibles is tested at the subsidiary level by comparing the subsidiary’s trade name carrying amount to its respective fair value. We tested both goodwill and trade name intangibles for impairment on October 1, 2014, noting no impairment, and have not identified any indicators of impairment through December 31, 2014.

LONG-LIVED ASSETS - We evaluate our long-lived assets (property and equipment) and intangibles, other than goodwill, for impairment whenever indicators of impairment exist. The accounting standards require that if the sum of the undiscounted expected future cash flows from a long-lived asset or definite-lived intangible is less than the carrying value of that asset, an asset impairment charge must be recognized. The amount of the impairment charge is calculated as the excess of the asset’s carrying value over its fair value, which generally represents the discounted future cash flows from that asset or in the case of assets we expect to sell, at fair value less costs to sell. No indicators of impairment were identified with respect to our long-lived assets as of December 31, 2014.

INCOME TAXES - Income tax expense is computed using an asset and liability method and using expected annual effective tax rates. Under this method, deferred income tax assets and liabilities result from temporary differences in the financial reporting bases and the income tax reporting bases of assets and liabilities. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefit that, based on available evidence, is not expected to be realized. When it appears more likely than not that deferred taxes will not be realized, a valuation allowance is recorded to reduce the deferred tax asset to its estimated realizable value. For net deferred tax assets we consider estimates of future taxable income in determining whether our net deferred tax assets are more likely than not to be realized. Income taxes are further explained in Note 11.

UNINSURED RISKS – Prior to November 1, 2006 we maintained a self-insured workers’ compensation insurance program for which our third party administrator over this program continues to make payments on behalf of the Company for claims incurred from November 1, 2004 through October 31, 2006. We are required to maintain a cash collateral account with this administrator as guarantee of our submission of full reimbursement of claims paid on our behalf. We record this collateral deposit as restricted cash and include it as other assets in our consolidated balance sheet which amounted to approximately $529,000 as of both December 31, 2014 and 2013.

With respect to the above-mentioned claims incurred from November 1, 2004 through October 31, 2006, the estimated future cash obligation associated with the unpaid portion of those claims that remain open but have not yet been resolved is recorded to accrued expenses in our consolidated balance sheet. This current liability is determined by the administrator’s estimate of loss development of open claims and was approximately $103,000 and $123,000 at December 31, 2014 and 2013, respectively.

On November 1, 2008 we obtained a fully funded and insured workers’ compensation policy, thereby eliminating any uninsured risks for employee injuries occurring on or after that date. This fully funded policy remained in effect through November 1, 2013 and continues to cover any claims incurred through this date.

On November 1, 2013 we entered into an arrangement with a third party administrator to process claims under a new high-deductible workers’ compensation insurance program. We have recorded liabilities as of December 31, 2014, and 2013 of $1.0 million and $280,000 for the estimated future cash obligations associated with the unpaid portion of the workers compensation claims incurred.

We and our affiliated physicians carry an annual medical malpractice insurance policy that protects us for claims that are filed during the policy year and that fall within policy limits. The policy has a deductible for which we have recorded liabilities and included it in our consolidated balance sheets at December 31, 2014 and December 31, 2013 of approximately $88,000 and $95,000, respectively.

In December 2008, in order to eliminate the exposure for claims not reported during the regular malpractice policy period, we purchased a medical malpractice tail policy, which provides coverage for any claims reported in the event that our medical malpractice policy expires. As of December 31, 2014, this policy remains in effect.

We have entered into an arrangement with Blue Shield to administer and process claims under a self-insured plan that provides health insurance coverage for our employees and dependents. We have recorded liabilities as of December 31, 2014 and 2013 of $2.0 million and $2.8 million, respectively, for the estimated future cash obligations associated with the unpaid portion of the medical and dental claims incurred by our participants. Additionally, we entered into an agreement with Blue Shield for a stop loss policy that provides coverage for any claims that exceed $250,000 up to a maximum of $1.0 million in order for us to limit our exposure for unusual or catastrophic claims.

LOSS AND OTHER UNFAVORABLE CONTRACTS – We assess the profitability of our contracts to provide management services to our contracted physician groups and identify those contracts where current operating results or forecasts indicate probable future losses. Anticipated future revenue is compared to anticipated costs. If the anticipated future cost exceeds the revenue, a loss contract accrual is recorded. In connection with the acquisition of Radiologix in November 2006, we acquired certain management service agreements for which forecasted costs exceeds forecasted revenue. As such, an $8.9 million loss contract accrual was established in purchase accounting, and is included in other non-current liabilities. The recorded loss contract accrual is being accreted into operations over the remaining term of the acquired management service agreements. As of December 31, 2014 and 2013, the remaining accrual balance is $6.1 million, and $6.4 million, respectively.

As part of our ongoing acquisition activities, we have certain operating lease commitments for facilities that are not in use. Accordingly, we have recorded a loss contract accrual related to the remaining payments under these lease commitments. As of December 31, 2014 and 2013, the remaining loss contract accrual for these leases is $218,000 and $328,000, respectively.

In addition and related to acquisition activity, we have certain operating lease commitments for facilities where the fair market rent differs from the lease contract rate. We have recorded an unfavorable contract liability representing the difference between the total value of the fair market rent and the contract rent over the current term of the lease applicable from the date of acquisition. As of December 31, 2014 and 2013, the unfavorable contract liability on these leases is $1.2 million and $2.1 million, respectively.

EQUITY BASED COMPENSATION – We have one long-term incentive plan which we refer to as the 2006 Plan. As of December 31, 2014, we have reserved for issuance under the 2006 Plan 11,000,000 shares of common stock. Certain options granted under the 2006 Plan to employees are intended to qualify as incentive stock options under existing tax regulations. In addition, we may issue non-qualified stock options and warrants under the 2006 Plan from time to time to non-employees, in connection with acquisitions and for other purposes and we may also issue restricted stock under the 2006 Plan. Stock options and warrants generally vest over two to five years and expire five to ten years from date of grant.

The compensation expense recognized for all equity-based awards is net of estimated forfeitures and is recognized over the awards’ service periods. Equity-based compensation is classified in operating expenses within the same line item as the majority of the cash compensation paid to employees.

FOREIGN CURRENCY TRANSLATION - The functional currency of our foreign subsidiaries is the local currency. In accordance with ASC 830, Foreign Currency Matters, assets and liabilities denominated in foreign currencies are translated using the exchange rate at the balance sheet dates. Revenues and expenses are translated using average exchange rates prevailing during the reporting period. Any translation adjustments resulting from this process are shown separately as a component of accumulated other comprehensive income. Foreign currency transaction gains and losses are included in the determination of net income.

COMPREHENSIVE INCOME - ASC 220, Comprehensive Income, establishes rules for reporting and displaying comprehensive income and its components. Unrealized gains or losses on the change in fair value of the Company’s cash flow hedging activities and foreign currency translation adjustments are included in comprehensive income. The components of comprehensive income for the three years in the period ended December 31, 2014 are included in the consolidated statements of comprehensive income.

FAIR VALUE MEASUREMENTS – Assets and liabilities subject to fair value measurements are required to be disclosed within a fair value hierarchy. The fair value hierarchy ranks the quality and reliability of inputs used to determine fair value. Accordingly, assets and liabilities carried at, or permitted to be carried at, fair value are classified within the fair value hierarchy in one of the following categories based on the lowest level input that is significant to a fair value measurement:

Level 1—Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets and liabilities.

Level 2—Fair value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in inactive markets. Related inputs can also include those used in valuation or other pricing models such as interest rates and yield curves that can be corroborated by observable market data.

Level 3—Fair value is determined by using inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgment.

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

	As of December 31, 2014
	Level 1			Level 2			Level 3			Total Fair Value		Total Face Value
First Lien Term Loans	$	–		$	394,753		$	–		$	394,753	$	399,750
Second Lien Term Loans		–			178,200			–			178,200		180,000

	As of December 31, 2013
	Level 1			Level 2			Level 3			Total		Total Face Value
Senior Secured Term Loan	$	–		$	380,508		$	–		$	380,508	$	349,125
Senior Notes		–			199,000			–			199,000		200,000

The carrying value of our line of credit at December 31, 2014 of $15.3 million approximated its fair value.

The estimated fair value of our long-term debt, which is discussed in Note 8, was determined using Level 2 inputs primarily related to comparable market prices.

We consider the carrying amounts of cash and cash equivalents, receivables, other current assets, current liabilities and other notes payables to approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization or payment. Additionally, we consider the carrying amount of our capital lease obligations to approximate their fair value because the weighted average interest rate used to formulate the carrying amounts approximates current market rates.

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,
	2014			2013			2012

Net income attributable to RadNet, Inc. common stockholders	$	1,376		$	2,120		$	59,834

BASIC NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period		41,070,077			39,140,480			37,751,170
Basic net income per share attributable to RadNet, Inc. common stockholders	$	0.03		$	0.05		$	1.58
DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period		41,070,077			39,140,480			37,751,170
Add nonvested restricted stock subject only to service vesting		994,610			316,905			533,014
Add additional shares issuable upon exercise of stock options and warrants		1,084,509			357,150			960,502
Weighted average number of common shares used in calculating diluted net income per share		43,149,196			39,814,535			39,244,686
Diluted net income per share attributable to RadNet, Inc. common stockholders	$	0.03		$	0.05		$	1.52

For the years ended December 31, 2014, 2013 and 2012 we excluded 245,000, 4,663,750 and 3,825,000, respectively, outstanding options, warrants and restricted stock in the calculation of diluted earnings per share because their effect would be antidilutive.

INVESTMENT IN JOINT VENTURES – We have ten unconsolidated joint ventures with ownership interests ranging from 31% 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. We evaluate our investment in joint ventures, including cost in excess of book value (equity method goodwill) for impairment whenever indicators of impairment exist. No indicators of impairment exist as of December 31, 2014. Investment in joint ventures increased approximately $3.2 million to $32.1 million at December 31, 2014 compared to $28.9 million at December 31, 2013. This increase is summarized as follows (in thousands):

Balance as of December 31, 2013	$	28,949
Purchase of a 49% interest in a new joint venture (see note below)		2,168
Equity contributions in existing joint ventures		1,394
Equity in earnings in these joint ventures		6,970
Distribution of earnings		(7,358	)
Balance as of December 31, 2014	$	32,123

On October 6, 2014, we acquired a 49% equity interest in Garden State Radiology, LLC, consisting of two multi-modality imaging centers located in New Jersey for cash consideration of $2.2 million.

We received management service fees from the centers underlying these joint ventures of approximately $9.3 million, $9.3 million and $8.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. We eliminate any unrealized portion of our management service fees with our equity in earnings of joint ventures.

The following table is a summary of key financial data for these joint ventures as of December 31, 2014 and 2013, respectively, and for the years ended December 31, 2014, 2013 and 2012, respectively, (in thousands):

	December 31,
Balance Sheet Data:	2014			2013
Current assets	$	23,636		$	16,203
Noncurrent assets		49,347			49,324
Current liabilities		(9,534	)		(6,158	)
Noncurrent liabilities		(6,386	)		(6,793	)
Total net assets	$	57,063		$	52,576
Book value of RadNet joint venture interests	$	26,791		$	23,705
Cost in excess of book value of acquired joint venture interests		4,970			4,922
Elimination of intercompany profit remaining on Radnet's consolidated balance sheet		362			322
Total value of Radnet joint venture interests	$	32,123		$	28,949

Total book value of other joint venture partner interests	$	30,272		$	28,871


		2014				2013				2012
Net revenue		$	101,189			$	93,134			$	85,036
Net income		$	14,854			$	13,633			$	14,031

3_RECENT_ACCOUNTING_STANDARDS

3. RECENT ACCOUNTING STANDARDS	12 Months Ended
3. RECENT ACCOUNTING STANDARDS	Dec. 31, 2014
Recent Accounting Standards
RECENT ACCOUNTING STANDARDS	In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers, (Topic 606). ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. It also requires more detailed disclosures to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The update is effective for fiscal years (and interim reporting periods within fiscal years) beginning after December 15, 2016. We are currently evaluating the impact of the GAAP update on our consolidated financial position, results of operations and cash flows.

	In July 2013, the FASB issued ASU No. 2013-11 (“ASU 2013-11”), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, (Topic 740). ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and not combined with deferred tax assets. ASU 2013-11 became effective for annual and interim periods beginning after December 15, 2013, with early adoption permitted. The adoption of this standard did not have a material effect on our consolidated financial statements.

4_FACILITY_ACQUISITIONS

4. FACILITY ACQUISITIONS	12 Months Ended
4. FACILITY ACQUISITIONS	Dec. 31, 2014
Facility Acquisitions
FACILITY ACQUISITIONS	On September 1, 2014 we completed our acquisition of Hematology Oncology Consultants located in Van Nuys, CA for cash consideration of $553,000. We have made a fair value determination of the acquired assets and approximately $15,000 of fixed assets, $164,000 of medical supplies inventory, $39,000 of other assets, $100,000 covenant not to compete intangible asset, and $235,000 of goodwill were recorded with respect to this transaction.

	On September 1, 2014 we completed our acquisition of Imaging Centers of Pasadena consisting of a single multi-modality imaging center located in Pasadena, CA for cash consideration of $1.8 million. The facility provides MRI, PET/CT, Ultrasound and X-ray services. We have made a fair value determination of the acquired assets and approximately $1.7 million of fixed assets and $105,000 of a covenant not to compete intangible asset were recorded with respect to this transaction.

	On July 3, 2014 we completed our acquisition of certain imaging center equipment from Healthcare Partners for which we agreed to pay $2.1 million. We paid cash of $300,000 and signed a promissory note for the remainder of $1.8 million.

	On July 1, 2014 we completed our acquisition of Moreno Valley Imaging consisting of a single multi-modality imaging center located in Moreno Valley, CA for cash consideration of $700,000. The facility provides MRI, CT, Ultrasound and X-ray services. We have made a fair value determination of the acquired assets and approximately $285,000 of fixed assets, $3,000 of other assets, $50,000 for a non compete covenant and $362,000 of goodwill were recorded with respect to this transaction.

	On July 1, 2014 we completed our acquisition of Liberty Pacific Imaging Long Beach consisting of a single multi-modality imaging center located in Signal Hill, CA for cash consideration of $1.9 million and assumed capital lease debt of $65,000. The facility provides MRI, CT, Ultrasound and X-ray services. We have made a fair value determination of the acquired assets and assumed liabilities and $577,000 of fixed assets, $100,000 for a covenant not to compete and $1.3 million of goodwill were recorded with respect to this transaction.

	On July 1, 2014 we completed our acquisition of Medical Imaging of Manhattan consisting of a single modality mammography center located in New York, New York for cash consideration of $2.4 million. We have made a fair value determination of the acquired assets and approximately $672,000 of fixed assets, $139,000 of other assets, a covenant not to compete of $150,000 and $1.4 million of goodwill were recorded with respect to this transaction.

	On April 1, 2014, we acquired the diagnostic imaging practice of Sidney Friedman, M.D. located in Westchester, CA for $1.4 million. We have made a fair value determination of the assets acquired and have allocated $600,000 to Imaging equipment, $470,000 to accounts receivable, a covenant not to compete of $100,000 and $231,000 to goodwill.

	On January 2, 2014, we acquired the diagnostic imaging practice of Leslie A. Saint-Louis, M.D. located in New York, New York for $360,000. Upon acquisition, we relocated the practice to a nearby existing center in New York, New York. We have made a fair value determination of the assets acquired and have allocated $310,000 to goodwill and $50,000 to other intangible assets related to a covenant not to compete contract with Dr. Saint-Louis.

	On November 1, 2013 we completed our acquisition of South Valley Radiology Imaging LLC, consisting of one multi-modality imaging center located in Encino, CA for cash consideration of $1.3 million. We have made a fair value determination of the assets acquired and approximately $1.0 million of fixed assets and $305,000 of goodwill were recorded with respect to this transaction.

	On August 1, 2013, we completed our acquisition of Manhattan Diagnostic Radiology consisting of two multi-modality imaging centers located in New York, New York, for cash consideration of $2.3 million. The facilities provide MRI, CT, mammography, ultrasound and X-ray services. We have made a fair value determination of the acquired assets and assumed liabilities and approximately $2.0 million of fixed assets, $150,000 of other intangible assets and $161,000 of other assets were recorded with respect to this transaction.

	On May 1, 2013, we acquired a 40% equity interest in Orange County Radiation Oncology, LLC, a Radiation Oncology Center located in Orange County, California for cash consideration of $1.0 million. As of May 1, 2013 we have accounted for this investment under the equity method.

	On April 1, 2013, we sold one of our wholly-owned multi-modality imaging centers located in Northfield, New Jersey for $3.9 million in cash. The net book value associated with the imaging center was $1.8 million, which included $1.0 million of goodwill, on the date of sale and accordingly a gain of $2.1 million was recorded with respect to this transaction.

	On February 28, 2013, we completed our acquisition of a multi-modality imaging center located in Brooklyn, New York by exercising a $1.00 purchase option to acquire an initial 50% interest (we acquired this option through our December 31, 2012 acquisition of Lenox Hill Radiology) and then by purchasing the remaining 50% interest from the existing partner for approximately $2.4 million in cash.

	On January 30, 2013, we purchased for $430,000 an additional 20.9% interest in a joint venture multi-modality imaging center located in Manhattan, New York (Park West) of which we initially held a 31.5% interest from our December 31, 2012 acquisition of Lenox Hill Radiology. This additional 20.9% interest gave us a 52.4% controlling interest in the center and so accordingly, we now consolidate its financial statements. Included in our initial consolidating entry was $979,000 of noncontrolling interests representing the fair value on January 30, 2013 of the remaining 47.6% not owned by us.

	On January 1, 2013, we completed our acquisition of a breast surgery practice located in Mission Viejo, California for $350,000. We have made a fair value determination of the acquired assets and assumed liabilities and approximately $135,000 of working capital, $30,000 of fixed assets and $185,000 of goodwill was recorded with respect to this transaction.

	On December 31, 2012, we completed our acquisition of Lenox Hill Radiology, consisting of three multi-modality imaging centers as well as three additional x-Ray facilities all located in Manhattan, New York. We also acquired in this transaction a 31.5% interest in a joint venture multi-modality imaging center in Manhattan, New York and an option to purchase a 50% interest in a multi-modality imaging center located in Brooklyn, New York for $1.00. The purchase price consisted of approximately $28.5 million in cash. We have made a preliminary fair value determination of the acquired assets and assumed liabilities and approximately $4.5 million of working capital, $8.7 million of fixed assets, $648,000 of joint venture interests, $2.5 million in a $1.00 joint venture purchase option, $1.4 million of intangible assets $12.7 million of goodwill and the assumption of approximately $650,000 of other liabilities and $1.3 million of capital lease debt was recorded with respect to this transaction.

	On December 3, 2012, we completed our acquisition of a multi-modality imaging center, Clinical Radiologists Medical Imaging located in Silver Spring, Maryland, for $2.8 million in cash. We have made a fair value determination of the acquired assets and assumed liabilities and approximately $65,000 of working capital, $1.8 million of fixed assets, $71,000 of other assets,$1.8 million of goodwill and the assumption of approximately $938,000 of capital lease debt was recorded with respect to this transaction.

	On November 5, 2012, we completed our acquisition of a multi-modality imaging center, Vanowen Radiology located in Van Nuys, California, for cash consideration of $550,000. We have made a fair value determination of the acquired assets and approximately $164,000 of fixed assets and $386,000 of goodwill was recorded with respect to this transaction.

	On November 9, 2012, we completed our acquisition of a multi-modality imaging center, Pueblo Radiology located in Ventura, California, for cash consideration of $750,000. This center is located in an area of Ventura where we operate an existing center and compete directly with Pueblo Radiology. We have made a fair value determination of the acquired assets and approximately $1.6 million of fixed assets and no goodwill was recorded with respect to this transaction. In accordance with accounting standards, any excess of fair value of acquired net assets over the acquisition consideration results in a gain on bargain purchase. Prior to recording a gain, the acquiring entity must reassess whether all acquired assets and assumed liabilities have been identified and recognized and perform re-measurements to verify that the consideration paid, assets acquired, and liabilities assumed have been properly valued. We undertook such a reassessment, and as a result, have recorded a gain on bargain purchase of approximately $810,000, which is included in Other Income within our consolidated statement of income for the year ended December 31, 2012.

	On October 1, 2012 we acquired a 100% controlling interest in one of our non-consolidated joint venture imaging centers in which we previously held a 50% non-consolidated equity investment. As a result of this transaction, we began consolidating this imaging center, recording all of its assets and liabilities at their fair value at October 1, 2012. We have made a fair value determination of the acquired assets and assumed liabilities and $2.1 million of fixed assets and $1.8 million of goodwill was recorded with respect to this transaction. We also assumed approximately $1.9 million of capital lease debt and $200,000 of other liabilities.

	On August 6, 2012 we formed a limited liability company with Barnabas Health, a New Jersey owner and operator of a large New Jersey hospital system, for the purpose of creating a New Jersey imaging network under our management. Our first endeavor was to establish a multi-modality imaging center located in Cedar Knolls, New Jersey, of which we own 49%. Our initial investment of approximately $1.8 million was recorded to investment in non-consolidated joint ventures.

	On July 23, 2012, we completed our acquisition of a multi-modality imaging center, Orthopedic Imaging Center, LLC. located in Redlands, California, for cash consideration of $700,000. We have made a fair value determination of the acquired assets and approximately $373,000 of fixed assets, $25,000 of other assets and $302,000 of goodwill was recorded with respect to this transaction.

	On July 1, 2012, we completed the sale of a 41% portion of our ownership interest of one of our consolidated joint ventures to our existing partner in that joint venture for $1.8 million. After the sale, we retained a 49% ownership interest in this joint venture. As a result of this transaction we de-consolidated this joint venture and recorded the fair value of our remaining interest as an investment in non-consolidated joint venture accounted for under the equity method. We recorded a gain on de-consolidation of a joint venture of approximately $2.8 million with respect to this transaction. Approximately $1.4 million of this gain is related to the re-measurement to current fair value of our remaining 49% interest, using a market based valuation approach. The main input used in our valuation model was the $1.8 million sale price of a 41% interest.

	On May 1, 2012, we completed our acquisition of Advanced Medical Imaging of Stuart, L.P., which consists of two multi-modality imaging centers located in Stuart, Florida, for cash consideration of $1.0 million. We have made a fair value determination of the acquired assets and approximately $39,000 of fixed assets, $88,000 of other current assets and $923,000 of goodwill was recorded with respect to this transaction.

	On April 1, 2012, we completed our acquisition of West Coast Radiology, which consists of five multi-modality imaging centers in Orange County, California, for cash consideration of $8.1 million. The centers are located in Anaheim, Santa Ana/Tustin, Irvine and Mission Viejo/Laguna Niguel and operate a combination of MRI, CT, ultrasound, mammography, X-ray and other related modalities. We have made a fair value determination of the acquired assets and assumed liabilities and approximately $715,000 of working capital, $3.1 million of fixed assets, $5.4 million of goodwill, $200,000 of intangible assets and the assumption of approximately $1.3 million of capital lease debt was recorded with respect to this transaction.

	On February 29, 2012, we completed the acquisition of a multi-modality imaging center from TODIC, L.P. located in Camarillo, California for cash consideration of $350,000. The facility provides MRI, CT, mammography, ultrasound and X-ray services. We have made a fair value determination of the acquired assets and assumed liabilities and approximately $425,000 of fixed assets and $86,000 of goodwill was recorded with respect to this transaction as well as the assumption of approximately $40,000 of accrued liabilities and approximately $121,000 of capital lease debt.

	On February 29, 2012, we completed the acquisition of a multi-modality imaging center from Progressive MRI, LLC located in Frederick, Maryland for cash consideration of $230,000. The facility provides MRI, CT, mammography, ultrasound and X-ray services. We have made a fair value determination of the acquired assets and approximately $230,000 of fixed assets was recorded with respect to this transaction.

5_GOODWILL_AND_OTHER_INTANGIBL

5. GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
5. GOODWILL AND OTHER INTANGIBLE ASSETS	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	Goodwill at December 31, 2014 totaled $200.3 million. Goodwill is recorded as a result of business combinations. Activity in goodwill for the years ended December 31, 2012, 2013 and 2014, is provided below (in thousands):

	Balance as of January 1, 2012		159,507
	Goodwill acquired through the acquisition of Camarillo Imaging		86
	Goodwill acquired through the acquisition of West Coast Radiology		5,395
	Goodwill acquired through the acquisition of Advanced Medical Imaging of Stuart		923
	Goodwill acquired through the acquisition of Orthopedic Imaging		302
	Adjustments to our preliminary allocation of the purchase price of Raven Holdings U.S., Inc.		7,895
	Goodwill acquired through the acquisition of our controlling interest in Upper Chesapeake Imaging		1,849
	Goodwill acquired through the acquisition of Vanowen Radiology		386
	Goodwill acquired through the acquisition of our controlling interest in Clinical Radiology		1,838
	Goodwill acquired through the acquisition of Lenox Hill Radiology		15,690
	Balance as of December 31, 2012		193,871
	Goodwill acquired through the acquisition of breast surgery practice in Mission Viejo, CA		185
	Adjustments to our preliminary allocation of the purchase price of Lenox Hill Radiology		(3,219	)
	Goodwill acquired through the acquisition of Park West		2,047
	Goodwill acquired through the acquisition of imaging center in Brooklyn, NY		4,206
	Goodwill associated with the sale of a wholly owned imaging center in Northfield, NJ		(1,000	)
	Goodwill acquired through the acquisition of South Valley Med Imaging		305
	Balance as of December 31, 2013		196,395
	Goodwill acquired through the acquisition of Corinthian		310
	Goodwill acquired through the acquisition of Westchester Imaging		231
	Goodwill acquired through the acquisition of Garden State Radiology		50
	Goodwill acquired through the acquisition of Medical Imaging of Manhattan		1,433
	Goodwill acquired through the acquisition of Liberty Pacific		1,288
	Goodwill acquired through the acquisition of Moreno Valley		362
	Goodwill acquired through the acquisition of Hematology-Oncology		235
	Balance as of December 31, 2014	$	200,304

	The amount of goodwill from these acquisitions that is deductible for tax purposes as of December 31, 2014 is $120.0 million.

	Other intangible assets are primarily related to the value of management service agreements obtained through our acquisition of Radiologix, Inc. in 2006 and are recorded at a cost of $57.5 million less accumulated amortization of $18.7 million at December 31, 2014. Also included in other intangible assets is the value of covenant not to compete contracts associated with our facility acquisitions totaling $5.6 million less accumulated amortization of $4.6 million, as well as the value of trade names associated with acquired imaging facilities totaling $9.0 million less accumulated amortization of $1.5 million. Also in connection with our purchase of eRAD and included in other intangible assets is the value of eRAD’s developed technology and its customer relationships.

	Total amortization expense for the years ended December 31, 2014, 2013 and 2012 was $3.1 million, $3.1 million and $3.5 million, respectively. Intangible assets are amortized using the straight-line method. Management service agreements are amortized over 25 years using the straight line method. Developed technology and customer relationships are amortized over 5 years using the straight line method.

	The following table shows annual amortization expense, by asset classes that will be recorded over the next five years (in thousands):

		2015			2016		2017		2018		2019		Thereafter		Total		Weighted average amortization period remaining in years
	Management Service Contracts	$	2,315		$	2,315	$	2,315	$	2,315	$	2,315	$	27,205	$	38,781		16.8
	Covenant not to compete contracts		320			254		191		148		64		–		977		3.7
	Customer relationships		184			1		–		–		–		–		185		0.9
	Developed technology and in-process R&D		149			24		–		–		–		–		173		1.3
	Trade Names*		–			–		–		–		–		7,508		7,508		–
	Total Annual Amortization	$	2,968		$	2,594	$	2,506	$	2,463	$	2,379	$	34,713	$	47,624

	* These trade name intangibles have an indefinite life

6_PROPERTY_AND_EQUIPMENT

6. PROPERTY AND EQUIPMENT	12 Months Ended
6. PROPERTY AND EQUIPMENT	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	Property and equipment and accumulated depreciation and amortization are as follows (in thousands):

		December 31,
		2014			2013
	Land	$	250		$	250
	Medical equipment		334,893			304,592
	Computer and office equipment, furniture and fixtures		90,031			88,946
	Software development costs		6,391			5,108
	Leasehold improvements		206,224			186,561
	Equipment under capital lease		22,753			34,407
			660,542			619,864
	Accumulated depreciation and amortization		(437,415	)		(401,317	)
		$	223,127		$	218,547

	Depreciation and amortization expense on property and equipment, including amortization of equipment under capital leases, for the years ended December 31, 2014, 2013 and 2012 was $56.2 million, $55.8 million, and $54.2 million, respectively.

7_ACCOUNTS_PAYABLE_AND_ACCRUED

7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES	12 Months Ended
7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES	Dec. 31, 2014
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES		December 31,
		2014		2013

	Accounts payable	$	46,855	$	36,962
	Accrued expenses		35,776		43,175
	Accrued payroll and vacation		4,970		17,902
	Accrued professional fees		10,215		8,277
	Total	$	97,816	$	106,316

8_NOTES_PAYABLE_LINE_OF_CREDIT

8. NOTES PAYABLE, LINE OF CREDIT AND CAPITAL LEASES	12 Months Ended
8. NOTES PAYABLE, LINE OF CREDIT AND CAPITAL LEASES	Dec. 31, 2014
Debt Disclosure [Abstract]
NOTES PAYABLE, LINE OF CREDIT AND CAPITAL LEASES	Notes payable, revolving credit facility and capital lease obligations:

	Our notes payable, line of credit and capital lease obligations consist of the following (in thousands):

			December 31,
			2014				2013
	Revolving lines of credit		$	15,300			$	–

	Senior Secured Term Loan			–				385,325

	First Lien Term Loans			399,750				–

	Second Lien Term Loans			180,000				–

	Senior Unsecured Notes			–				200,000

	Discounts on term loans and notes			(11,966	)			(12,109	)

	Promissory notes payable to the former shareholders of businesses acquired at interest rates ranging from 4.0% to 6.0%, due through 2014			–				492

	Promissory notes payable to Healthcare Partners for imaging equipment acquired through acquisition at 5.25%			1,590				–

	Equipment notes payable at interest rates ranging from 4% to 11.1%, due through 2017, collateralized by medical equipment			1,153				2,064

	Obligations under capital leases at interest rates ranging from 3.8% to 9.4%, due through 2017, collateralized by medical and office equipment			11,780				5,854
	Total debt obligations			597,607				581,626
	Less: current portion			(25,105	)			(6,178	)
	Long term portion debt obligations		$	572,502			$	575,448

	The following is a listing of annual principal maturities of notes payable exclusive of all related discounts, capital leases and repayments on our revolving credit facilities for years ending December 31 (in thousands):

	2015	$	22,435
	2016		21,840
	2017		20,766
	2018		337,452
	2019		–
	Thereafter		180,000
	Total notes payable obligations	$	582,493


	We lease equipment under capital lease arrangements. Future minimum lease payments under capital leases for years ending December 31 (in thousands) is as follows:

	2015	$	6,066
	2016		5,740
	2017		573
	2018		–
	2019		–
	Thereafter		–
	Total minimum payments		12,379
	Amount representing interest		(599	)
	Present value of net minimum lease payments		11,780
	Less current portion		(5,637	)
	Long-term portion lease obligations	$	6,143

	Term Loans and Financing Activity Information:

	Included in our consolidated balance sheet at December 31, 2014 are $567.8 million of senior secured term loan debt (net of unamortized discounts of $12.0 million), broken down by loan agreement as follows (in thousands):

		As of December 31, 2014
		Face Value			Discount			Total Carrying Value
	First Lien Term Loans	$	399,750		$	(9,301	)	$	390,449
	Second Lien Term Loans	$	180,000		$	(2,665	)	$	177,335
	Total	$	579,750		$	(11,966	)	$	567,784

Our revolving credit facility has a $15.3 million aggregate principal amount outstanding as of December 31, 2014.

As of December 31, 2014, we were in compliance with all financial covenants under our Refinance Agreement, as amended by the 2014 Amendment, and the Second Lien Credit and Guaranty Agreement.

Financing activity in 2014:

The following describes our 2014 financing activities:

2014 Amendment to the Refinance Agreement and Second Lien Credit and Guaranty Agreement:

On March 25, 2014, Radnet Management simultaneously entered into two agreements which resulted in the creation of a direct financial obligation as follows:

2014 Amendment of the Refinance Agreement. Radnet Management amended that certain Credit and Guaranty Agreement dated October 10, 2012, by that certain first amendment dated April 3, 2013 (the “2013 Amendment”) (collectively, the “Refinance Agreement”), and subsequently by entering into a second amendment to the Refinance Agreement (the “2014 Amendment”) to provide for, among other things, the borrowing by Radnet Management of $30.0 million of additional first lien term loans (the “2014 First Lien Term Loans”).

Second Lien Credit and Guaranty Agreement. Radnet Management entered into a Second Lien Credit and Guaranty Agreement dated March 25, 2014 (the “Second Lien Credit Agreement”) to provide for, among other things, the borrowing by Radnet Management of $180.0 million of second lien term loans (the “Second Lien Term Loans”). The proceeds from the Second Lien Term Loans and the 2014 First Lien Term Loans were used to redeem the senior notes, as more fully described below under the heading “Senior Notes”, to pay the expenses related to the transaction and for general corporate purposes.

Revolving Credit Facility. The $101.25 million revolving credit line established in the Refinance Agreement was unaltered by the agreements above and remains in place. The termination date for the $101.25 million revolving credit facility is the earliest to occur of (i) October 10, 2017, (ii) the date the revolving credit facility is permanently reduced to zero pursuant to section 2.13(b) of the Refinance Agreement, which address voluntary commitment reductions and (iii) the date of the termination of the revolving credit facility due to specific events of default pursuant to section 8.01 of the Refinance Agreement. The revolver bears interest based on types of borrowings as follows: (i) unpaid principal at 6.5% per annum, (ii) letter of credit and fronting fees at 4.5% per annum, and (iii) commitment fee of 0.5% per annum on the unused revolver balance.

The 2014 Amendment provides for the following:

Interest. The interest rates payable on the 2014 First Lien Term Loans are the same as the rates currently payable under the Refinance Agreement, as amended by the 2013 Amendment, which are (a) the Adjusted Eurodollar Rate (as defined in the Refinance Agreement) plus 3.25% or (b) the Base Rate (as defined in the Refinance Agreement) plus 2.25%. With respect to all of the term loans under the Refinance Agreement, as amended by the 2014 Amendment, the Adjusted Eurodollar Rate has a minimum floor of 1.0%. The Adjusted Eurodollar Rate at December 31, 2014 was 0.36%.

Payments. The scheduled amortization of the term loans under the Refinance Agreement, as amended by the 2014 Amendment, has been increased, starting in June 2014 from quarterly payments of $975,000 to quarterly payments of approximately $5.2 million, with the remaining balance to be paid at maturity. Scheduled amortization increased by $16.8 million from pre-amendment terms, representing a rise from 1% per annum to 5% per annum of the initial amount borrowed.

Guarantees and Collateral. The obligations under the Refinance Agreement, as amended by the 2014 Amendment, are guaranteed by RadNet, Inc., all of our current and future domestic subsidiaries and certain of our affiliates (other than certain excluded foreign subsidiaries). The obligations under the Refinance Agreement, as amended by the 2014 Amendment, and the guarantees are secured by a perfected first priority security interest (subject to certain permitted exceptions) in substantially all of Radnet Management’s and the guarantors’ tangible and intangible assets, including, but not limited to, pledges of equity interests of Radnet Management and all of our current and future domestic subsidiaries.

Restrictive Covenants. In addition to certain covenants, the Refinance Agreement, as amended by the 2014 Amendment, places limits on our ability to declare dividends or redeem or repurchase capital stock, prepay, redeem or purchase debt, incur liens and engage in sale-leaseback transactions, make loans and investments, incur additional indebtedness, amend or otherwise alter debt and other material agreements, engage in mergers, acquisitions and asset sales, enter into transactions with affiliates and alter the business we and our subsidiaries currently conduct.

Financial Covenants. The Refinance Agreement, as amended by the 2014 Amendment contains financial covenants including a maximum total leverage ratio and a limit on annual capital expenditures.

Events of Default. In addition to certain customary events of default, events of default under the Refinance Agreement, as amended by the 2014 Amendment, include failure to pay principal of any loans as and on the date when due, failure to pay any interest on any loan or any fee or other amount payable under the Refinance Agreement, as amended by the 2014 Amendment, within five days after the due date, failure of any loan party to comply with any covenant or agreement in the loan documents (subject to applicable grace periods and/or notice requirement), a representation or warranty contained in the loan documents is false in a material respect, events of bankruptcy and a change of control. The occurrence of an event of default could permit the lenders under the Refinance Agreement, as amended by the 2014 Amendment, to declare all amounts borrowed, together with accrued interest and fees, to be immediately due and payable and to exercise other default remedies.

The Second Lien Credit Agreement provides for the following:

Interest. The interest rates payable on the Second Lien Term Loans are (a) the Adjusted Eurodollar Rate (as defined in the Second Lien Credit Agreement) plus 7.0% or (b) the Base Rate (as defined in the Second Lien Credit Agreement) plus 6.0%. The Adjusted Eurodollar Rate has a minimum floor of 1.0% on the Second Lien Term Loans. The Eurodollar Rate at December 31, 2014 was 0.36%. The rate paid on the Second Lien Credit Agreement at December 31, 2014 is 8%.

Payments. There is no scheduled amortization of the principal of the Second Lien Term Loans. Unless otherwise prepaid as a result of the occurrence of certain mandatory prepayment events, all principal will be due and payable on the termination date described below.

Termination. The maturity date for the Second Lien Term Loans is the earlier to occur of (i) March 25, 2021, and (ii) the date on which the Second Lien Term Loans shall otherwise become due and payable in full under the Second Lien Credit Agreement, whether by voluntary prepayment per section 2.13 (a) or events of default per section 8.01 as described below.

Restrictive Covenants. In addition to certain covenants, the Second Lien Credit Agreement places limits on our ability declare dividends or redeem or repurchase capital stock, prepay, redeem or purchase debt, incur liens and engage in sale-leaseback transaction, make loans and investments, incur additional indebtedness, amend or otherwise alter debt and other material agreements, engage in mergers, acquisitions and asset sales, enter into transactions with affiliates and alter the business we and our subsidiaries currently conduct.

Events of Default. In addition to certain events of default, events of default under the Second Lien Credit Agreement include failure to pay principal of any loans as and on the date when due, failure to pay any interest on any loan or any fee or other amount payable under the Second Lien Term Loans within five days after the due date, failure of any loan party to comply with any covenant or agreements in the loan documents (subject to applicable grace periods and/or notice requirements), a representation or warranty contained in the loan documents is false in a material respect, events of bankruptcy and a change of control. The occurrence of an event of default could permit the lenders under the Second Lien Credit Agreement to declare all amounts borrowed, together with accrued interest and fees, to be immediately due and payable and to exercise other default remedies.

Senior Notes

On April 6, 2010, we issued and sold $200 million of 10 3/8% senior unsecured notes due 2018 at a price of 98.680% (the “senior notes”). All payments of the senior notes, including principal and interest, were guaranteed jointly and severally on a senior unsecured basis by RadNet, Inc., and all of Radnet Management’s current and future domestic wholly owned restricted subsidiaries. The senior notes were issued under an indenture dated April 6, 2010 (the “Indenture”), by and among Radnet Management, Inc., as issuer, RadNet, Inc., as parent guarantor, the subsidiary guarantors thereof and U.S. Bank National Association, as trustee.” We paid interest on the senior notes on April 1 and October 1 of each year, commencing October 1, 2010, and they were scheduled to expire on April 1, 2018.

We completed the retirement of our $200 million in senior notes on April 24, 2014 and following such retirement the Company completed the satisfaction and discharge of the Indenture. The transactions leading to the retirement of the Senior Notes are described below:

Tender Offer and Exercise of Optional Redemption on March 7, 2014. On March 7, 2014, we commenced a tender offer to purchase for cash any and all outstanding senior notes. In connection with the tender offer, we also commenced a consent solicitation to amend the Indenture to eliminate or modify certain restrictive covenants. On March 25, 2014, we made a payment in cash for all senior notes tendered prior to 5:00 P.M., New York City time, on March 20, 2014 (the “Consent Payment Deadline”). As of the Consent Payment Deadline, we received tenders and consents in respect of $193,464,000 aggregate principal amount of the senior notes, representing 96.73% of the outstanding senior notes, all of which were accepted for purchase. The total consideration for each $1,000 principal amount of senior notes validly tendered and not withdrawn at or prior to the Consent Payment Deadline and accepted for purchase was $1,056.88, which amount included a consent payment (the “Consent Payment”) of $30.00 per $1,000 principal amount of senior notes. In addition, all senior notes accepted for payment received accrued and unpaid interest in respect of such notes from the last interest payment date prior to the applicable settlement date to, but not including, the applicable settlement date. The tender offer expired on April 3, 2014 and between the Consent Payment Deadline and the expiration of the tender offer, no additional senior notes were tendered. With a net carrying amount including discount and unamortized issue costs of $189.2 million, a loss on early extinguishment of debt of $15.5 million was recorded in the first quarter of 2014.

Tender Offer and Exercise on Optional Redemption of March 25, 2014. On March 25, 2014, we called for redemption all of our remaining outstanding senior notes not purchased prior to the expiration of the tender offer described above, with a redemption date of April 24, 2014 (the “Redemption Date”). Upon redemption on April 24, 2014, the holders of the senior notes being redeemed received a redemption price equal to 105.188% of the outstanding principal amount of the senior notes being redeemed (or $1,051.88 per $1,000 in principal amount of the senior notes) in accordance with the terms of the Indenture, or approximately $6.9 million in total, including approximately $43,000 of accrued and unpaid interest up to, but excluding the Redemption Date. As of that date, we completed the satisfaction and discharge of the Indenture in accordance with its terms and no senior notes remained outstanding. With a net carrying amount including discount and unamortized issue costs of $6.4 million, a loss on early extinguishment of debt of $471,000 was recorded in the second quarter of 2014.

Prior financing activity to 2014:

The following describes our key financing activities prior to 2014:

2010 Credit Agreements

On April 6, 2010, we entered into a Credit and Guaranty Agreement with a syndicate of lenders (the “Credit Agreement”), whereby we obtained $385.0 million in senior secured first-lien bank financing, consisting of (i) a $285.0 million, six-year term loan facility and (ii) a $100.0 million, five-year revolving credit facility, including a swing line subfacility and a letter of credit subfacility (collectively, the “Credit Facilities”).

2012 Refinancing

On October 10, 2012 we completed the refinancing of the Credit Facilities by entering into a new Credit and Guaranty Agreement with a syndicate of banks and other financial institutions (the “Refinance Agreement”). The total amount of refinancing was $451.25 million, consisting of (i) a $350 million senior secured term loan and (ii) a $101.25 million senior secured revolving credit facility. The obligations under the Refinance Agreement were guaranteed by RadNet, Inc. and all of Radnet Management’s current and future domestic subsidiaries and certain of our affiliates. The obligations under the Refinance Agreement, including the guarantees, were secured by a perfected first-priority security interest in all of our tangible and intangible assets, including, but not limited to, pledges of equity interests of Radnet Management and all of our current and future domestic subsidiaries.

We used the net proceeds to repay in full our existing six year term loan facility for $277.9 million in principal amount outstanding, which would have matured on April 6, 2016, and our revolving credit facility for $59.8 million in principal amount outstanding, which would have matured on April 6, 2015.

2013 Amendment to the Refinance Agreement

On April 3, 2013, we entered into a first amendment to the Refinance Agreement. Pursuant to this amendment, we re-priced the balance of our term loan of $348.3 million and borrowed an additional $40.0 million for a new senior secured term loan total of $388.3 million. The proceeds from the amendment were used to: (i) repay in full all existing Term Loans under the Refinance Agreement; (ii) repay outstanding revolving loans; (iii) repay premium, fees and expenses incurred; and (iv) general corporate purposes.

9_COMMITMENTS_AND_CONTINGENCIE

9. COMMITMENTS AND CONTINGENCIES	12 Months Ended
9. COMMITMENTS AND CONTINGENCIES	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES
	Leases – We lease various operating facilities and certain medical equipment under operating leases with renewal options expiring through 2046. Certain leases contain renewal options from two to ten years and escalation based either on the consumer price index or fixed rent escalators. Leases with fixed rent escalators are recorded on a straight-line basis. We record deferred rent for tenant leasehold improvement allowances received from certain lessors and amortize the deferred rent expense over the term of the lease agreement. Minimum annual payments under operating leases for future years ending December 31 are as follows (in thousands):

		Facilities		Equipment		Total
	2015	$	49,817	$	10,163	$	59,980
	2016		43,928		10,041		53,969
	2017		37,677		8,546		46,223
	2018		30,778		4,572		35,350
	2019		25,240		1,087		26,327
	Thereafter		81,968		8		81,976
		$	269,408	$	34,417	$	303,825

	Total rent expense, including equipment rentals, for the years ended December 31, 2014, 2013 and 2012 was $64.5 million, $65.0 million and $60.6 million, respectively.

	Litigation – We are engaged from time to time in the defense of lawsuits arising out of the ordinary course and conduct of our business. We believe that the outcome of our current litigation will not have a material adverse impact on our business, financial condition and results of operations. However, we could be subsequently named as a defendant in other lawsuits that could adversely affect us.

10_DERIVATIVE_INSTRUMENTS

10. DERIVATIVE INSTRUMENTS	12 Months Ended
	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	We are exposed to certain risks relating to our ongoing business operations. The primary risk that we manage with derivative instruments is interest rate risk. We have in the past entered into interest rate swap agreements to manage interest rate risk exposure. The interest rate swap agreements effectively modified our exposure to interest rate risk by converting our floating-rate debt to a fixed rate basis during the period of the interest rate swap, thus reducing the impact of interest-rate changes on future interest expense.

	At inception, we designated our interest rate swaps as cash flow hedges of floating-rate borrowings. In accordance with ASC Topic 815, derivatives that have been designated and qualify as cash flow hedging instruments are reported at fair value. The gain or loss on the effective portion of the hedge (i.e., change in fair value) is initially reported as a component of accumulated other comprehensive income in the consolidated statement of equity deficit. The remaining gain or loss, if any, is recognized currently in earnings. Unrealized gains or losses on the change in fair value of our interest rate swaps that do not qualify as hedges are recognized in earnings.

	As a result of our senior secured credit facilities that were refinanced on October 10, 2012 and the issuance of the senior notes completed on April 6, 2010, our interest rate swaps do not match the terms of our current bank debt and so accordingly, they were no longer designated as cash flow hedges after the date of refinancing. Accordingly, all changes in their fair value after April 6, 2010, and through November 15, 2012, their maturity date, were recognized in earnings as other expense.

	The related Accumulated Other Comprehensive Loss (“AOCL”) of $3.1 million associated with the negative fair values of these interest rate swaps on April 6, 2010 was amortized on a straight-line basis to interest expense through November 15, 2012, the maturity date of these cash flow hedges.

	A tabular presentation of the effect of derivative instruments on our statement of operations is as follows (amounts in thousands):

	For the Year Ended December 31, 2012
	Ineffective	Amount of	Amount of Gain	Location of	Amount of Gain	Location of Gain
	Interest Rate	Gain (Loss)	(Loss)	Gain (Loss)	(Loss)	(Loss)
	Swap	Recognized	Recognized in	Recognized in	Reclassified from	Reclassified from
		in OCI on	Income on	Income on	Accumulated	Accumulated
		Derivative	Derivative	Derivative	OCI into Income	OCI into Income
		(Effective	(Ineffective	(Ineffective	(Effective	(Effective
		Portion)	Portion)	Portion)	Portion)	Portion)
	Interest rate contracts	None	$5,064	Other income/ (expense)	* ($918)	Interest
						income/(expense)

	* Amortization of OCI associated with the cash flow hedges built up through April 6, 2010 (see discussion above).

11_INCOME_TAXES

11. INCOME TAXES	12 Months Ended
11. INCOME TAXES	Dec. 31, 2014
Income Tax Disclosure [Abstract]
INCOME TAXES	For the years ended December 31, 2014, 2013 and 2012, we recognized income tax expense (benefit) comprised of the following (in thousands):

			December 31,
			2014				2013				2012

	State current tax		$	1,283			$	643			$	1,160
	Other current tax			29				(39	)			32
	Federal deferred tax			869				3,794				(46,901	)
	State deferred tax			(214	)			(888	)			(9,518	)

	Income tax expense (benefit)		$	1,967			$	3,510			$	(55,227	)

	A reconciliation of the statutory U.S. federal rate and effective rates is as follows (in thousands):

			Years Ended December 31,
			2014				2013				2012

	Federal tax			34.00%				34.00%				34.00%
	State franchise tax, net of federal benefit			-3.64%				-14.20%				17.49%
	Other Non deductible expenses			0.00%				0.07%				-2.42%
	Meals and entertainment			4.85%				1.98%				2.22%
	Noncontrolling Interest in Partnerships			-2.88%				-1.48%				1.79%
	Equity compensation			-8.72%				35.39%				10.69%
	Changes in valuation allowance			24.52%				-17.88%				-1284.18%
	Return-to-provision			-9.57%				-1.96%				-47.80%
	Deferred true-ups and other			16.34%				0.00%				0.00%
	Uncertain tax positions			-3.67%				-2.92%				6.45%
	Expiring net operating losses			2.61%				26.64%				0.00%
	Income tax expense (benefit)			53.85%				59.64%				-1261.76%

	Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial and income tax reporting purposes and operating loss carryforwards.

	Our deferred tax assets and liabilities comprise the following (in thousands):

			December 31,
			2014				2013
	Deferred tax assets:
	Net operating losses		$	87,709			$	82,630
	Accrued expenses			3,594				3,610
	Straight-Line Rent Adjustment			8,897				8,053
	Unfavorable contract liability			2,811				3,365
	Equity compensation			253				645
	Allowance for doubtful accounts			2,124				2,494
	Other			1,891				1,400
	Valuation Allowance			(6,378	)			(6,593	)
	Total Deferred Tax Assets		$	100,901			$	95,604

	Deferred tax liabilities:
	Property Plant & Equipment			(7,755	)			(7,948	)
	Goodwill			(17,833	)			(15,101	)
	Intangibles			(12,105	)			(12,162	)
	NAEM Reserve			(6,441	)			(5,555	)
	Other			(4,189	)			(1,603	)

	Total Deferred Tax Liabilities		$	(48,323	)		$	(42,369	)

	Net Deferred Tax Asset		$	52,578			$	53,235

	As of December 31, 2014, the Company had federal net operating loss carryforwards of approximately $245.3 million, which expire at various intervals from the years 2017 to 2034. The Company also had state net operating loss carryforwards of approximately $187.0 million, which expire at various intervals from the years 2015 through 2034. As of December 31, 2014, $23.5 million of our federal net operating loss carryforwards acquired in connection with the 2011 acquisition of Raven Holdings U.S., Inc. are subject to limitations related to their utilization under Section 382 of the Internal Revenue Code. Future ownership changes as determined under Section 382 of the Internal Revenue Code could further limit the utilization of net operating loss carryforwards. Cumulative excess tax benefits of $5.4 million, related to the exercise of stock options, will be recorded in equity when realized.

	We considered all evidence available when determining whether deferred tax assets are more likely-than-not to be realized, including projected future taxable income, scheduled reversals of deferred tax liabilities and recent financial operations. The evaluation of this evidence requires significant judgment about the forecasts of future taxable income, based on the plans and estimates we are using to manage the underlying businesses. In evaluating the objective evidence that historical results provide, we consider three years of cumulative operating income. As of December 31, 2014, we have determined that deferred tax assets of $100.9 million are more likely-than-not to be realized. We have also determined that deferred tax liabilities of $ 17.8 million are required related to book basis in goodwill that has an indefinite life.

	Prior to 2012, we had recorded a valuation allowance on the majority of our deferred tax assets to reduce the deferred tax assets to the amount that was believed more likely-than-not to be realized. In assessing the need for a valuation allowance, we considered all available positive and negative evidence, including past results, the existence of cumulative losses in prior years, forecasted future taxable income, and prudent tax planning strategies. During 2012, the majority of our valuation allowance, primarily related to net operating losses (NOLs), was reversed based on historical earnings and forecasts of future taxable income, resulting in the recognition of a $56.2 million tax benefit. The remaining valuation allowance primarily relates to state NOL’s

For the next five years, and thereafter, federal net operating loss carryforwards expire as follows (in thousands):

Year Ended	Total Net				Amount Subject
	Operating Loss				to 382 limitation
	Carryforwards
2015		–				–
2016		–				–
2017		15,185				1,501
2018		12,284				–
2019		7,178				–
Thereafter		213,929				40,610
	$	248,576			$	42,111

For the next five years, and thereafter, California net operating loss carryforwards expire as follows (in thousands):

Year Ended	Total Net
	Operating Loss
	Carryforwards
2015		13,741
2016		5,629
2017		9,172
2018		–
2019		–
Thereafter		18,964
	$	47,506

We file consolidated income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. With limited exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2010. We do not anticipate the results of any open examinations would result in a material change to its financial position.

A reconciliation of the total gross amounts of unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 is as follows (in thousands):

		2014				2013				2012
Balance at beginning of year		$	3,970			$	4,184			$	3,756
Increases (Decreases) related to prior year tax positions			–				(214	)			428
Expiration of the statute of limitations for the assessment of taxes			(209	)			–				–
Balance at end of year		$	3,761			$	3,970			$	4,184

The Company believes it is reasonably possible it will reduce its unrecognized tax benefits by $3.8 million within the next twelve months.

We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the year ended December 31, 2014 we accrued an insignificant amount of interest expense. As of December 31, 2014, accrued interest and penalties were insignificant.

12_STOCKBASED_COMPENSATION

12. STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

Stock Incentive Plans

Options and Warrants

We have one long-term incentive plan which we refer to as the 2006 Plan. As of December 31, 2014, we have reserved for issuance under the 2006 Plan 11,000,000 shares of common stock. Certain options granted under the 2006 Plan to employees are intended to qualify as incentive stock options under existing tax regulations. In addition, we may issue non-qualified stock options under the 2006 Plan from time to time to non-employees, in connection with acquisitions and for other purposes and we may also issue restricted stock under the 2006 Plan. Stock options and warrants generally vest over two to five years and expire five to ten years from date of grant.

As of December 31, 2014, 2,049,176, or approximately 97.9%, of the 2,092,509 outstanding stock options granted under our 2006 Plan are fully vested. During the year ended December 31, 2014, we did not grant options or warrants under our 2006 Plan.

We have issued warrants outside the 2006 Plan under various types of arrangements to employees, and in exchange for outside services. All warrants issued to employees or consultants after our February 2007 listing on the NASDAQ Global Market have been characterized as awards under the 2006 Plan. All warrants outside the 2006 Plan have been issued with an exercise price equal to the fair value of the underlying common stock on the date of grant.

As of December 31, 2014, no warrants remain outstanding outside the 2006 Plan.

The following summarizes all of our option and warrant transactions during the year ended December 31, 2014:

Outstanding Options and Warrants

Weighted

Aggregate

Under the 2006 Plan

Average

Intrinsic

exercise

Remaining

Value

price

Contractual

Per

Life

Common

(in years)

Balance, December 31, 2013

4,701,250

3.15

Granted

–

Exercised

(2,293,741

)

2.38

Canceled, forfeited or expired

(315,000

)

5.91

Balance, December 31, 2014

2,092,509

3.58

1.19

10,307,826

Exercisable at December 31, 2014

2,049,176

3.61

1.14

10,030,655

Non-Plan

Weighted

Aggregate

Outstanding Warrants

Average

Intrinsic

Exercise

Remaining

Value

price

Contractual

Per

Life

Common

(in years)

Balance, December 31, 2013

200,000

2.62

Granted

–

Exercised

(200,000

)

2.62

Canceled, forfeited or expired

–

Balance, December 31, 2014

–

Exercisable at December 31, 2014

–

Aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between our closing stock price on December 31, 2014 and the exercise price, multiplied by the number of in-the-money options or warrants, as applicable) that would have been received by the holder had all holders exercised their options or warrants, as applicable, on December 31, 2014. Total intrinsic value of options and warrants exercised during the year ended December 31, 2014 and 2013 was approximately $7.3 million and $2.3 million, respectively. As of December 31, 2014, total unrecognized stock-based compensation expense related to non-vested employee awards was $34,300, which is expected to be recognized over a weighted average period of approximately 1.9 years.

Restricted Stock Awards (“RSA’s”)

The 2006 Plan permits the award of restricted stock. As of December 31, 2014, we have issued a total of 2,716,785 RSA’s of which 942,023 were unvested at December 31, 2014.

The following summarizes all unvested RSA’s activities during the year ended December 31, 2014:

Weighted-AverageRemaining Contractual

Weighted-Average

Term (Years)

Fair Value

RSA's outstanding at December 31, 2013

786,667

2.5

Changes during the period

Granted

1,026,785

1.71

Vested

(871,428

)

2.16

RSA's at December 31, 2014

942,024

1.01

1.96

We determine the fair value of all RSA’s based of the closing price of our common stock on award date.

Other stock bonus awards

The 2006 Plan also permits the award of stock bonuses not subject to any future service period. These awards are valued and expensed based on the closing price of our common stock on the date of award. During the year ended December 31, 2014 we issued 130,000 shares relating to these awards

In sum, of the 11,000,000 shares of common stock reserved for issuance under the 2006 Plan, at December 31, 2014, we had 7,245,535 options, warrants, shares of restricted stock and other bonus awards issued and 3,754,465 shares of common stock available for future awards.

13_EMPLOYEE_BENEFIT_PLAN

13. EMPLOYEE BENEFIT PLAN	12 Months Ended
	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLAN	We adopted a profit-sharing/savings plan pursuant to Section 401(k) of the Internal Revenue Code that covers substantially all non-professional employees. Eligible employees may contribute on a tax-deferred basis a percentage of compensation, up to the maximum allowable under tax law. Employee contributions vest immediately. The plan does not require a matching contribution by us. There was no expense for any periods presented in the report.

14_QUARTERLY_RESULTS_OF_OPERAT

14. QUARTERLY RESULTS OF OPERATIONS	12 Months Ended
14. QUARTERLY RESULTS OF OPERATIONS	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
QUARTERLY RESULTS OF OPERATIONS	The following table sets forth a summary of our unaudited quarterly operating results for each of the last eight quarters in the years ended December 31, 2014 and 2013. This quarterly data has been derived from our unaudited consolidated interim financial statements which, in our opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with our financial statements and notes thereto, included elsewhere in this report. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period (in thousands except for share and per share data).

		2014 Quarter Ended												2013 Quarter Ended
		31-Mar			30-Jun			30-Sep			31-Dec			31-Mar			30-Jun			30-Sep			31-Dec

	Statement of Operations Data:
	Net service fee revenue	$	168,876		$	179,082		$	184,059		$	185,552		$	172,940		$	176,520		$	175,188		$	178,338

	Total operating expenses		161,328			163,436			168,824			170,676			164,615			163,535			166,599			164,634

	Total other expenses		25,468			10,803			10,401			9,951			12,145			9,385			11,056			11,325

	Equity in earnings of joint ventures		(1,067	)		(1,646	)		(2,009	)		(2,248	)		(1,206	)		(1,658	)		(1,617	)		(1,713	)

	Benefit from (provision for) income taxes		4,478			(1,233	)		(2,334	)		(2,878	)		1,248			(2,497	)		483			(2,744	)

	Net (loss) income		(12,375	)		5,256			4,509			4,295			(1,366	)		2,761			(367	)		1,348

	Net (loss) income attributable to noncontrolling interests		49			112			58			90			(24	)		75			100			105

	Net (loss) income attributable to Radnet, Inc. common stockholders	$	(12,424	)	$	5,144		$	4,451		$	4,205		$	(1,342	)	$	2,686		$	(467	)	$	1,243


	Basic net (loss) income attributable to Radnet, Inc. common stockholders (loss) earnings per share:	$	(0.31	)	$	0.13		$	0.11		$	0.1		$	(0.03	)	$	0.07		$	(0.01	)	$	0.03

	Diluted net (loss) income attributable to Radnet, Inc. common stockholders (loss) earnings per share:	$	(0.31	)	$	0.13		$	0.1		$	0.1		$	(0.03	)	$	0.07		$	(0.01	)	$	0.03

	Weighted average shares outstanding
	Basic		40,010			39,217			41,645			41,783			39,314			39,217			39,236			39,244
	Diluted		40,010			39,830			44,034			44,182			39,314			39,830			39,236			39,598

15_RELATED_PARTY_TRANSACTIONS

15. RELATED PARTY TRANSACTIONS	12 Months Ended
15. RELATED PARTY TRANSACTIONS	Dec. 31, 2014
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	We use World Wide Express, a package delivery company owned by our Western Operations chief operating officer, to provide delivery services for us. For the years ended December 31, 2014, 2013 and 2012, we paid approximately $833,000, $955,000, and $948,000 respectively, to World Wide Express for those services. At December 31, 2014 and 2013, we had outstanding amounts due to World Wide Express of $61,000 and $135,000, respectively.

	On June 1, 2009 we entered into a 10-year operating lease for a building at one of our imaging centers located in Wilmington, Delaware in which our Senior Vice President of Materials Management is a 50% owner. The monthly rent under this operating lease is approximately $26,000. We believe that the monthly lease amount is in line with similar 10-year lease contracts available for comparable buildings in the area.

2_SUMMARY_OF_SIGNIFICANT_ACCOU1

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2014
Accounting Policies [Abstract]
Principles of Consolidation	PRINCIPLES OF CONSOLIDATION - The operating activities of subsidiaries are included in the accompanying consolidated financial statements from the date of acquisition. Investments in companies in which the Company has the ability to exercise significant influence, but not control, are accounted for by the equity method. All intercompany transactions and balances, including the unsettled amount of intercompany transactions with our equity method investees, have been eliminated in consolidation. As stated in Note 1 above, the BRMG and Cruse Entities are variable interest entities and we consolidate the operating activities and balance sheets of each.
Principles of Consolidation
Use of Estimates	USE OF ESTIMATES - The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions affect various matters, including our reported amounts of assets and liabilities in our consolidated balance sheets at the dates of the financial statements; our disclosure of contingent assets and liabilities at the dates of the financial statements; and our reported amounts of revenues and expenses in our consolidated statements of operations during the reporting periods. These estimates involve judgments with respect to numerous factors that are difficult to predict and are beyond management’s control. As a result, actual amounts could materially differ from these estimates.
Use of Estimates
Reclassification	RECLASSIFICATION – We have reclassified certain amounts in the 2013 and 2012 statements of cash flows to conform to the year end 2014 presentation.
Revenues	REVENUES - Service fee revenue, net of contractual allowances and discounts, consists of net patient fees received from various payors and patients themselves based mainly upon established contractual billing rates, less allowances for contractual adjustments and discounts. As it relates to BRMG and the B&C Entity centers, this service fee revenue includes payments for both the professional medical interpretation revenue recognized by BRMG and the B&C Entities as well as the payment for all other aspects related to our providing the imaging services, for which we earn management fees from BRMG and the B&C Entities. As it relates to non-BRMG and B&C Entity centers, this service fee revenue is earned through providing the use of our diagnostic imaging equipment and the provision of technical services as well as providing administration services such as clerical and administrative personnel, bookkeeping and accounting services, billing and collection, provision of medical and office supplies, secretarial, reception and transcription services, maintenance of medical records, and advertising, marketing and promotional activities.

	Service fee revenues are recorded during the period the services are provided based upon the estimated amounts due from the patients and third-party payors. Third-party payors include federal and state agencies (under the Medicare and Medicaid programs), managed care health plans, commercial insurance companies and employers. Estimates of contractual allowances under managed care health plans are based upon the payment terms specified in the related contractual agreements. Contractual payment terms in managed care agreements are generally based upon predetermined rates per discounted fee-for-service rates. We also record a provision for doubtful accounts (based primarily on historical collection experience) related to patients and copayment and deductible amounts for patients who have health care coverage under one of our third-party payors.

	Under capitation arrangements with various health plans, we earn a per-enrollee amount each month for making available diagnostic imaging services to all plan enrollees under the capitation arrangement. Revenue under capitation arrangements is recognized in the period which we are obligated to provide services to plan enrollees under contracts with various health plans.

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

		Years Ended December 31,
		2014			2013			2012
	Commercial insurance ⁽¹⁾	$	418,414		$	415,408		$	409,114
	Medicare		157,923			156,066			122,971
	Medicaid		24,248			24,017			20,101
	Workers' compensation/personal injury		30,230			34,821			26,604
	Other		39,321			34,995			39,192
	Service fee revenue, net of contractual allowances and discounts		670,136			665,307			617,982
	Provision for bad debts		(29,807	)		(27,911	)		(25,904	)
	Net service fee revenue		640,329			637,396			592,078
	Revenue under capitation arrangements		77,240			65,590			55,075
	Total net revenue	$	717,569		$	702,986		$	647,153
	__________
	(1) 20% of our net service fees revenue for each of the years ended December 31, 2014, 2013 and 2012 were earned from a single payor.
Provision for Bad Debts	PROVISION FOR BAD DEBTS - We provide for an allowance against accounts receivable that could become uncollectible to reduce the carrying value of such receivables to their estimated net realizable value. We estimate this allowance based on the aging of our accounts receivable by each type of payer over an 18-month look-back period and other relevant factors. A significant portion of our provision for bad debt relates to co-payments and deductibles owed to us from patients with insurance. Although we attempt to collect deductibles and co-payments due from patients with insurance at the time of service, this attempt to collect at the time of service is not an assessment of the patient’s ability to pay nor are revenues recognized based on an assessment of the patient’s ability to pay. There are various factors that can impact collection trends, such as changes in the economy, which in turn have an impact on the increased burden of co-payments and deductibles to be made by patients with insurance. These factors continuously change and can have an impact on collection trends and our estimation process. Our allowances for bad debts at December 31, 2014 and 2013 were $15.1 million and $12.7 million, respectively.
Provision for Bad Debts
Meaningful Use Incentive	MEANINGFUL USE INCENTIVE - Under the American Recovery and Reinvestment Act of 2009, a program was enacted that provides financial incentives for providers that successfully implement and utilize electronic health record technology to improve patient care. Our software development team in Canada established an objective to build a Radiology Information System (RIS) software platform that has been awarded Meaningful Use certification. As this certified RIS system is implemented throughout our imaging centers, the radiologists that utilize this software can be eligible for the available financial incentives. In order to receive such incentive payments providers must attest that they have demonstrated meaningful use of the certified RIS in each stage of the program. We account for this meaningful use incentive under the Gain Contingency Model outlined in ASC 450-30. Under this model, we record within non-operating income, meaningful use incentive only after Medicare accepts an attestation from the qualified eligible professional demonstrating meaningful use. We recorded approximately $2.0 million during the twelve months ended December 31, 2014 relating to this incentive. This amount was earned under a Medicare program to promote the use of electronic health record technology. Our compliance with meaningful use criteria is subject to audit by the federal government.
Accounts Receivable	ACCOUNTS RECEIVABLE - Substantially all of our accounts receivable are due under fee-for-service contracts from third party payors, such as insurance companies and government-sponsored healthcare programs, or directly from patients. Services are generally provided pursuant to one-year contracts with healthcare providers. We continuously monitor collections from our payors and maintain an allowance for bad debts based upon specific payor collection issues that we have identified and our historical experience.
Accounts Receivable
Software Revenue Recognition	SOFTWARE REVENUE RECOGNITION – Our subsidiary, eRAD, Inc., sells Picture Archiving Communications Systems (“PACS”) and related services, primarily in the United States. The PACS systems sold by eRAD are primarily composed of certain elements: hardware, software, installation and training, and support. Sales are made primarily through eRAD’s sales force. These sales are multiple-element arrangements that generally include hardware, software, software installation, configuration, system installation, training and first-year warranty support. Hardware, which is not unique or special purpose, is purchased from a third-party and resold to eRAD’s customers with a small mark-up.

	We have determined that our core software products, such as PACS, are essential to most of our arrangements as hardware, software and related services are sold as an integrated package. Therefore, these transactions are accounted for under ASC 605-25, Multiple-Element Arrangements (as modified by ASU 2009-13). Non-essential software and related services, and essential software sold on a stand-alone basis without hardware, would continue to be accounted for under ASC 985-605, Software.

	We recognize revenue for four units of accounting, hardware, software, installation (including manufacturing and configuration, training, implementation and project management) and post-contract support (“PCS”), as follows:

	•		Hardware – Revenue is recognized when the hardware is shipped. The hardware qualifies as a separate unit of accounting under ASC 605-25-25-5, as it meets the following criteria:
	o		The hardware has standalone value as it is sold separately by other vendors and the customer could resell the hardware on a standalone basis; and
	o		Delivery or performance of the undelivered items is probable and substantially within our control.
	•		Software– We sell essential software. This software revenue is recognized along with the related hardware revenue.
	•		Installation – Installation revenue related to essential software that is sold with hardware, is recognized when the installation is completed, as it qualifies as a separate unit of accounting once delivered as it can be provided by a third party.
	•		Post-Contract Support – Revenue is recognized over the term of the agreement, usually one year.

	Our transactions do not generally contain refund provisions. We allocate the transaction price to each unit of accounting using relative selling price. We consider historical pricing, list price and market considerations in determining estimated selling price in the allocation.

	For the years ended December 31, 2014, 2013 and 2012, we recorded approximately $5.5 million, $4.9 million and $4.9 million, respectively, in revenue related to our eRAD business which is included in net service fee revenue in our consolidated statement of operations. At December 31, 2014 we had a deferred revenue liability of approximately $1.9 million associated with eRAD sales which we expect to recognize into revenue over the next 12 months.

Software Development Costs	SOFTWARE DEVELOPMENT COSTS - Costs related to the research and development of new software products and enhancements to existing software products all for resale to our customers are expensed as incurred.

	We utilize a variety of computerized information systems in the day to day operation of our diagnostic imaging facilities. One such system is our front desk patient tracking system or Radiology Information System (“RIS”). We have historically utilized third party RIS software solutions and pay monthly fees to outside third party software vendors for the use of this software. We have developed our own RIS solution from the ground up through our wholly owned subsidiary, Radnet Management Information Systems (“RMIS”) and expect to utilize this system beginning in the first quarter of 2015.

	By following the accounting guidance under ASC 350-40, Accounting for the Costs of Computer Software Developed for Internal Use, the costs incurred by RMIS toward the development of this RIS system, which began on August 1, 2010 and continued until December 2014, were capitalized and will be amortized over its useful life which we determined to be 5 years. Total costs capitalized were approximately $6.4 million. Amortization of $107,000 per month will start in January 2015.

Concentration of Credit Risks	CONCENTRATION OF CREDIT RISKS - Financial instruments that potentially subject us to credit risk are primarily cash equivalents and accounts receivable. We have placed our cash and cash equivalents with one major financial institution. At times, the cash in the financial institution is temporarily in excess of the amount insured by the Federal Deposit Insurance Corporation, or FDIC. Substantially all of our accounts receivable are due under fee-for-service contracts from third party payors, such as insurance companies and government-sponsored healthcare programs, or directly from patients. Services are generally provided pursuant to one-year contracts with healthcare providers. We continuously monitor collections from our clients and maintain an allowance for bad debts based upon our historical collection experience.
Concentration of Credit Risks
Cash and Cash Equivalents	CASH AND CASH EQUIVALENTS - We consider all highly liquid investments that mature in three months or less when purchased to be cash equivalents. The carrying amount of cash and cash equivalents approximates their fair market value.
Cash and Cash Equivalents
Deferred Financing Costs	DEFERRED FINANCING COSTS - Costs of financing are deferred and amortized on a straight-line basis over the life of the associated loan, which approximates the effective interest rate method. Deferred financing costs, net of accumulated amortization, were $6.7 million and $10.0 million, for the years ended December 31, 2014 and 2013, respectively. As part of our early extinguishment of senior notes during March and April of 2014, approximately $3.4 million of deferred financing costs were written off. See Note 8, Notes Payable, Line of Credit, and Capital Leases for more information.
Deferred Financing Costs
Inventories	INVENTORIES - Inventories, consisting mainly of medical supplies, are stated at the lower of cost or market with cost determined by the first-in, first-out method.
Property and Equipment	PROPERTY AND EQUIPMENT - Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are provided using the straight-line method over the estimated useful lives, which range from 3 to 15 years. Leasehold improvements are amortized at the lesser of lease term or their estimated useful lives, whichever is shorter, which range from 3 to 30 years. Maintenance and repairs are charged to expense as incurred.
Property and Equipment
Goodwill and Indefinite Lived Intangibles	GOODWILL AND INDEFINITE LIVED INTANGIBLES - Goodwill at December 31, 2014 totaled $200.3 million. Indefinite Lived Intangible Assets at December 31, 2014 totaled $7.5 million and are associated with the value of certain trade name intangibles. Goodwill and trade name intangibles are recorded as a result of business combinations. Management evaluates goodwill and trade name intangibles, at a minimum, on an annual basis and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The fair value of a reporting unit is estimated using a combination of the income or discounted cash flows approach and the market approach, which uses comparable market data. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. Impairment of trade name intangibles is tested at the subsidiary level by comparing the subsidiary’s trade name carrying amount to its respective fair value. We tested both goodwill and trade name intangibles for impairment on October 1, 2014, noting no impairment, and have not identified any indicators of impairment through December 31, 2014.
Goodwill and Indefinite Lived Intangibles
Long-Lived Assets	LONG-LIVED ASSETS - We evaluate our long-lived assets (property and equipment) and intangibles, other than goodwill, for impairment whenever indicators of impairment exist. The accounting standards require that if the sum of the undiscounted expected future cash flows from a long-lived asset or definite-lived intangible is less than the carrying value of that asset, an asset impairment charge must be recognized. The amount of the impairment charge is calculated as the excess of the asset’s carrying value over its fair value, which generally represents the discounted future cash flows from that asset or in the case of assets we expect to sell, at fair value less costs to sell. No indicators of impairment were identified with respect to our long-lived assets as of December 31, 2014.
Long-Lived Assets
Income Taxes	INCOME TAXES - Income tax expense is computed using an asset and liability method and using expected annual effective tax rates. Under this method, deferred income tax assets and liabilities result from temporary differences in the financial reporting bases and the income tax reporting bases of assets and liabilities. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefit that, based on available evidence, is not expected to be realized. When it appears more likely than not that deferred taxes will not be realized, a valuation allowance is recorded to reduce the deferred tax asset to its estimated realizable value. For net deferred tax assets we consider estimates of future taxable income in determining whether our net deferred tax assets are more likely than not to be realized. Income taxes are further explained in Note 11.
Income Taxes
Uninsured Risks	UNINSURED RISKS – Prior to November 1, 2006 we maintained a self-insured workers’ compensation insurance program for which our third party administrator over this program continues to make payments on behalf of the Company for claims incurred from November 1, 2004 through October 31, 2006. We are required to maintain a cash collateral account with this administrator as guarantee of our submission of full reimbursement of claims paid on our behalf. We record this collateral deposit as restricted cash and include it as other assets in our consolidated balance sheet which amounted to approximately $529,000 as of both December 31, 2014 and 2013.

	With respect to the above-mentioned claims incurred from November 1, 2004 through October 31, 2006, the estimated future cash obligation associated with the unpaid portion of those claims that remain open but have not yet been resolved is recorded to accrued expenses in our consolidated balance sheet. This current liability is determined by the administrator’s estimate of loss development of open claims and was approximately $103,000 and $123,000 at December 31, 2014 and 2013, respectively.

	On November 1, 2008 we obtained a fully funded and insured workers’ compensation policy, thereby eliminating any uninsured risks for employee injuries occurring on or after that date. This fully funded policy remained in effect through November 1, 2013 and continues to cover any claims incurred through this date.

	On November 1, 2013 we entered into an arrangement with a third party administrator to process claims under a new high-deductible workers’ compensation insurance program. We have recorded liabilities as of December 31, 2014, and 2013 of $1.0 million and $280,000 for the estimated future cash obligations associated with the unpaid portion of the workers compensation claims incurred.

	We and our affiliated physicians carry an annual medical malpractice insurance policy that protects us for claims that are filed during the policy year and that fall within policy limits. The policy has a deductible for which we have recorded liabilities and included it in our consolidated balance sheets at December 31, 2014 and December 31, 2013 of approximately $88,000 and $95,000, respectively.

	In December 2008, in order to eliminate the exposure for claims not reported during the regular malpractice policy period, we purchased a medical malpractice tail policy, which provides coverage for any claims reported in the event that our medical malpractice policy expires. As of December 31, 2014, this policy remains in effect.

	We have entered into an arrangement with Blue Shield to administer and process claims under a self-insured plan that provides health insurance coverage for our employees and dependents. We have recorded liabilities as of December 31, 2014 and 2013 of $2.0 million and $2.8 million, respectively, for the estimated future cash obligations associated with the unpaid portion of the medical and dental claims incurred by our participants. Additionally, we entered into an agreement with Blue Shield for a stop loss policy that provides coverage for any claims that exceed $250,000 up to a maximum of $1.0 million in order for us to limit our exposure for unusual or catastrophic claims.

Loss and Other Unfavorable Contracts	LOSS AND OTHER UNFAVORABLE CONTRACTS – We assess the profitability of our contracts to provide management services to our contracted physician groups and identify those contracts where current operating results or forecasts indicate probable future losses. Anticipated future revenue is compared to anticipated costs. If the anticipated future cost exceeds the revenue, a loss contract accrual is recorded. In connection with the acquisition of Radiologix in November 2006, we acquired certain management service agreements for which forecasted costs exceeds forecasted revenue. As such, an $8.9 million loss contract accrual was established in purchase accounting, and is included in other non-current liabilities. The recorded loss contract accrual is being accreted into operations over the remaining term of the acquired management service agreements. As of December 31, 2014 and 2013, the remaining accrual balance is $6.1 million, and $6.4 million, respectively.

	As part of our ongoing acquisition activities, we have certain operating lease commitments for facilities that are not in use. Accordingly, we have recorded a loss contract accrual related to the remaining payments under these lease commitments. As of December 31, 2014 and 2013, the remaining loss contract accrual for these leases is $218,000 and $328,000, respectively.

	In addition and related to acquisition activity, we have certain operating lease commitments for facilities where the fair market rent differs from the lease contract rate. We have recorded an unfavorable contract liability representing the difference between the total value of the fair market rent and the contract rent over the current term of the lease applicable from the date of acquisition. As of December 31, 2014 and 2013, the unfavorable contract liability on these leases is $1.2 million and $2.1 million, respectively.

Equity Based Compensation	EQUITY BASED COMPENSATION – We have one long-term incentive plan which we refer to as the 2006 Plan. As of December 31, 2014, we have reserved for issuance under the 2006 Plan 11,000,000 shares of common stock. Certain options granted under the 2006 Plan to employees are intended to qualify as incentive stock options under existing tax regulations. In addition, we may issue non-qualified stock options and warrants under the 2006 Plan from time to time to non-employees, in connection with acquisitions and for other purposes and we may also issue restricted stock under the 2006 Plan. Stock options and warrants generally vest over two to five years and expire five to ten years from date of grant.

	The compensation expense recognized for all equity-based awards is net of estimated forfeitures and is recognized over the awards’ service periods. Equity-based compensation is classified in operating expenses within the same line item as the majority of the cash compensation paid to employees.

Foreign Currency Translation	FOREIGN CURRENCY TRANSLATION - The functional currency of our foreign subsidiaries is the local currency. In accordance with ASC 830, Foreign Currency Matters, assets and liabilities denominated in foreign currencies are translated using the exchange rate at the balance sheet dates. Revenues and expenses are translated using average exchange rates prevailing during the reporting period. Any translation adjustments resulting from this process are shown separately as a component of accumulated other comprehensive income. Foreign currency transaction gains and losses are included in the determination of net income.
Foreign Currency Translation
Comprehensive Income (Loss)	COMPREHENSIVE INCOME - ASC 220, Comprehensive Income, establishes rules for reporting and displaying comprehensive income and its components. Unrealized gains or losses on the change in fair value of the Company’s cash flow hedging activities and foreign currency translation adjustments are included in comprehensive income. The components of comprehensive income for the three years in the period ended December 31, 2014 are included in the consolidated statements of comprehensive income.
Comprehensive Income (Loss)
Fair Value Measurements	FAIR VALUE MEASUREMENTS – Assets and liabilities subject to fair value measurements are required to be disclosed within a fair value hierarchy. The fair value hierarchy ranks the quality and reliability of inputs used to determine fair value. Accordingly, assets and liabilities carried at, or permitted to be carried at, fair value are classified within the fair value hierarchy in one of the following categories based on the lowest level input that is significant to a fair value measurement:

	Level 1—Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets and liabilities.

	Level 2—Fair value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in inactive markets. Related inputs can also include those used in valuation or other pricing models such as interest rates and yield curves that can be corroborated by observable market data.

	Level 3—Fair value is determined by using inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgment.

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

		As of December 31, 2014
		Level 1			Level 2			Level 3			Total Fair Value		Total Face Value
	First Lien Term Loans	$	–		$	394,753		$	–		$	394,753	$	399,750
	Second Lien Term Loans		–			178,200			–			178,200		180,000

		As of December 31, 2013
		Level 1			Level 2			Level 3			Total		Total Face Value
	Senior Secured Term Loan	$	–		$	380,508		$	–		$	380,508	$	349,125
	Senior Notes		–			199,000			–			199,000		200,000

	The carrying value of our line of credit at December 31, 2014 of $15.3 million approximated its fair value.

	The estimated fair value of our long-term debt, which is discussed in Note 8, was determined using Level 2 inputs primarily related to comparable market prices.

	We consider the carrying amounts of cash and cash equivalents, receivables, other current assets, current liabilities and other notes payables to approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization or payment. Additionally, we consider the carrying amount of our capital lease obligations to approximate their fair value because the weighted average interest rate used to formulate the carrying amounts approximates current market rates.

Earnings Per Share	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,
		2014			2013			2012

	Net income attributable to RadNet, Inc. common stockholders	$	1,376		$	2,120		$	59,834

	BASIC NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
	Weighted average number of common shares outstanding during the period		41,070,077			39,140,480			37,751,170
	Basic net income per share attributable to RadNet, Inc. common stockholders	$	0.03		$	0.05		$	1.58
	DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
	Weighted average number of common shares outstanding during the period		41,070,077			39,140,480			37,751,170
	Add nonvested restricted stock subject only to service vesting		994,610			316,905			533,014
	Add additional shares issuable upon exercise of stock options and warrants		1,084,509			357,150			960,502
	Weighted average number of common shares used in calculating diluted net income per share		43,149,196			39,814,535			39,244,686
	Diluted net income per share attributable to RadNet, Inc. common stockholders	$	0.03		$	0.05		$	1.52

	For the years ended December 31, 2014, 2013 and 2012 we excluded 245,000, 4,663,750 and 3,825,000, respectively, outstanding options, warrants and restricted stock in the calculation of diluted earnings per share because their effect would be antidilutive.

Investment in Joint Ventures	INVESTMENT IN JOINT VENTURES – We have ten unconsolidated joint ventures with ownership interests ranging from 31% 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. We evaluate our investment in joint ventures, including cost in excess of book value (equity method goodwill) for impairment whenever indicators of impairment exist. No indicators of impairment exist as of December 31, 2014. Investment in joint ventures increased approximately $3.2 million to $32.1 million at December 31, 2014 compared to $28.9 million at December 31, 2013. This increase is summarized as follows (in thousands):

	Balance as of December 31, 2013	$	28,949
	Purchase of a 49% interest in a new joint venture (see note below)		2,168
	Equity contributions in existing joint ventures		1,394
	Equity in earnings in these joint ventures		6,970
	Distribution of earnings		(7,358	)
	Balance as of December 31, 2014	$	32,123

	On October 6, 2014, we acquired a 49% equity interest in Garden State Radiology, LLC, consisting of two multi-modality imaging centers located in New Jersey for cash consideration of $2.2 million.

	We received management service fees from the centers underlying these joint ventures of approximately $9.3 million, $9.3 million and $8.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. We eliminate any unrealized portion of our management service fees with our equity in earnings of joint ventures.

	The following table is a summary of key financial data for these joint ventures as of December 31, 2014 and 2013, respectively, and for the years ended December 31, 2014, 2013 and 2012, respectively, (in thousands):

		December 31,
	Balance Sheet Data:	2014			2013
	Current assets	$	23,636		$	16,203
	Noncurrent assets		49,347			49,324
	Current liabilities		(9,534	)		(6,158	)
	Noncurrent liabilities		(6,386	)		(6,793	)
	Total net assets	$	57,063		$	52,576
	Book value of RadNet joint venture interests	$	26,791		$	23,705
	Cost in excess of book value of acquired joint venture interests		4,970			4,922
	Elimination of intercompany profit remaining on Radnet's consolidated balance sheet		362			322
	Total value of Radnet joint venture interests	$	32,123		$	28,949

	Total book value of other joint venture partner interests	$	30,272		$	28,871


			2014				2013				2012
	Net revenue		$	101,189			$	93,134			$	85,036
	Net income		$	14,854			$	13,633			$	14,031

2_SUMMARY_OF_SIGNIFICANT_ACCOU2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Dec. 31, 2014
Accounting Policies [Abstract]
Service Fee Revenue		Years Ended December 31,
		2014			2013			2012
	Commercial insurance ⁽¹⁾	$	418,414		$	415,408		$	409,114
	Medicare		157,923			156,066			122,971
	Medicaid		24,248			24,017			20,101
	Workers' compensation/personal injury		30,230			34,821			26,604
	Other		39,321			34,995			39,192
	Service fee revenue, net of contractual allowances and discounts		670,136			665,307			617,982
	Provision for bad debts		(29,807	)		(27,911	)		(25,904	)
	Net service fee revenue		640,329			637,396			592,078
	Revenue under capitation arrangements		77,240			65,590			55,075
	Total net revenue	$	717,569		$	702,986		$	647,153
	__________
	(1) 20% of our net service fees revenue for each of the years ended December 31, 2014, 2013 and 2012 were earned from a single payor.
Fair Value of long-term debt		As of December 31, 2014
		Level 1			Level 2			Level 3			Total Fair Value		Total Face Value
	First Lien Term Loans	$	–		$	394,753		$	–		$	394,753	$	399,750
	Second Lien Term Loans		–			178,200			–			178,200		180,000

		As of December 31, 2013
		Level 1			Level 2			Level 3			Total		Total Face Value
	Senior Secured Term Loan	$	–		$	380,508		$	–		$	380,508	$	349,125
	Senior Notes		–			199,000			–			199,000		200,000

Earnings per share		Years Ended December 31,
		2014			2013			2012

	Net income attributable to RadNet, Inc. common stockholders	$	1,376		$	2,120		$	59,834

	BASIC NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
	Weighted average number of common shares outstanding during the period		41,070,077			39,140,480			37,751,170
	Basic net income per share attributable to RadNet, Inc. common stockholders	$	0.03		$	0.05		$	1.58
	DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
	Weighted average number of common shares outstanding during the period		41,070,077			39,140,480			37,751,170
	Add nonvested restricted stock subject only to service vesting		994,610			316,905			533,014
	Add additional shares issuable upon exercise of stock options and warrants		1,084,509			357,150			960,502
	Weighted average number of common shares used in calculating diluted net income per share		43,149,196			39,814,535			39,244,686
	Diluted net income per share attributable to RadNet, Inc. common stockholders	$	0.03		$	0.05		$	1.52

Investment in joint ventures	Balance as of December 31, 2013	$	28,949
	Purchase of a 49% interest in a new joint venture (see note below)		2,168
	Equity contributions in existing joint ventures		1,394
	Equity in earnings in these joint ventures		6,970
	Distribution of earnings		(7,358	)
	Balance as of December 31, 2014	$	32,123

Key financial data on joint ventures		December 31,
	Balance Sheet Data:	2014			2013
	Current assets	$	23,636		$	16,203
	Noncurrent assets		49,347			49,324
	Current liabilities		(9,534	)		(6,158	)
	Noncurrent liabilities		(6,386	)		(6,793	)
	Total net assets	$	57,063		$	52,576
	Book value of RadNet joint venture interests	$	26,791		$	23,705
	Cost in excess of book value of acquired joint venture interests		4,970			4,922
	Elimination of intercompany profit remaining on Radnet's consolidated balance sheet		362			322
	Total value of Radnet joint venture interests	$	32,123		$	28,949

	Total book value of other joint venture partner interests	$	30,272		$	28,871


			2014				2013				2012
	Net revenue		$	101,189			$	93,134			$	85,036
	Net income		$	14,854			$	13,633			$	14,031

5_GOODWILL_AND_OTHER_INTANGIBL1

5. GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
5. GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill and other intangible assets	Balance as of January 1, 2012		159,507
	Goodwill acquired through the acquisition of Camarillo Imaging		86
	Goodwill acquired through the acquisition of West Coast Radiology		5,395
	Goodwill acquired through the acquisition of Advanced Medical Imaging of Stuart		923
	Goodwill acquired through the acquisition of Orthopedic Imaging		302
	Adjustments to our preliminary allocation of the purchase price of Raven Holdings U.S., Inc.		7,895
	Goodwill acquired through the acquisition of our controlling interest in Upper Chesapeake Imaging		1,849
	Goodwill acquired through the acquisition of Vanowen Radiology		386
	Goodwill acquired through the acquisition of our controlling interest in Clinical Radiology		1,838
	Goodwill acquired through the acquisition of Lenox Hill Radiology		15,690
	Balance as of December 31, 2012		193,871
	Goodwill acquired through the acquisition of breast surgery practice in Mission Viejo, CA		185
	Adjustments to our preliminary allocation of the purchase price of Lenox Hill Radiology		(3,219	)
	Goodwill acquired through the acquisition of Park West		2,047
	Goodwill acquired through the acquisition of imaging center in Brooklyn, NY		4,206
	Goodwill associated with the sale of a wholly owned imaging center in Northfield, NJ		(1,000	)
	Goodwill acquired through the acquisition of South Valley Med Imaging		305
	Balance as of December 31, 2013		196,395
	Goodwill acquired through the acquisition of Corinthian		310
	Goodwill acquired through the acquisition of Westchester Imaging		231
	Goodwill acquired through the acquisition of Garden State Radiology		50
	Goodwill acquired through the acquisition of Medical Imaging of Manhattan		1,433
	Goodwill acquired through the acquisition of Liberty Pacific		1,288
	Goodwill acquired through the acquisition of Moreno Valley		362
	Goodwill acquired through the acquisition of Hematology-Oncology		235
	Balance as of December 31, 2014	$	200,304

Annual amortization expense		2015			2016		2017		2018		2019		Thereafter		Total		Weighted average amortization period remaining in years
	Management Service Contracts	$	2,315		$	2,315	$	2,315	$	2,315	$	2,315	$	27,205	$	38,781		16.8
	Covenant not to compete contracts		320			254		191		148		64		–		977		3.7
	Customer relationships		184			1		–		–		–		–		185		0.9
	Developed technology and in-process R&D		149			24		–		–		–		–		173		1.3
	Trade Names*		–			–		–		–		–		7,508		7,508		–
	Total Annual Amortization	$	2,968		$	2,594	$	2,506	$	2,463	$	2,379	$	34,713	$	47,624

6_PROPERTY_AND_EQUIPMENT_Table

6. PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
6. PROPERTY AND EQUIPMENT (Tables)	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Schedule of property and equipment		December 31,
		2014			2013
	Land	$	250		$	250
	Medical equipment		334,893			304,592
	Computer and office equipment, furniture and fixtures		90,031			88,946
	Software development costs		6,391			5,108
	Leasehold improvements		206,224			186,561
	Equipment under capital lease		22,753			34,407
			660,542			619,864
	Accumulated depreciation and amortization		(437,415	)		(401,317	)
		$	223,127		$	218,547

7_ACCOUNTS_PAYABLE_AND_ACCRUED1

7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	12 Months Ended
7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	Dec. 31, 2014
Payables and Accruals [Abstract]
Schedule of accounts payable and accrued expenses		December 31,
		2014		2013

	Accounts payable	$	46,855	$	36,962
	Accrued expenses		35,776		43,175
	Accrued payroll and vacation		4,970		17,902
	Accrued professional fees		10,215		8,277
	Total	$	97,816	$	106,316

8_NOTES_PAYABLE_LINE_OF_CREDIT1

8. NOTES PAYABLE, LINE OF CREDIT AND CAPITAL LEASES (Tables)	12 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
Schedule of notes payable, line of credit and capital lease obligations			December 31,
			2014				2013
	Revolving lines of credit		$	15,300			$	–

	Senior Secured Term Loan			–				385,325

	First Lien Term Loans			399,750				–

	Second Lien Term Loans			180,000				–

	Senior Unsecured Notes			–				200,000

	Discounts on term loans and notes			(11,966	)			(12,109	)

	Promissory notes payable to the former shareholders of businesses acquired at interest rates ranging from 4.0% to 6.0%, due through 2014			–				492

	Promissory notes payable to Healthcare Partners for imaging equipment acquired through acquisition at 5.25%			1,590				–

	Equipment notes payable at interest rates ranging from 4% to 11.1%, due through 2017, collateralized by medical equipment			1,153				2,064

	Obligations under capital leases at interest rates ranging from 3.8% to 9.4%, due through 2017, collateralized by medical and office equipment			11,780				5,854
	Total debt obligations			597,607				581,626
	Less: current portion			(25,105	)			(6,178	)
	Long term portion debt obligations		$	572,502			$	575,448

Annual principal maturities of notes payable	2015	$	22,435
	2016		21,840
	2017		20,766
	2018		337,452
	2019		–
	Thereafter		180,000
	Total notes payable obligations	$	582,493

Schedule of capital lease minimum payments	2015	$	6,066
	2016		5,740
	2017		573
	2018		–
	2019		–
	Thereafter		–
	Total minimum payments		12,379
	Amount representing interest		(599	)
	Present value of net minimum lease payments		11,780
	Less current portion		(5,637	)
	Long-term portion lease obligations	$	6,143

Term loans and financing activity		As of December 31, 2014
		Face Value			Discount			Total Carrying Value
	First Lien Term Loans	$	399,750		$	(9,301	)	$	390,449
	Second Lien Term Loans	$	180,000		$	(2,665	)	$	177,335
	Total	$	579,750		$	(11,966	)	$	567,784

9_COMMITMENTS_AND_CONTINGENCIE1

9. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
9. COMMITMENTS AND CONTINGENCIES (Tables)	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Schedule of operating lease payments		Facilities		Equipment		Total
	2015	$	49,817	$	10,163	$	59,980
	2016		43,928		10,041		53,969
	2017		37,677		8,546		46,223
	2018		30,778		4,572		35,350
	2019		25,240		1,087		26,327
	Thereafter		81,968		8		81,976
		$	269,408	$	34,417	$	303,825

10_DERIVATIVE_INSTRUMENTS_Tabl

10. DERIVATIVE INSTRUMENTS (Tables)	12 Months Ended
10. DERIVATIVE INSTRUMENTS (Tables)	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivative instruments	A tabular presentation of the effect of derivative instruments on our statement of operations is as follows (amounts in thousands):

	For the Year Ended December 31, 2012
	Ineffective	Amount of	Amount of Gain	Location of	Amount of Gain	Location of Gain
	Interest Rate	Gain (Loss)	(Loss)	Gain (Loss)	(Loss)	(Loss)
	Swap	Recognized	Recognized in	Recognized in	Reclassified from	Reclassified from
		in OCI on	Income on	Income on	Accumulated	Accumulated
		Derivative	Derivative	Derivative	OCI into Income	OCI into Income
		(Effective	(Ineffective	(Ineffective	(Effective	(Effective
		Portion)	Portion)	Portion)	Portion)	Portion)
	Interest rate contracts	None	$5,064	Other income/ (expense)	* ($918)	Interest
	Interest rate contracts	None	$5,064	Other income/ (expense)	* ($918)	income/(expense)

	* Amortization of OCI associated with the cash flow hedges built up through April 6, 2010 (see discussion above).

11_INCOME_TAXES_Tables

11. INCOME TAXES (Tables)	12 Months Ended
11. INCOME TAXES (Tables)	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax expense (benefit)			December 31,
			2014				2013			2012

	State current tax		$	1,283			$	643		$	1,160
	Other current tax			29				(39	)		32
	Federal deferred tax			869				3,794			(46,901	)
	State deferred tax			(214	)			(888	)		(9,518	)

	Income tax expense (benefit)		$	1,967			$	3,510		$	(55,227	)

Reconciliation of income tax expense			Years Ended December 31,
			2014				2013			2012

	Federal tax			34.00%				34.00%			34.00%
	State franchise tax, net of federal benefit			-3.64%				-14.20%			17.49%
	Other Non deductible expenses			0.00%				0.07%			-2.42%
	Meals and entertainment			4.85%				1.98%			2.22%
	Noncontrolling Interest in Partnerships			-2.88%				-1.48%			1.79%
	Equity compensation			-8.72%				35.39%			10.69%
	Changes in valuation allowance			24.52%				-17.88%			-1284.18%
	Return-to-provision			-9.57%				-1.96%			-47.80%
	Deferred true-ups and other			16.34%				0.00%			0.00%
	Uncertain tax positions			-3.67%				-2.92%			6.45%
	Expiring net operating losses			2.61%				26.64%			0.00%
	Income tax expense (benefit)			53.85%				59.64%			-1261.76%

Deferred tax assets			December 31,
			2014				2013
	Deferred tax assets:
	Net operating losses		$	87,709			$	82,630
	Accrued expenses			3,594				3,610
	Straight-Line Rent Adjustment			8,897				8,053
	Unfavorable contract liability			2,811				3,365
	Equity compensation			253				645
	Allowance for doubtful accounts			2,124				2,494
	Other			1,891				1,400
	Valuation Allowance			(6,378	)			(6,593	)
	Total Deferred Tax Assets		$	100,901			$	95,604

	Deferred tax liabilities:
	Property Plant & Equipment			(7,755	)			(7,948	)
	Goodwill			(17,833	)			(15,101	)
	Intangibles			(12,105	)			(12,162	)
	NAEM Reserve			(6,441	)			(5,555	)
	Other			(4,189	)			(1,603	)

	Total Deferred Tax Liabilities		$	(48,323	)		$	(42,369	)

	Net Deferred Tax Asset			52,578			$	53,235

Schedule of net operating loss carryforwards	Year Ended	Total Net				Amount Subject
		Operating Loss				to 382 limitation
		Carryforwards
	2015		–				–
	2016		–				–
	2017		15,185				1,501
	2018		12,284				–
	2019		7,178				–
	Thereafter		213,929				40,610
		$	248,576			$	42,111

	Year Ended	Total Net
		Operating Loss
		Carryforwards
	2015		13,741
	2016		5,629
	2017		9,172
	2018		–
	2019		–
	Thereafter		18,964
		$	47,506

Schedule of unrecognized tax benefits			2014				2013			2012
	Balance at beginning of year		$	3,970			$	4,184		$	3,756
	Increases (Decreases) related to prior year tax positions			–				(214	)		428
	Expiration of the statute of limitations for the assessment of taxes			(209	)			–			–
	Balance at end of year		$	3,761			$	3,970		$	4,184

12_STOCKBASED_COMPENSATION_Tab

12. STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of options and warrants

Outstanding Options and Warrants

Weighted

Aggregate

Under the 2006 Plan

Average

Intrinsic

exercise

Remaining

Value

price

Contractual

Per

Life

Common

(in years)

Balance, December 31, 2013

4,701,250

3.15

Granted

–

Exercised

(2,293,741

)

2.38

Canceled, forfeited or expired

(315,000

)

5.91

Balance, December 31, 2014

2,092,509

3.58

1.19

10,307,826

Exercisable at December 31, 2014

2,049,176

3.61

1.14

10,030,655

Non-Plan

Weighted

Aggregate

Outstanding Warrants

Average

Intrinsic

Exercise

Remaining

Value

price

Contractual

Per

Life

Common

(in years)

Balance, December 31, 2013

200,000

2.62

Granted

–

Exercised

(200,000

)

2.62

Canceled, forfeited or expired

–

Balance, December 31, 2014

–

Exercisable at December 31, 2014

–

Assumptions used for estimating fair value

Weighted-AverageRemaining Contractual

Weighted-Average

Term (Years)

Fair Value

RSA's outstanding at December 31, 2013

786,667

2.5

Changes during the period

Granted

1,026,785

1.71

Vested

(871,428

)

2.16

RSA's at December 31, 2014

942,024

1.01

1.96

14_QUARTERLY_RESULTS_OF_OPERAT1

14. QUARTERLY RESULTS OF OPERATIONS (Tables)	12 Months Ended
14. QUARTERLY RESULTS OF OPERATIONS (Tables)	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information		2014 Quarter Ended												2013 Quarter Ended
		31-Mar			30-Jun			30-Sep			31-Dec			31-Mar			30-Jun			30-Sep			31-Dec

	Statement of Operations Data:
	Net service fee revenue	$	168,876		$	179,082		$	184,059		$	185,552		$	172,940		$	176,520		$	175,188		$	178,338

	Total operating expenses		161,328			163,436			168,824			170,676			164,615			163,535			166,599			164,634

	Total other expenses		25,468			10,803			10,401			9,951			12,145			9,385			11,056			11,325

	Equity in earnings of joint ventures		(1,067	)		(1,646	)		(2,009	)		(2,248	)		(1,206	)		(1,658	)		(1,617	)		(1,713	)

	Benefit from (provision for) income taxes		4,478			(1,233	)		(2,334	)		(2,878	)		1,248			(2,497	)		483			(2,744	)

	Net (loss) income		(12,375	)		5,256			4,509			4,295			(1,366	)		2,761			(367	)		1,348

	Net (loss) income attributable to noncontrolling interests		49			112			58			90			(24	)		75			100			105

	Net (loss) income attributable to Radnet, Inc. common stockholders	$	(12,424	)	$	5,144		$	4,451		$	4,205		$	(1,342	)	$	2,686		$	(467	)	$	1,243


	Basic net (loss) income attributable to Radnet, Inc. common stockholders (loss) earnings per share:	$	(0.31	)	$	0.13		$	0.11		$	0.1		$	(0.03	)	$	0.07		$	(0.01	)	$	0.03

	Diluted net (loss) income attributable to Radnet, Inc. common stockholders (loss) earnings per share:	$	(0.31	)	$	0.13		$	0.1		$	0.1		$	(0.03	)	$	0.07		$	(0.01	)	$	0.03

	Weighted average shares outstanding
	Basic		40,010			39,217			41,645			41,783			39,314			39,217			39,236			39,244
	Diluted		40,010			39,830			44,034			44,182			39,314			39,830			39,236			39,598

1_NATURE_OF_BUSINESS_Details_N

1. NATURE OF BUSINESS (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BRMG and B&C Entities revenues	$89,300	$76,700	$53,400
BRMG and B&C Entities operating expenses	89,300	76,700	53,400
Management services provided to BRMG and B&C Entities	287,400	267,600	208,700
BRMG and B&C Entities accounts receivable	79,700	65,200
BRMG and B&C Entities accounts payable	$9,000	$11,900

2_SUMMARY_OF_ACCOUNTING_POLICI

2. SUMMARY OF ACCOUNTING POLICIES (Details - Summary of net revenue) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]
Commercial Insurance									$418,414	$415,408	$409,114
Medicare									157,923	156,066	122,971
Medicaid									24,248	24,017	20,101
Workers Compensation/Personal Injury									30,230	34,821	26,604
Other									39,321	34,995	39,192
Service fee revenue, net of contractual allowances and discounts									670,136	665,307	617,982
Provision for bad debts									-29,807	-27,911	-25,904
Net service fee revenue									640,329	637,396	592,078
Revenue under capitation arrangements									77,240	65,590	55,075
Total net revenue	$185,552	$184,059	$179,082	$168,876	$178,338	$175,188	$176,520	$172,940	$717,569	$702,986	$647,153

2_SUMMARY_OF_ACCOUNTING_POLICI1

2. SUMMARY OF ACCOUNTING POLICIES (Details - Fair Value Measurements) (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
FAIR VALUE MEASUREMENTS
Senior Secured Term Loan		$349,125
Senior Notes		200,000
First Lien Term Loans	399,750
Second Lien Term Loans	180,000
Level 1
FAIR VALUE MEASUREMENTS
Senior Secured Term Loan		0
Senior Notes		0
First Lien Term Loans	0
Second Lien Term Loans	0
Level 2
FAIR VALUE MEASUREMENTS
Senior Secured Term Loan		380,508
Senior Notes		199,000
First Lien Term Loans	394,753
Second Lien Term Loans	178,200
Level 3
FAIR VALUE MEASUREMENTS
Senior Secured Term Loan		0
Senior Notes		0
First Lien Term Loans	0
Second Lien Term Loans	0
Total Fair Value
FAIR VALUE MEASUREMENTS
Senior Secured Term Loan		380,508
Senior Notes		199,000
First Lien Term Loans	394,753
Second Lien Term Loans	$178,200

2_SUMMARY_OF_ACCOUNTING_POLICI2

2. SUMMARY OF ACCOUNTING POLICIES (Details - Earnings Per Share) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Share [Abstract]
Net income attributable to Radnet, Inc.'s common stockholders	$4,205	$4,451	$5,144	($12,424)	$1,243	($467)	$2,686	($1,342)	$1,376	$2,120	$59,834
BASIC NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average shares outstanding - Basic	41,783,000	41,645,000	39,217,000	40,010,000	39,244,000	39,236,000	39,217,000	39,314,000	41,070,077	39,140,480	37,751,170
Basic net income per share attributable to Radnet, Inc.'s common stockholders	$0.10	$0.11	$0.13	($0.31)	$0.03	($0.01)	$0.07	($0.03)	$0.03	$0.05	$1.58
DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average shares outstanding - Basic	41,783,000	41,645,000	39,217,000	40,010,000	39,244,000	39,236,000	39,217,000	39,314,000	41,070,077	39,140,480	37,751,170
Add nonvested restricted stock subject only to service vesting									994,610	316,905	533,014
Add additional shares issuable upon exercise of stock options and warrants									1,084,509	357,150	960,502
Weighted average shares outstanding - Diluted	44,182,000	44,034,000	39,830,000	40,010,000	39,598,000	39,236,000	39,830,000	39,314,000	43,149,196	39,814,535	39,244,686
Diluted net income per share attributable to RadNet, Inc.'s common stockholders	$0.10	$0.10	$0.13	($0.31)	$0.03	($0.01)	$0.07	($0.03)	$0.03	$0.05	$1.52

2_SUMMARY_OF_ACCOUNTING_POLICI3

2. SUMMARY OF ACCOUNTING POLICIES (Details - Investment in Joint Ventures) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Equity Method Investments and Joint Ventures [Abstract]
Beginning balance, as of January 1, 2014				$28,949					$28,949
Purchase of a 49% interest in a new joint venture									2,168
Equity contributions in existing joint ventures									1,394
Equity earnings in these joint ventures	2,248	2,009	1,646	1,067	1,713	1,617	1,658	1,206	6,970	6,194	6,476
Distribution of earnings									-7,358	-7,204	-6,477
Ending balance, as of December 31, 2014	$32,123				$28,949				$32,123	$28,949

2_SUMMARY_OF_ACCOUNTING_POLICI4

2. SUMMARY OF ACCOUNTING POLICIES (Details - Key Financial Data on Joint Ventures) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Key financial data for joint ventures
Current assets	$23,636	$16,203
Noncurrent assets	49,347	49,324
Current liabilities	-9,534	-6,158
Noncurrent liabilities	-6,386	-6,793
Total net assets	57,063	52,576
Book value of Radnet joint venture interests	26,791	23,705
Cost in excess of book value of acquired joint venture interests	4,970	4,922
Elimination of intercompany profit remaining on Radnet's consolidated balance sheet	362	322
Total value of Radnet joint venture interests	32,123	28,949
Total book value of other joint venture partner interests	30,272	28,871
Net revenue	101,189	93,134	85,036
Net income	$14,854	$13,633	$14,031

2_SUMMARY_OF_ACCOUNTING_POLICI5

2. SUMMARY OF ACCOUNTING POLICIES (Details Narrative) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Allowance for bad debts	$15,100	$12,700
Service Fee Revenue net of contractual allowances and discounts	670,136	665,307	617,982
Deferred revenue	1,964	1,344
Software development costs capitalized	6,400
Deferred financing costs, net of accumulated amortization	6,700	10,000
Goodwill	200,304	196,395	193,871	159,507
Indefinite lived intangible assets	7,508
Loss development and open claims	103	123
Malpractice contingency liability	1,000	280
Medical malpractice deductible accrual	88	95
Contract loss accrual	6,100	6,400
Lease commitment loss accrual	218	328
Unfavorable contract liability	1,200	2,100
Carrying value of line of credit	15,300	0
Increase in investment in joint ventures	3,200
Management service fees	9,300	9,300	8,500
Garden State Radiology, LLC
Equity interest acquired	49.00%
Payment for acquisition	2,200
Options
Shares excluded from diluted earnings per share calculation	245,000
Warrants
Shares excluded from diluted earnings per share calculation	4,663,750
Restricted Stock
Shares excluded from diluted earnings per share calculation	3,825,000
Workers Compensation
Self-insurance accrual	529
Health Insurance
Self-insurance accrual	2,000	2,800
eRAD
Service Fee Revenue net of contractual allowances and discounts	5,500	4,900	4,900
Deferred revenue	$1,900

4_FACILITY_ACQUISITIONS_Detail

4. FACILITY ACQUISITIONS (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Capital lease payable	$11,780	$5,854
Hematology Oncology Consultants
Acquisition, cash paid	553
Fair value of acquired fixed assets	15
Fair value of acquired inventory	164
Fair value of acquired goodwill	235
Fair value of acquired intangible assets	100
Fair value of acquired other assets	39
Imaging Centers of Pasadena
Acquisition, cash paid	1,800
Fair value of acquired fixed assets	1,700
Fair value of acquired intangible assets	105
Healthcare Partners
Acquisition, cash paid	300
Fair value of acquired fixed assets	2,100
Promissory note payable for acquisition	1,800
Moreno Valley Imaging
Acquisition, cash paid	700
Fair value of acquired fixed assets	285
Fair value of acquired goodwill	362
Fair value of acquired intangible assets	50
Fair value of acquired other assets	3
Liberty Pacific Imaging Long Beach
Acquisition, cash paid	1,900
Fair value of acquired fixed assets	577
Fair value of acquired goodwill	1,300
Fair value of acquired intangible assets	100
Capital lease payable	65
Medical Imaging of Manhattan
Acquisition, cash paid	2,400
Fair value of acquired fixed assets	672
Fair value of acquired goodwill	1,400
Fair value of acquired intangible assets	150
Fair value of acquired other assets	139
Sidney Friedman
Acquisition, cash paid	1,400
Fair value of acquired accounts receivable	470
Fair value of acquired inventory	600
Fair value of acquired goodwill	231
Fair value of acquired intangible assets	100
Leslie A. Saint-Louis
Acquisition, cash paid	360
Fair value of acquired goodwill	310
Fair value of acquired intangible assets	50
South Valley Radiology Imaging LLC
Acquisition, cash paid		1,300
Fair value of acquired fixed assets		1,000
Fair value of acquired goodwill		305
Manhattan Diagnostic Radiology
Acquisition, cash paid		2,300
Fair value of acquired fixed assets		2,000
Fair value of acquired intangible assets		150
Fair value of acquired other assets		161
Orange County Radiation Oncology, LLC
Acquisition, cash paid		1,000
Equity interest acquired		40.00%
Northfield, NJ
Net book value of investment		1,800
Divestiture, cash received		3,900
Gain on sale of investment		2,100
Brooklyn, NY
Acquisition, cash paid		2,400
Manhattan additional interest
Acquisition, cash paid		430
Equity interest acquired		52.40%
Mission Viejo, CA
Acquisition, cash paid		350
Fair value of acquired fixed assets		30
Fair value of acquired goodwill		185
Fair value of acquired working capital		$135

5_GOODWILL_AND_OTHER_INTANGIBL2

5. GOODWILL AND OTHER INTANGIBLE ASSETS (Details - Schedule of Goodwill) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Goodwill, beginning balance	$196,395	$193,871	$159,507
Goodwill acquired through acquisitions
Adjustments to preliminary allocations of purchase price
Goodwill, ending balance	200,304	196,395	193,871
Goodwill deductible for tax purposes	120,000
Camarillo Imaging
Goodwill acquired through acquisitions			86
West Coast Radiology
Goodwill acquired through acquisitions			5,395
Advanced Medical Imaging
Goodwill acquired through acquisitions			923
Orthopedic Imaging
Goodwill acquired through acquisitions			302
Raven Holdings, U.S.
Adjustments to preliminary allocations of purchase price			7,895
Upper Chesapeake Imaging
Goodwill acquired through acquisitions			1,849
Vanowen Radiology
Goodwill acquired through acquisitions			386
Clinical Radiology
Goodwill acquired through acquisitions			1,838
Lenox Hill Radiology
Goodwill acquired through acquisitions			15,690
Mission Viejo, CA
Goodwill acquired through acquisitions		185
Lenox Hill Radiology
Adjustments to preliminary allocations of purchase price		-3,219
Park West
Goodwill acquired through acquisitions		2,047
Brooklyn, NY
Goodwill acquired through acquisitions		4,026
Northfield, NJ
Goodwill acquired through acquisitions		-1,000
South Valley Radiology Imaging LLC
Goodwill acquired through acquisitions		305
Corinthian
Goodwill acquired through acquisitions	310
Westchester Imaging
Goodwill acquired through acquisitions	231
Garden State Radiology, LLC
Goodwill acquired through acquisitions	50
Medical Imaging of Manhattan
Goodwill acquired through acquisitions	1,433
Liberty Pacific Imaging Long Beach
Goodwill acquired through acquisitions	1,288
Moreno Valley Imaging
Goodwill acquired through acquisitions	362
Hematology Oncology Consultants
Goodwill acquired through acquisitions	$235

5_GOODWILL_AND_OTHER_INTANGIBL3

5. GOODWILL AND OTHER INTANGIBLE ASSETS (Details - Annual Amortization Schedule) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014
Amortization next twelve months	$2,968
Amortization year 2016	2,594
Amortization year 2017	2,506
Amortization year 2018	2,463
Amortization year 2019	2,379
Amortization year thereafter	34,713
Amortiztion total	47,624
Management Service Contracts
Amortization next twelve months	2,315
Amortization year 2016	2,315
Amortization year 2017	2,315
Amortization year 2018	2,315
Amortization year 2019	2,315
Amortization year thereafter	27,205
Amortiztion total	38,781
Weighted average amortization period remaining in years	169 months 18 days
Covenant Not To Compete
Amortization next twelve months	320
Amortization year 2016	254
Amortization year 2017	191
Amortization year 2018	148
Amortization year 2019	64
Amortization year thereafter	0
Amortiztion total	977
Weighted average amortization period remaining in years	3 years 8 months 12 days
Customer Relationships
Amortization next twelve months	184
Amortization year 2016	1
Amortization year 2017	0
Amortization year 2018	0
Amortization year 2019	0
Amortization year thereafter	0
Amortiztion total	185
Weighted average amortization period remaining in years	10 months 24 days
Developed technology and in-process R and D
Amortization next twelve months	149
Amortization year 2016	24
Amortization year 2017	0
Amortization year 2018	0
Amortization year 2019	0
Amortization year thereafter	0
Amortiztion total	173
Weighted average amortization period remaining in years	1 year 3 months 18 days
Trade Names
Amortization year 2016	0
Amortization year 2017	0
Amortization year 2018	0
Amortization year 2019	0
Amortization year thereafter	7,508
Amortiztion total	$7,508

5_GOODWILL_AND_OTHER_INTANGIBL4

5. GOODWILL AND OTHER INTANGIBLE ASSETS (Details Narrative) (USD $)	Dec. 31, 2014
In Thousands, unless otherwise specified	Dec. 31, 2014
Other intangible assets, gross	$57,500
Accumulated amortization	18,700
Noncompete Agreements [Member]
Other intangible assets, gross	5,600
Accumulated amortization	4,600
Trade Names [Member]
Other intangible assets, gross	9,000
Accumulated amortization	$1,500

6_PROPERTY_AND_EQUIPMENT_Detai

6. PROPERTY AND EQUIPMENT (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Property and equipment, gross	$660,542	$619,864
Accumulated depreciation and amortization	-437,415	-401,317
Property and equipment, net	223,127	218,547
Land
Property and equipment, gross	250	250
Medical equipment
Property and equipment, gross	334,893	304,592
Computer and office equipment, furniture and fixtures
Property and equipment, gross	90,031	88,946
Software development costs
Property and equipment, gross	6,391	5,108
Leasehold improvements
Property and equipment, gross	206,224	186,561
Equipment under capital lease
Property and equipment, gross	$22,753	$34,407

6_PROPERTY_AND_EQUIPMENT_Detai1

6. PROPERTY AND EQUIPMENT (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Property And Equipment Details Narrative
Depreciation and amortization expense	$56,200	$55,800	$54,200

7_ACCOUNTS_PAYABLE_AND_ACCRUED2

7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Payables and Accruals [Abstract]
Accounts payable	$46,855	$36,962
Accrued expenses	35,776	43,175
Accrued payroll and vacation	4,970	17,902
Accrued professional fees	10,215	8,277
Accounts payable and accrued expenses	$97,816	$106,316

8_NOTES_PAYABLE_LINE_OF_CREDIT2

8. NOTES PAYABLE, LINE OF CREDIT AND CAPITAL LEASES (Details - Schedule of debt) (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Revolving lines of credit	$15,300	$0
Senior unsecured notes	0	200,000
Discounts on term loan and notes	-11,966	-12,109
Equipment notes payable	1,153	2,064
Obligations under capital leases	11,780	5,854
Total notes payable, line of credit and capital lease obligations	597,607	581,626
Less: current portion	-25,105	-6,178
Total notes payable, line of credit and capital lease obligations, long-term	572,502	575,448
Senior Secured Term Loan
Term loans	0	385,325
First Lien Term Loan
Term loans	399,750	0
Second Lien Term Loans
Term loans	180,000	0
Former Shareholders
Promissory notes payable	0	492
Healthcare Partners
Promissory notes payable	$1,590	$0

8_NOTES_PAYABLE_Details_Annual

8. NOTES PAYABLE (Details - Annual note payable maturities) (USD $)	Dec. 31, 2014
In Thousands, unless otherwise specified	Dec. 31, 2014
Debt Disclosure [Abstract]
2015	$22,435
2016	21,840
2017	20,766
2018	337,452
2019	0
Thereafter	180,000
Annual principal maturities	$582,493

8_NOTES_PAYABLE_Details_Minimu

8. NOTES PAYABLE (Details - Minimum capital lease payments) (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
2015	$6,066
2016	5,740
2017	573
2018	0
2019	0
Total minimum payments	12,379
Amount representing interest	-599
Present value of net minimum lease payments	11,780
Less current portion	-5,637	-3,075
Long-term portion	$6,143	$2,779

8_NOTES_PAYABLE_Details_Term_L

8. NOTES PAYABLE (Details - Term Loans) (USD $)	Dec. 31, 2014
In Thousands, unless otherwise specified	Dec. 31, 2014
First Lien Term Loan
Term loans face value	$399,750
Term loans discount	-9,301
Term loan carrying value	390,449
Second Lien Term Loans
Term loans face value	180,000
Term loans discount	-2,665
Term loan carrying value	177,335
Short-term Debt [Member]
Term loans face value	579,750
Term loans discount	-11,966
Term loan carrying value	$567,784

9_COMMITMENTS_AND_CONTINGENCIE2

9. COMMITMENTS AND CONTINGENCIES (Details - Operating leases) (USD $)	Dec. 31, 2014
In Thousands, unless otherwise specified	Dec. 31, 2014
2015	$59,980
2016	53,969
2017	46,223
2018	35,350
2019	26,327
Thereafter	81,976
Total operating lease payments	303,825
Facilities
2015	49,817
2016	43,928
2017	37,677
2018	30,778
2019	25,240
Thereafter	81,968
Total operating lease payments	269,408
Equipment
2015	10,163
2016	10,041
2017	8,546
2018	4,572
2019	1,087
Thereafter	8
Total operating lease payments	$34,417

9_COMMITMENTS_AND_CONTINGENCIE3

9. COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$64,500	$65,000	$60,600

11_INCOME_TAXES_Details_Income

11. INCOME TAXES (Details - Income tax expense (benefit)) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
State current tax									$1,283	$643	$1,160
Other current tax									29	-39	32
Federal deferred tax									869	3,794	-46,901
State deferred tax									-214	-888	-9,518
Income tax expense (benefit)	$2,878	$2,334	$1,233	($4,478)	$2,744	($483)	$2,497	($1,248)	$1,967	$3,510	($55,227)

11_INCOME_TAXES_Details_Effect

11. INCOME TAXES (Details - Effective tax rates)	12 Months Ended
11. INCOME TAXES (Details - Effective tax rates)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Federal tax	34.00%	34.00%	34.00%
State franchise tax, net of federal benefit	-3.64%	-14.20%	17.49%
Other Non deductible expenses	0.00%	0.07%	-2.42%
Meals and entertainment	4.85%	1.98%	2.22%
Noncontrolling interest in partnerships	-2.88%	-1.48%	1.79%
Equity compensation	-8.72%	35.39%	10.69%
Changes in valuation allowance	24.52%	-17.88%	-1284.18%
Return-to-provision	-9.57%	-1.96%	-47.80%
Deferred tru-ups and other	16.34%	0.00%	0.00%
Uncertain tax positions	-3.67%	-2.92%	6.45%
Expiring net operating losses	2.61%	26.64%	0.00%
Income tax expense (benefit)	53.85%	59.64%	-1261.76%

11_INCOME_TAXES_Details_Deferr

11. INCOME TAXES (Details - Deferred tax assets and liabilities) (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Net operating losses	$87,709	$82,630
Accrued expenses	3,594	3,610
Straight-Line Rent Adjustment	8,897	8,053
Unfavorable contract liability	2,811	3,365
Equity compensation	253	645
Allowance for doubtful accounts	2,124	2,494
Other	1,891	1,400
Valuation allowance	-6,378	-6,593
Total deferred tax assets	100,901	95,604
Deferred tax liabilities:
Property & equipment	-7,755	-7,948
Goodwill	-17,833	-15,101
Intangibles	-12,105	-12,162
NAEM Reserve	-6,441	-555
Other	-4,189	-1,603
Total deferred tax liabilities	-48,323	-42,369
Net Deferred Tax Asset	$52,578	$53,235

11_INCOME_TAXES_Details_Net_op

11. INCOME TAXES (Details - Net operating loss carryforward) (USD $)	Dec. 31, 2014
In Thousands, unless otherwise specified	Dec. 31, 2014
Net operating loss carryforward	$248,576
NOL carryforward subject to 382 limitation	42,111
California Operating Loss Carryforward	47,506
2015
Net operating loss carryforward	0
NOL carryforward subject to 382 limitation	0
California Operating Loss Carryforward	13,741
2016
Net operating loss carryforward	0
NOL carryforward subject to 382 limitation	0
California Operating Loss Carryforward	5,629
2017
Net operating loss carryforward	15,185
NOL carryforward subject to 382 limitation	1,501
California Operating Loss Carryforward	9,172
2018
Net operating loss carryforward	12,284
NOL carryforward subject to 382 limitation	0
California Operating Loss Carryforward	0
2019
Net operating loss carryforward	7,178
NOL carryforward subject to 382 limitation	0
California Operating Loss Carryforward	0
Thereafter
Net operating loss carryforward	213,929
NOL carryforward subject to 382 limitation	40,610
California Operating Loss Carryforward	$18,964

11_INCOME_TAXES_Details_Unreco

11. INCOME TAXES (Details - Unrecognized tax benefit) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Unrecognized tax benefit, beginning balance	$3,970	$4,184	$3,756
Increases resulting from current period tax positions			428
Increases resulting from prior period tax positions		-214	0
Expiration of the statute of limitations for the assessment of taxes	-209
Unrecognized tax benefit, ending balance	$3,761	$3,970	$4,184

12_STOCKBASED_COMPENSATION_Det

12. STOCK-BASED COMPENSATION (Details - Outstanding options and warrants) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014
Outstanding Options and Warrants [Member]
Shares Outstanding, beginning balance	4,701,250
Shares granted	0
Shares exercised	-2,293,741
Shares canceled or expired	-315,000
Shares outstanding, ending blance	2,092,509
Exercisable, ending balance	2,049,176
Weighted average exercise price, beginning balance	$3.15
Weighted average exercise price, exercised	$2.38
Weighted average exercise price, cancelled or expired	$5.91
Weighted average exercise price, ending balance	$3.58
Weighted average exercise price, exercisable	$3.61
Weighted average remaining contractual life, ending balance	1 year 2 months 8 days
Weighted average remaining contractual life, exercisable	1 year 1 month 20 days
Aggregate intrinsic value, ending balance	$10,307,826
Aggregate intrinsic value, exercisable	$10,030,655
Non-Plan Outstanding Warrants [Member]
Shares Outstanding, beginning balance	200,000
Shares granted	0
Shares exercised	-200,000
Shares canceled or expired	0
Shares outstanding, ending blance	0
Exercisable, ending balance	0
Weighted average exercise price, beginning balance	$2.62
Weighted average exercise price, exercised	$2.62

12_STOCKBASED_COMPENSATION_Det1

12. STOCK-BASED COMPENSATION (Details - RSU's) (Restricted Stock Awards, USD $)	12 Months Ended
	Dec. 31, 2014
Restricted Stock Awards
RSA's outstanding, beginning balance	786,667
RSA's granted	1,026,785
RSA's vested	-871,428
RSA's outstanding, ending balance	942,024
Weighted-Average Remaining Contractual Term	1 year 4 days
Weighted-average fair value, beginning balance	$2.50
Weighted-average fair value, granted	$1.71
Weighted-average fair value, vested	$2.16
Weighted-average fair value, ending balance	$1.96

12_STOCKBASED_COMPENSATION_Det2

12. STOCK-BASED COMPENSATION (Details Narrative) (USD $)	12 Months Ended
12. STOCK-BASED COMPENSATION (Details Narrative) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Intrinsic value of options and warrants exercised	$7,300,000	$2,300,000
Unrecognized stock-based compensation expense	$34,300
Unrecognized expense weighted average period	1 year 10 months 24 days
Shares available for future issuance, options, warrants, shares of restricted stock and other bonus awards	7,245,535
Shares available for future issuance, common stock	3,754,465

14_QUARTERLY_RESULTS_OF_OPERAT2

14. QUARTERLY RESULTS OF OPERATIONS (Details-Statements of Operations) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly Results Of Operations Details-statements Of Operations
Net service fee revenue	$185,552	$184,059	$179,082	$168,876	$178,338	$175,188	$176,520	$172,940	$717,569	$702,986	$647,153
Total operating expenses	170,676	168,824	163,436	161,328	164,634	166,599	163,535	164,615	664,264	659,383	601,925
Total other expenses	9,951	10,401	10,803	25,468	11,325	11,056	9,385	12,145	56,623	43,911	47,327
Equity in earnings of joint ventures	-2,248	-2,009	-1,646	-1,067	-1,713	-1,617	-1,658	-1,206	-6,970	-6,194	-6,476
(Provision for) benefit from income taxes	-2,878	-2,334	-1,233	4,478	-2,744	483	-2,497	1,248	-1,967	-3,510	55,227
Net (loss) income	4,295	4,509	5,256	-12,375	1,348	-367	2,761	-1,366	1,685	2,376	59,604
Net (loss) income attributable to noncontrolling intersts	90	58	112	49	105	100	75	-24	309	256	-230
Net (loss) income attributable to Radnet, Inc. common stockholders	$4,205	$4,451	$5,144	($12,424)	$1,243	($467)	$2,686	($1,342)	$1,376	$2,120	$59,834
Basic net (loss) income attributable to Radnet, Inc. common stockholders (loss) earnings per share:	$0.10	$0.11	$0.13	($0.31)	$0.03	($0.01)	$0.07	($0.03)	$0.03	$0.05	$1.58
Diluted net (loss) income attributable to Radnet, Inc. common stockholders (loss) earnings per share:	$0.10	$0.10	$0.13	($0.31)	$0.03	($0.01)	$0.07	($0.03)	$0.03	$0.05	$1.52
Weighted average shares outstanding - Basic	41,783,000	41,645,000	39,217,000	40,010,000	39,244,000	39,236,000	39,217,000	39,314,000	41,070,077	39,140,480	37,751,170
Weighted average shares outstanding - Diluted	44,182,000	44,034,000	39,830,000	40,010,000	39,598,000	39,236,000	39,830,000	39,314,000	43,149,196	39,814,535	39,244,686

15_RELATED_PARTY_TRANSACTIONS_

15. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]
Delivery services paid to related party	$833	$955	$948
Due to related party	$61	$135