RDNT - Earnings call transcript Q4 2017

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Operator

Good day, and welcome to the RadNet, Inc. Fourth Quarter and Year End Financial Results. Today's conference is being recorded. At this time, I would now like to turn the conference over to Mr. Mark Stolper, Executive Vice President and Chief Financial Officer of RadNet, Inc. ahead. go Please

Mark Stolper

morning, joining Good discuss gentlemen thank financial and fourth Thank Howard ladies Berger for results. XXXX year Dr. and to and you quarter you. full and me RadNet's today

like we'd under Act U.S. This Private of statement Securities presentation today, begin forward-looking Private XXXX. we to everyone within safe the of of Act Reform Reform the statements Securities of remind Litigation contains Litigation harbor the XXXX. meaning Before the

the diagnostic to recruiting imaging ability to harbor. of for operations financial generating and the and the technologists, acquired operations, operating business statements acquired generating grow receiving revenue within and Specifically, anticipated as by estimated RadNet's the reimbursement concerning future are contracts meaning successfully performance, with and EBITDA others, for services, third-party safe adjusted among continue integrating patient referrals radiology statements forward-looking practices, retaining

SEC statements Forward-looking and I'd turn preliminary and and call These Berger. result were differ set of events. reflect occurrence Dr. the update reports risks events December are on only XX-K to to should the not to obligation contained results or unanticipated XXXX reliance to herein. made Undue the materially of date ended as date speaks any circumstances future be risks subject the undertakes forth it to that, filed may or with actual which to information, current are no uncertainties reflect placed annual be on after time on made. shortly. to filed performance forward-looking to based include on statements, to in for forward-looking RadNet's they new especially financial is statements the RadNet statements guidance the over year publicly including with Form And XX, the like from RadNet's which expectations uncertainties management's report time, cause those RadNet's from

Howard Berger

planned our factors On give Thank and today's quarter thank full the aspects company in make morning. interest dedicating we of you, results, the discuss with believe our into open this highlights from of your your the it strategy. I'd you multifaceted and our business active our XXXX and model today. on our call fronts highlighting of I'd to strategic us and some portion for the fourth and very for like progress insight you affected remarks, demonstrated was all I call you an to performance for for the year day prepared questions. your unique that of power After to thank and call Mark. I provide which everyone Mark like XXXX. in performance will and this and joining to a XXXX Good to by productive you accomplishments We year conference future more healthcare. morning, made all RadNet. our our of the RadNet begin to

in First, same were teams growth. our operations center successful driving

existing exceeded profitability facilities, through improved are many volume the are our our drive our more EBITDA When profitability through and since volume able high, This procedural For same patient to growth the to contributed of X%. including center operations all ventures and joint XXXX. we procedures fixed. in incremental is year costs

with In in several were addition, better in successful negotiating key our contracting reimbursement health groups markets. commercial plans

see traditional with digital mammography our reimbursement during XD, in expenditures the our recent centers. capabilities additional as and both the particular, patients XXXX XXXX is Second, associated In we added to and XD made compared exams. that to with capital new mammography capacity increased investments

smaller serve Our medical We RadNet competitors. make that apart. communities ability distances those differences further from of we these the capital that offerings our to investments set service and recognize our believe centers

higher cases settings. into hospitals the is that imaging outpatient benefiting and commitment in centers announcement several Our were lower made not the direct regional also migration of from health many many of last services of call, On Anthem national regarding ambulatory its growth just cost to ago quality about representative asked our we from organic outpatient thinking waste Anthem to the This from months but the larger of freestanding announcement insurers. and and hospital is settings.

care facilities health to our health hospital We from deductible in plans freestanding get and noted their believe simply becoming have to patients plans benefit We will where lower in deciding Xx imaging engaged facilities. markets not those patients between directed rates are to Xx we sustainable. This outpatient continue of by that services. cost their high more in to being is

joint During and furthered new Cedars-Sinai MemorialCare. in JVs the existing establishing premier two of with by venture joint systems expanding strategy California, Southern hospital our XXXX, we ventures and health

We expect delivery venture their offerings. seek solutions joint as affiliations manage systems bring opportunities health to and XXXX new and will radiology

that grow. divesting to larger When managing Angeles. Cedars, We Cedars-Sinai, During XXXX, a San interested assets the we U.S. Fernando in another medical completed Island time Rhode in transferring who of needs Also our Breastlink marketplace region Maryland they the and a oncology their market. operations originally of resources able with our cancer to and HealthCare. centers five of acquisition we're business capture interest these practices professional we CML's our Verity of five sold purchased operations to continues our substantial Verity the CML, in our ownership imaging part was the April, sale these Health like California, CML for in imaging. to RadNet's we part practices on we strategic to never April we medical Operating because we the volumes In sell San operations. in that streamlined partially unlikely Cedars In another core of choice remain of consumed relationship oncology in management and operations will the to of Rhode by nine Fernando in Island September, was Cedars oncology oncology business to us our Breastlink patients. RadNet to breast patients. felt the utilize imaging breast integrated practices of Breastlink of to business resulting our of Breastlink heavily for we rely originally disease Like The strategic completed those purchased partner treatment we November and Valley of in as diagnostic from provider the the XXXX core were operations. were because centers operations most Valley operator to with in sold of connection imaging to created Los we screening

leader DIA and we we respected competitor which grow. to performance of RadNet's in operations. Associate Diagnostic address several will During challenges we been our the position core non-hospital the completed since combination acquisition and with operations one Through acquisitions our outpatient revenue in Delaware, ourselves consolidation operations. principal should benefit we has an in revenue which investments was to with our a XXXX, ours business DIA DIA's be Most made The investments of Imaging unique outpatient operators integration cycle notably, in better scalable continue competitor existing These in into invested marketplace in platform also have XXXX. future Delaware. the significantly were in Delaware of facilities and efficient to from result existing entered effective the We should opportunities. notable Through of infrastructure from to more eight in become strategic made we certain the we most of clear Delaware. markets. non-hospital imaging RadNet's centers, our

more we the discussed more we pace to As cumbersome challenges and procedures have have in services. and requirements in around are the for healthcare attempting and the collection made with past, billing get keep plans to reimbursed. effective Health

at time co-insurers. We and more collect of afterwards more are ever as of health higher the and from charges service significant visit deductable and directly forced to money a patients office result than plans

and we our management area in recruited cost service personnel the senior to new and size As increased increase and hired collection this hours technology expanding patient and invested in of have tools a productivity. customer new of operations, center teams result,

free are We XXXX, which benefits balance enhancement last our of revenue XXXX is throughout to performance XXXX. and sheet operating to to from and a discuss beginning and The In cash million and - make performance XXXX, expenditures our of this achievement like improved result XXXX cycle I'd flow, interest strategic the these cash cash we or of in acquisitions. deduction commitment Essentially, we repay of capital see in we cash direct expect this investments produced after see expense. flow, to our is and generated is deleveraging. debt can cash to our we over $XX use

we undrawn on XXXX, times lowered balance over our leverage from X EBITDA on the debt facility. credit During and ended $XXX times with year $XX to million our and our revolving sheet X.X million to net we

its are maturities amend in entirety conditions and our we of XX months of us position, have At of the this performance. finished, time, Mark, I'd growth closing to discuss the execute as liquidity, well August, our had and been deleveraging will we fourth strong second repaid over continue or our call I cost but extended XXXX the some back in over remarks. sheet us When he debt past in, term to terms consistent allowed lien in capital quarter lowered allows plan. facility highlights like our in balance which is outstanding, to credit to we we best our loan Our the the to market capital. some From strategic of to add turn perspective as the

Mark Stolper

other our before earnings subtracts non-cash and for period. results. earnings loss, earnings in of I In fourth performance XXXX briefly items the review press which and drove of in is adjusted includes losses EBITDA is levels quarter loss debt included also fourth subsidiaries of our and and to on and to XXXX place also year our gains some EBITDA, Adjusted allocations financial taken highlight believe release. full guidance review quantitative said, With interest taxes, our I'm and be or quarter and that non-GAAP or explanation shareholders the discussion, measure. what as release. further I year interest, Howard. morning's some to XXXX financial The metrics reconciliation which to provide disposal provide as adjusted some I'd full common use the in Inc and extinguishments and results a non-controlling operations Thank released give equipment, to my attempt this items. income of in financial during income company as the in adjusted net now as insights extraordinary and non-cash you, our RadNet to financial some of composition. equity EBITDA statements that will EBITDA earnings full loss attributed quarter defines like term full were depreciation adjusted year excludes will or A items unconsolidated XXXX or well on performance. into to now I one-time fourth equity I amortization will material going certain

prior months reported XX.X% quarter the EBITDA RadNet December increased quarter. same increased mostly EBITDA XXXX. and $XX.X the center the or $XXX.X and vast million year received same $X.X of in adjusted latter over or X.X% of of we For increases payer increased and ended revenue and in over XX, respectively. and volumes, three year million EBITDA million XXXX million the several in adjusted The result half increases of effective quarter is the procedural Revenue increases the the revenue same majority the $XX.X prior

procedural volume completed year's volume inclusive discussing For exams X.X% quarter perspective. increased an imaging that, X.X%, of I adjusting consolidated increased Note fourth which in and been MRI fourth and compared will as over aggregate joint increased of XXXX discuss into CT or I've XXXX, all Overall the our from we the subsidiary, of volume April for unconsolidated Rhode increased with ventures prior quarter. includes accounting x-ray, PET/CT of the Island exams XX.X%. beginning X.X% numbers fourth ultrasound, second year's the account volumes. all sale all quarter our of routine prior procedural the of volume taking and other XXXX mammography now quarter in whether

the of total same quarter accurate we was procedures. Our with and procedural operations. of a procedures The fourth JVs and part complete provides volumes all to their were more including our business by picture approach imagine. work the the will manner multi-mortality become volume of comparison. it period make of restate routine the XX.X% by material from meaningful a have million we our whereby our prior I performed consisting X.XXXXXX volumes In in did procedural XXXX,

XXXX; increase exams million income exams, and medicine, the XXX,XXX in XXXX as quarter Our of the with in x-ray with and as XXX,XXX our MRIs income XXXX. in procedures XXXX for million of asset. of quarter in and were compared XXXX; fourth of Jobs the non-cash fourth in of compared MRIs imagining compared of XXXX; the follows; fourth fourth one-time which with XXX,XXX routine million and fourth a our Cut quarter the X,XXX X.XXXXXX as of XXX,XXX the PET/CTs CTs PET/CTs mammography, as $XX.X all X,XXX a include of as quarter deferred the adjusted Net quarter X.XXXXXX quarter in CTs ultrasound, compared result other expense the with revaluation exams Act tax tax to nuclear Tax

enacted was per upon of For these periods compared the or is and XXXX million shares in December $XX.X the federal was $XX.X many aware $X.XX from related million net XX% adopting or to adjustment, With number of and of entities. provisions of foreign in respect you average weighted The income million one-time the tax of $X.X reduces XXXX $X.XX act the that outstanding This a share XX% million number Cut per XXXX quarter to Tax corporate Act fourth and to XXXX. tax rate XXXX. along of for XX, U.S. share based respectively. are Jobs to on with $X.X tax

part effects our of the existing for we deferred quarter, our As fourth made a balances. of work estimate reasonable the tax of

our recognized additional these continue As analyses, $XX.X work will make calculations of during provisional to non-cash completed. refine the and and a result is quarter, amount our as one-time tax we've to expense a million of income

federal the we benefit anticipated forward, our Going rate. lower a earnings to from corporate tax

$XX.X resulting will to more We on one-time work. call of taxes quarter tax after expect following. effective XX%. reduced the I matter federal tax non-cash and of corporate provision, quarter than expense the stock income results employee adjusted XX% XXXX, stock, connection certain statement on restricted the certain and non-cash capital of loan approximately $XXX,XXX loss Other quarter cost some of vesting adjustment GAAP options the both be inclusive income accounts, is million. and existing items reductions for tax certain of of fourth net rate on the and we've including headcount regard XXXX first to paid report to credit With facilities. was related approximately and which our costs expenses financing compensation amortization discounts this state from GAAP to of quarter compares our interest with $X.X write-off deferred with disposal This our additional completed and $XXX,XXX related of in financial to in specific fourth overall fourth interest XXXX affecting to were of savings $XXX,XXX initiatives; in non-recurring the expense of from equipment; severance million. of the the expense $XXX,XXX

fourth quarter service XXXX. of X.X% compared our X.X% with fourth of XXXX, the quarter bad expense the for revenue of was debt For fee

from and to bad decrease We the at put to bad are service effective are keep the to our fee and from revenue. are patients pleased debt centers dollars more from as place us in with debt to money required enabling in relative collecting in our being slight in procedures percentage of we we collect become more increasing The copayment controls form patients the directly coinsurance.

made Additionally, and debt, our paying collection in are teams cash investments impacting dividends also and and service we bad flow. positively DSOs customer

or the of X.X% increased or For of adjusted increased $XXX.X $XX.X adjusted reported company income EBITDA and X.X% full over million. the $X.X $XXX million of EBITDA adjusted million revenue Revenue million XXXX, year and and XXXX. million $XX.X net of

performance containment our cost As our result relative center strategy of in to remarks, structure. tuck-in expansion and XXXX revenue growth, Dr. JV mentioned several his One acquisitions, from on procedural the same the Berger our prepared contribution accrued and improved was XXXk the of for throughout we our result wages a XXXX instituted of a year as of million for program. and thing match additional salaries first We time to history, in the employees. $X.X company's this program in note that

recognize our we the and profitability was to employee work impacted, dedication and base. Although of EBITDA are our hard proud

in X.X% exams increased X.X% Rhode December For of into Overall and increased volume X.X%. Island routine XXXX all of XXXX our as sale PET/CT the ended prior X.X%, of sale restating XX MRI CT increased In increased for were of adjusting our JV Island and the was compared the consistent imaging year adjusting imaging. XXXX, operations, over The XX, to we again centers the volume volume XXXX numbers volume approach routine months the procedures for and Rhode taking we for period our all with account X,XXX,XXX total multi-modality work performed whereby with of the include procedures. XXXX. volume did by XX.X% April. from

routine certain XXX,XXX XXX,XXX follows; of compared exams Adjusted compared XXXX; PET/CTs imaging This Adjusting million million cost XXXX including expenses centers, as net the related gain XX.X of of with initiatives XX,XXX resulting of loss of and the X,XXX,XXX of number to to million accounts and X,XXX,XXX paid such sale connection on per for transaction. for in were income fees per expense refinancing million. outstanding With average specific non-cash XX,XXX interest XXXX items was and items was diluted with XXXX and amortization in million of in $X.X to with capital these diluted of accrued divesting in stock $X.X share XXXX. debt as financing as of million stock of certain non-cash impacts is interest in facilities statement and of with options adjusted GAAP XXXX. from $X.XX non-cash PET/CTs XXX,XXX and existing overall certain interest, cash following; some income headcount to and on of divested financing and issuance shares weighted income compared of as with restricted for procedures closed Affecting $XX.X exams expense million in imaging million deferred in fees expense of XXXX; $X.X XXXX. XXXX; debt as as disposal savings paid in adjusted and regard XXX,XXX reductions million. equipment, million. the amortization GAAP year income net $X.X were CTs of in on discount for non-recurring related XXXX XXXX and MRIs interest of and write-off $X.XX CTs Our the $X.X in XXXX compared compared in for compensation expense MRIs employee XXXX was in $XX.X million XX.X million all share $XX.X with severance operations; $XX.X based diluted interest upon shares compares and This credit to related $X.X our cash of

of we bad rate term of service overall Thus, is of our less debt discounts, $XXX.X for revenue cash million unadjusted $XX.X fee X.X% at an debt which reduced our expense X.X% year compared had we This for loan and as bonds was compares full For regards our $XXX.X sheet, XXXX. debt with par of the XX, million our XXXX to XXXX, net during XX, balance XXXX, balance. value total of December blended by of December With debt million. debt XXXX. with of

we of cash As and our $XX.X the undrawn credit revolving were of a end $XXX.X balance had line of XXXX, on million. of million

was accounts from resources dedicated XX, receivable December Dr. decrease at leverage debt-to-EBITDA in XXXX, $X.X efforts our a the ratio accounts net of to of receivable million, of XXXX. million EBITDA additional from turns is by the leverage $XXX.X to net mainly XXXX. EBITDA year year patient at the debt of reduced down end end X.X The collections. over to Berger from At earlier, to As debt XXXX we mentioned X.Xx and of end X.Xx our one decrease in balance

fourth to one to lower asset dispositions due day XX, had of imaging X.X days we This collection. practice results. and when for XX.X we will interests date upon sale days in mainly relative was of of and quarter approximately million we performed XXXX, year the $X.X levels, approximately XXXX, XX.X full assets ago. expenditures medical as our imaging and compared $XX.X financed to paid of and Throughout in million I sales that improved total RadNet $XX.X joint which million sales assets. $X.X net venture capital guidance discuss now XXXX capital at by released how Our year first was DSO, days leases and center December and proceeds was or financial cash outstanding equipment from is million with XXXX recognized

XXXX million. million for revenue $XXX for level $XXX was to guidance Our

actual Our million. results $XXX.X were

results $XXX Our $XXX.X were adjusted million, to actual million. $XXX EBITDA was guidance million or

Our $XX.X capital to million. actual million was million, expenditure were $XX guidance $XX level or results

or million, levels expense $XX was our interest, actual flow guidance we to actual $XX.X level categories. were exceeded guidance million. Thus met were XXXX or $XX free cash all in results level The cash generation was to million million $XX $XX.X Our million guidance million. results or $XX

the results our exceeding than and like were Our release. end and high controlled At this guidance to lower would the we spending which adjusted revenue released our XXXX and financial time, EBITDA I guidance cash to press strong morning expense contributed flow our of interest adjusted EBITDA at projected performance review in ranges our capital levels, guidance. this financial free

For guidance net for total $XXX our for revenue, $XXX EBITDA XXXX is $XXX our adjusted to guidance million, $XXX to million levels million million. level are

$XX million capital levels are expenditures, guidance our to $XX For million.

interest assumes to cash million for million. This budgeting are generation, account the center facing built between guidance and flow and that model. takes no into at our guidance is center. million. free a $XX our and expense, $XX And is acquisitions process million is same level guidance each Our is derived $XX cash $XX all completed center level true and from risks from It a levels opportunities

result capital x-ray substantially having couple the a will lower of projecting transition systems. years, our are to of We of to be upgrade and XD last as the our relative expenditures completed mammography in XXXX

turn to interest call make guidance will credit who our by Dr. rate closing some amendment expense Berger, would over our of the XXXX. and LIBOR I remarks. to senior to mitigated partially now cash facilities reflects relative Our expected higher back repricing the like

Howard Berger

in care subsidiary would combine locations, or in hence that and through healthcare have The The ways. changing centers a would rehabilitation again Expess a to today's might that Nobody is to blurring. home is Scripts. themselves that providers And hospitals Cigna address nursing their recouped Mark. healthcare the with in form traditional What health rising is and alliance in of Over and urgent RadNet an to Diagnostic insurers, Kindred CVS dynamic that and provider. they country. that and designed its of are would healthcare this you, in ability or for into would and even well disease announcement are Optum than Thank important be healthcare play purchase predicted diagnose necessary role healthcare its and that unlikely, positioned low practices, however, and effective form in lines roles JPMorgan imaging the is united to Hathaway, are in treatment. quickly accurately more relatively irreplaceable, Humana home, Berkshire spend. buying most purchasing certain physician Amazon cost surgery earlier and delivery more becoming Aetna

furthering positioned relevant practices, the model, and virtually and alternative risk on participating taking. our the imaging all insurance medical to as hospitals companies, to that We in payment capitation disciplines are models physician be diagnostic ourselves rely we tool. have and a Through

Radiology to investment not changes due example and recent Through are possible solution will We they which aligning we served. imaging the providers, to eRAD technological Turner the opportunity broader, revolve we the RadNet merely in but strategic now and to and reach transition joint transform as from both to healthcare distributed of into of investments participating System. health are and result in medical venture with being inpatient a advances our having systems. to are alignments systems information record consumer, improved which payers this, digital will equipment to affording model, electronic a Imaging are our a providers our through announcement the more communities our from with to into of the is these software as financial An position. continue adapt development.

Our XXXX model. results core our operating in the of power demonstrated

aided forward the health into same will designing competitively today. positioned alternative our in as or our on during move we've May. to many efficiencies look we accomplish payment to initiatives on As ready we gratifying computer the IT call furthering call. our our tuck-in than have I the XXXX, on models. continue call we to first operating of growth center results driving and system you quarter been What's joint and intelligence are we our never strategy for making company this Operator, as to innovative of better include is model, acquisitions, a such question-and-answer artificial updating and executing venture capabilities all multifaceted financially focus most that, diagnostics me be today are financial now portion to discussed expanding

Operator

Instructions] we'll to Thank with Tanquilut you. [Operator first Brian Jefferies And go

Brian Tanquilut

guys, the volume as just Hey if in that? it's gave for good QX, clarifying I question same-store know total revenue the don't getting year on morning about, think I congrats. you, you Mark, you but, think so I first mind, just past like given same-store,

Mark Stolper

quarter. due that pricing on And the same-store coast markets. the received when some MD&A will growth significantly the procedure K different pretty most increases and we and so we in we east you in our Yes, west release But that this payer benefit several see of it some, was in exceeded to our the section it of Brian. our both saw volume revenue same-store

procedural growth. volume see, over our exceeding you'll revenue growth, double So, same-store

Brian Tanquilut

mean good seems it that as that's your same-store like the about then And price moving assuming as I I we for ballpark a XXXX? you're and is increases how revenue analyzing QX, guidance same-store back that know. after Okay you for XXXX, part about be that mentioned, like given should think on X% thinking just the to right into,

Mark Stolper

have on pretty volume small typically, acquisitions last which from of here same that mean no I of the with of early both West in, the will be, procedural given X% as, began is some Xst. XXXX indications XXXX assumes we our the end in to low modest, range Coast some Health year the well, zero and the of to and venture in somewhere joint X%. that as January then growth as range out some different be, year JVs about Coast System, well full saw growth And our that which of high of at year, this we're the West end in and new in Sure, projecting and the we benefit end here come is Coast will the on East the tuck-in on the on would some the the operations Memorial expansions earlier

in in So, hard lot to, last organic that we still forward. comfortable have although press of kind X% it, the the that I been with X% we're few we - growth, going we, we of would, range years and to comping put a are

Brian Tanquilut

it in essentially Mark, right, I do to conservatism but that up Now just just this and a there you margins think environment appears and about you flat like that think that's opportunity guidance is your is described, or of positive drive as kind outlook is then good same-store that margin year?

Mark Stolper

Yes.

is prepared we to margins. made talked or think mean area opportunity I continuing revenue bit our little on the to of there significant make infrastructure, about our we've haven't a company. we investments remarks our in in cycle I investments some drive some

we dialer to in make in older some those investments, controls outsourcing -- automated customer strategic team special partners. of our additional group we're We Dallas. difficult And results some controls revenue And is to help call beefed in those some our collection We instance hired improved center service system regarding support from there more invested for cycle. bills. so, lag We've in Dallas. center to up the some we AR as around with financial senior sort self-pay, some for see management before investments -- some around technology

with starting take all for our of we these show margin on our it's create believe types through through But will our P&L flat flow. this, margin be starting they cash our some show to a XXXX possibilities. but through so, And investments it's DSOs, upside on run before that while to of enhancements, to

Brian Tanquilut

ventures talked about -- price a of pricing as talked Got through? essentially of both the then, and it. in another mean some Memorial then, done. JVs, question put JV is for can the for a businesses driving I opportunity to do JVs of these line last how grow question see dynamic some Mark number operational the of are that you is top you you second Two that's on terms the about new margin joint Howard, have of and increases Care, part think questions, runway expand these the have Managed lot result I side or improvements And there that as And you is, of other that the mean those the as I one, growth? to

Howard Berger

Well, I take will first question. part to the your of try

be was with the with Should ventures. strategy hospital joint the Our not system. it's noted single hospital, that with it's a

But we additional hospital a hospital an every alignment care each that can markets system should primary we're the basis. the on with have visits in for that as and its that our terms of both for that community bring the as help that virtually in market hospital also have space in expanding consolidation looking recognizes the of generate RadNet operating radiology also is to into outpatient reach deal proposition the likely we're a well that their systems physicians. might it system with can and of more noted encounters capabilities for that result as the be vertical value in imaging So that

contract ventures, and keep direct it we these So of. and benefit with the hospitals hospitals through their ability also their their we we a to of system imaging within the of groups physician the which part get become joint now as

mentioned movement aware also the imaging our as growth we and of opportunities are are the of hospitals what the most there is facilities. systems the into outpatient So remarks of of in inexorable out

alternative et outpatient methods partner fit with successful to but all opportunities even from get extremely we of starting craft and of we offer other our of to lab of table not negotiating as also partners, these major Jersey, and license new to services also but in health centers The shoulder pharmacy, an just we really as you give essential expect when to New negotiation payment services has facilities. a to this in not in in with our that we have them into partner hospital continues maybe of as larger negotiating along shoulder rates. and the business allow hospital been other our that with with payers So hospitalization, example even cetera. had with terms I hospitals partner to with In be directed more of that the system that reimbursement, benefit away us can terms the only best at the think better hospitals radiology better I bundling seat delivery healthcare surgery regards in markets

experience and the -- a not benefit be of other look clearly that to but So partners by that just recognized need hospital us are use from will with can that delivery levels. believe perhaps others all to in some we of systems system I inherent a for other operations. joint in in different of number in that for with reasons potentially typical help venture are joint further on I a this their And markets where we're radiology venture kind the think

Brian Tanquilut

Thanks I appreciate that. guys.

Howard Berger

Brian. Thanks

Operator

further no this time. have We questions Instructions] [Operator at

Howard Berger

be Management that you Thank speak for RadNet you, their our the and hard all provides to like take return for look operator. their opportunity on the for our call. with of I on to speaking will dedication And continue the to you about Thank next to continued for you and stakeholders. to your thank employees Okay. leader Good and to an for all a I'd shareholders its results. opportunity market everybody endeavor great thank forward support appropriate work. with of time services our day. investment today

Operator

you And today's that Thank does conclude for your conference. participation.

may now You disconnect.

RadNet (RDNT) 8 Mar 182017 Q4 Earnings call transcript