Recent RDNT transcripts
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Mark Stolper | EVP & CFO |
Howard Berger | Chairman, President & CEO |
Brian Tanquilut | Jefferies |
Steven Brown | Barclays |
Mitra Ramgopal | Sidoti & Company |
Good day, ladies and gentlemen, and welcome to the RadNet, Inc. Fourth Quarter and Full Year 2021 Financial Results Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Mark Stolper, Executive Vice President and Chief Financial Officer of RadNet, Inc. ahead. go Please
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 preliminary and that, and These to the to they occurrence risks unanticipated differ set to the reports risks the December over are information, on events XX-K of to the like update to contained only results to XXXX, should reliance not Dr. herein. were the obligation or the of as Undue materially date speaks ended turn with made risks subject And any forth future filed new may actual be to undertakes it current are to circumstances uncertainties annual which be no time or reflect on shortly. filed placed on back to based Berger. include date made. a performance, forward-looking in for on statements, after forward-looking call RadNet's especially statements the year financial including is RadNet with events. Form XX, from RadNet's which expectations statements reflect I'd uncertainties, guidance management's report time, cause those RadNet's from publicly
call, discuss Mark On and year results, the Mark. provide to XXXX and our joining remarks, for you company questions. morning, give us you interest we from insight I this call performance thank with prepared portion like your all full the today's and everyone, more for our thank and your dedicating to I'd in Good After you to this a call and day highlights to into in conference our plan future affected you will of of for you, Thank strategy. our open morning. today. participate quarter which our factors fourth your
hope entire and ones would and to on RadNet, at I we of start, team and we like all your say you the staying Before of loved safe. behalf myself healthy are
grateful lenders extremely and our of these are wish challenging you times. including well partners, our business We employees, all stakeholders, during and shareholders, all for
fourth hospitals from pleased also out X.X% late XXX were the impact to week was out our staff procedures services COVID for improvement able increase representing at the Let's our begin. and Despite by being quarter, by by Omicron had COVID-XX, with December, from X% the surge not by of in January, volumes, only recent fourth to the performance fourth our our employees but $X last adjusted X.X%. disrupted of XXX created I quarter of issues the we in our am approximately base our staffing very facilities. EBITDA particularly $X At impacted our leave height year's has the the quarter. employees, We X.X% normal which reduced X.X% Omicron strong and am the in demand freestanding to demand COVID patient I to peaking the million. fourth our on of COVID-XX for quarter. from adjusted result The surge, our strong outpatient we revenue currently on negative migration entire the the The over decreased services leave, ongoing enough and continuing centers. overcome had ambulatory of after imaging of was patient employee The our pleased of EBITDA workforce. or surge that by percentage report out our first where with to of million in surge COVID-XX revenue
the the to more will leverage technology. cases that our has his quarter, in our review ratio prepared a still guidance in the patient million we in embedded and making us balance detail in continue in focus EBITDA. the pandemic, Additionally, adjusted our the net and which is slowdown remarks. levels. of with volume of fourth efforts COVID cash while equipment Consistent gave Mark XXXX We a our This to returning on normalized optimism throughout XXXX, this by had during sheet managing our year-end balance X.Xx over accomplished and At facilities, strengthening investments important liquidity financial we leverage. levels, $XXX
or in investments revenue outstanding DSOs company's contributed our lowest has COVID-XX important materially and sales December by XX.X for The ability make to manage at history. improvement to day to operations cycle the Our was presented in future. our our days, and XX, challenges collections XXXX, the
under only particularly cash concessions our deferrals we of million assistance left our of received of deferrals COVID-XX advanced programs over Blue given XXXX, XXXX. related and have from pleased flow federal position with million of we throughout are Currently, California liquidity which to $X repay included Shield landlords $XX We repaid and that during payroll facilities. payments, Medicare we taxes
include in that We We are acquisitions, partners organization from we during like achievements aggressive and I'd balance same-center been and of flow which we capital tuck-in so to novo on growth centers able the pandemic, long-term our reflect to of these continued further performance. throughout will gratified our and respect operating some that allows to these received spending strong extremely position which appreciative are initiatives, drive with plan. business we've repay assistance XXXX de government global to quickly. XXXX, the be believe to our us sheet cash deferrals
the highlights. of some are Here
same-center recovery protocols demand as clinical drove the functions service improved imaging capacity we diagnostic move in and past drive country XXXX, manage reimbursement capacity We increases to efficiencies consolidated centers, private to began and on support centralized for focused We growth drive certain clinical our throughout capitated payors. to the First, utilization. to operations from COVID-XX. efficiently to improving and
We accuracy. also MRI system-wide for shorter in remotely equipment allow We completed investments made improved mammography throughput scans make that in our patients of our to piloted and important control to multiple and XD adoption technologies to equipment and technologies locations. our
throughout of core triage our of in received we DeepHealth health in workflow We April to many tool mammography respect of a tuck-in AI also integrated XXXX, also this ventures. which many several DeepHealth of joint division, an submitted prepared Saige-Q year. successful of and our to We acquisitions filed our of powerful contracted to for our early expanding groups With is this last and markets, the completed were was of number DeepHealth year. the AI FDA submission clearance January FDA submitted tool its radiology remainder which advanced FDA of system -- year. within in In AI more Saige-DX, the the tool throughout
diagnostic large-scale to Also we receive most for of in for moving our management. during create health We population to the to cancer. enhanced execute for our towards of expect vision population health will be screening prevalent which clearance on cancer began quarter and our interest current We focus sometime tools breast XXXX, will imaging a screening in believe part suite securing believe prostate and future we cancers. AI We in DeepHealth's strategy. the an this the screening colon formulated lung, screening cancer integral cancer of important algorithms be second algorithm,
XX all B.V. in identified we United companies countries scanning artificial in intelligence responsibility XXXX, currently Aidence and Gregory were DeepHealth used MRI AI for and in by Holding to customers opportunities the X X completed States. for prostate AI XXXk United During its and in Aidence acquisitions lung RadNet's have address is by to CE Sorensen, Quantib Quantib for in and Europe. and led solutions who prostate of in year. for use have January Mark and approval FDA lung B.V. already is brain the cancer in leading Dr. chest our in pending assumed of Quantib this has countries worldwide, product European joined and With screening. initiatives. division clearance acquire CT Aidence FDA States customers
of the of upon Finally, approximately facilities. loan compared $X annually million our our and Based revolving as leverage debt with of we April credit. line term refinancing in are expense saving in interest XXXX, we completed current prior our ratios,
operating we to to guidance no are Mark for have development. back like growth annual performance, to lowering as Additionally, under to providing us acquired with full invest remarks. and longer the flexibility the more million, $XX as quarter fourth over with flow this discuss This of of further I payments XXXX restrictive some call levels When financial to I'd our highlights our finished, turn covenants and and loan in discuss includes over some the maintenance respect new cash by is agreement. will term detail make more credit substantially our amortization closing our he year well in subject time, XXXX. At and to
of or XXXX briefly EBITDA full gains is noncash adjusted income taking amortization, or loss loss, XXXX earnings income and to financial fourth subtracts attributable our performance. my place the items material earnings quantitative I and further insights extraordinary earnings some and taxes, adjusted I'd I to the levels, drove for be I the is which like as well XXXX I'm in into -- in RadNet, fourth said, that morning's in EBITDA included highlight use interest common provide attempt full were will in performance and is certain or statements our also on believe our company metrics interest, allocations With before Thank The our measure. now of to that Howard. debt you, noncontrolling of and EBITDA full quarter what onetime year discussion, and includes this A compensation guidance to extinguishments results. to press noncash excludes non-GAAP EBITDA, reconciliation and defines some and equity review compensation. adjusted as other shareholders or nonequity period. the now which during explanation financial as and a will items. year review provide going earnings operations give and release. unconsolidated financial will adjusted some also quarter released Inc. Adjusted XXXX subsidiaries our to I net release. equipment, to In events financial quarter results depreciation disposal fourth in loss losses year on term full of some of
$XX.X of $X.X X% quarter X.X% from or million and fourth to reported an revenue Funding adjusted Revenue Adjusted the under million. million XXXX. of the adjusted fourth RadNet CARES million million increased $XX.X the quarter $XX.X of the For increased of fourth of adjusted of was quarter, XXXX, during and fourth EBITDA or from $XXX.X million Relief X% quarter Provider remove EBITDA of the Act, increase XXXX. $X.X EBITDA
mentioned his also services our and quarter. our created adjusted the Berger by our Dr. strong The Omicron enough demand for only from not the facilities. fourth staffing $X revenue by to opening at negative remarks, the million disrupted over impact patient As $X surge overcome million in normal which reduced in EBITDA but our approximately the issues surge, COVID-XX was volumes,
For quarter year's compared quarter fourth of taking routine PET/CT prior ultrasound, volume procedures volume other account of the Overall procedures. imaging. XX.X% volume was prior x-ray, from and over In with exams, imaging XXXX, approach, quarter. flat. by did exams, of fourth our XXXX, whereby fourth the we multi-modality mammography MRI fourth quarter, consistent the and CT year's total volume, The the volume work performed all all inclusive the increased increased was of we increased were routine with into XX.X% XX.X%, X,XXX,XXX XX.X% as
which noncash of including both fourth basis, compared with XXXX. for Our XXXX XXX,XXX increased follows: CT as the XXXX quarters MRIs net adjusted X,XXX,XXX imaging and XX,XXX as the the the the which volume quarter expense, the CTs imaging and onetime in And fourth those X.X% per compared and and XXX,XXX quarter compared in and of share as fourth the depreciation fourth share quarter fourth adjusted part fully income the centers or period is same decreased the XXXX. compensation in X,XXX,XXX compared quarter diluted were for quarter fourth as RadNet routine from decrease volume was prior is in income, expense income X.X%, CTs of XXXX. of The result account diluted share were Adjusted On million imaging the X%, XXXX. an $X.XX of quarter into same-center XXXX. for a in taking share quarter. PET/CT routine volume, Overall exams, of net exams XXXX, PET/CTs year only in XXX,XXX diluted MRI amortization per in same exams count adjusted in million items, same-center or of volume increased routine XXXX. MRIs X.X%. with with increased as stock XX,XXX fourth of or in XXX,XXX $X.X procedures earnings compared with primarily of as $XX.X PET/CTs unusual with $X.XX net increase the per
as costs facilities; $XXX,XXX of $XX.X In employee disposal fourth addition transaction of with completing was credit with paid abandoning and Cash existing quarter and the in accounts, specific severance of financing from and B.V. excludes regards with GAAP of swaps; on were million the fourth With net fourth was and interest loss accrued income million headcount compensation counterparties year. million B.V. or including under with the CARES nonrecurring to expense to expense during to Holding interest acquisitions; $XX.X Funding connection $XX,XXX Quantib last quarter to noncash the in for reductions in the for the payments certain statement of settlement; the certain amortization $X.X expenses facility million cost closures. Relief $XX.X of affecting noncash which to $X.X deferred Aidence $X.X the $X.X $X.X of million. associated some non-cash discounts Provider of equipment; from quarter of XXXX to items related million loss certain quarter leases gain related interest compares income GAAP compared financing expense; fourth expense, This million following: XXXX XXXX capital swap the million. of in interest of stock our rate $X.X noncash overall period, $X.X of legal paid interest million $XXX,XXX costs deferred initiatives; related loan million savings the Act,
or or with to Provider increase increased adjusted million, million $X,XXX.X For employee the adjusted credit Relief XXXX, million as XX% compared the million Adjusting of adjusted of $XX.X or of year and XX.X% funding of compared EBITDA EBITDA the provider RadNet includes Funding $X.X the full and retention Relief $XXX.X EBITDA credit, and employee $XXX.X $XX.X an benefits as adjusted Act. exclude of with retention and Provider relief million. This $XXX.X XXXX. Revenue reported million increased CARES XX.X% of was million million revenue under EBITDA XXXX. $X.X
and XXXX, ended the XX.X%, For increased volume the increased we multi-modality The year XXXX, routine X,XXX,XXX December MRI approach, all routine were XX XX.X% procedures. XX, for months In whereby X.X%. XX.X% into as compared to volume was XX.X% total exams, increased Overall volume taking XXXX. XXXX, our volume by procedures imaging all work over XXXX the performed we consistent increased PET/CT volume, CT account did with of of imaging. from
$XX.X shares XXXX was in outstanding of per as are compared or share. exams and with PET/CTs with XX,XXX Net to loss in weighted with of all of CTs XXX,XXX XX,XXX XXXX; for X,XXX,XXX diluted XXXX; PET/CTs in $X.XX million diluted based XXXX number follows: or compared XXXX. and compared CTs million exams per XXXX; share in diluted procedures with in million a million MRIs imaging values XXX,XXX MRIs These XXXX average XXX,XXX X,XXX,XXX income compared XXXX. negative This $X.XX in routine $XX.X $XX.X are upon as Our compares in $XX.X X,XXX,XXX as as share XXXX. per net of these as in
Network's expense GAAP such interest in compares sheet, term $XX.X of interest as less $XX.X to and Jersey balance. financing income XXXX and was we of for bond nor interest includes neither million cash This of for transaction cash payments B.V. expense; stock XXXX. $XX.X from of some XXXX. abandoning with income amortization conjunction statement million including debt, credit following: million balance which a This GAAP the XXXX savings par related affecting the the $X.X million to or CARES costs retention deferred certain noncash funding $XX.X related of $XXX,XXX net noncash our Note a the our debt guarantor. $X under legal paid interest debt million million were closed. December facilities impacts value Imaging million New of Holding in to fees, employee for the of reductions to $XXX.X items, severance paid connection XX, on was million is certain With $X.X expenses in overall accounts, disposal and cash XXXX balance loss regards $XX.X for addition December our that in noncash compensation loan from XX, Quantib XXXX, cost headcount million. of nonrecurring at credit million of loss discount certain equipment; debt million of gain of debt our $XX net rate interest extinguishment Act, loan the counterparties, provider at specific amortization in unadjusted RadNet of relief which the to and expenses related With XXXX. and total initiatives; discounts, swap B.V. items leases facilities, In for employee accrued million on Aidence swaps; refinancing costs is expense financing and net our regards approximately had Adjusting completing compares in debt with million as of this existing $XX.X expense related with associated acquisitions; $XXX,XXX from borrower the settlements; of to interest with in to and $X.X and debt million $XX.X April; with $XXX.X transaction of loss capital
we million, revolving cash of which cash year-end $XXX and from up of line undrawn XXXX. million the year-end were was balance balance at XXXX, $XXX of $XXX.X on substantially credit had our a As million
As $XX we during accounts balance an our of private is receivable received in over liquidity increase deferrals $X.X remarks, XXXX. gratifying Dr. At payors repaid Berger mentioned million, million December our assistance XXXX, especially had $XXX.X government year-end XX, we his position programs, million opening was XXXX and as landlords. from of from
time to recognized in what review million a $XX that for time, that budgeted the OEM our I'd cash, and in are lessors. equipment quarter be our the like expected was $XXX,XXX de our all at we December were the days certain expenditures of release. mainly we DSOs days days which imaging $XX.X cash DSO and operating the had XX, and expenditures this XXXX, including year center venture decrease when of capital certain released with we excludes originally million. morning of to purchase Imaging Capital in than press expenditures of on by XX were of of novo in patient expenditures capital The leases X capital sale This equipment. service. financial this in of the At from Throughout improved amount efforts from lower XXXX assets XXXX, in Our joint of Jersey proceeds we locations collections, and result as guidance net the dispositions of resources is asset total XX.X compared construction dedicated at to paid interest collections DSO were XXXX. X.X Approximately million earlier. XXXX $XX.X operational New additional Network fourth our results the and levels, sale of from opportunistic of of of financial in higher
$X,XXX For range million guidance to is total net revenue, $X,XXX our million.
is to which artificial the intelligence adjusted losses anticipated businesses, million $XXX For from million. guidance EBITDA, $XXX range excludes
For $XX range million is our $XX expenditures, guidance to million. capital
for Relief $XX the range and that is of $XX level million. $X.X for proceeds understand $XX generation, Act. paid cash our It's cash XXXX And million $XX were by relief For retention is CARES impacted employee finally, million million adjusted flow to of Provider results free our million. credit to to million under our EBITDA positively important guidance guidance $X.X interest, provider
at for cuts these guidance into existed health from estimating $XXX from the adjusted Adjusting million our reimbursement the private million. The new as payors, built and are $XXX compare during an growth reductions upon reimbursement in of based including from and we beginning XXXX is various for growth, system the XXXX, X our Additionally, same-center guidance range $XXX.X XXXX. had rule of to of value released $X.X capitated this to EBITDA items, final is in if adjusted XXXX EBITDA expanded to and EBITDA contribution from of million at our come XXXX anticipated impact Medicare's increases joint million adjusted times they completed projected rate guidance ventures XXXX Medicare which Medicare the to acquisitions November. we
a wages during For in new our XXXX has where at subject approximately and the is anticipated COVID of any to guidance conservatism, to we of system guidance, roughly for in offerings. XXXX room certain forward throughout commercialization million, year. Aidence $XX that FDA and a EBITDA providing operating losses impacted progress our have the attract AI uncertainties approvals additional risks have range we into various to all for tighter environment, of retain as as of health expensive new timing $XX not guidance it which has ventures XXXX DeepHealth, the of and continuing guidance million to which talent think joint salaries labor more updates includes of the note division, the to from levels. adjusted or outperform, and resulting become this market excludes by included acquisitions Also included a course look We our our million result to and $XX Quantib, product and us we and of
allowing and Berger, stakeholders turn to back will some losses endeavor the AI each remarks. report progress these to in like throughout I'd year. track now the make of our separately the businesses throughout the providing closing our quarter core imaging who XXXX, in of will transparency Dr. performance our call to We business to
Mark. you, Thank
Moving into is XXXX, robust the demand diagnostic for growing. imaging and remains
in health centers particularly of markets. in for presented we growing and in to new or ventures. demand has overlapping in locations targeted through meet have Currently, of utilization demand are sites with focused partners unable existing model are system do to performance because expand the We have almost currently us simply capacity joint XX new to half occurring major operating and strategic new these patient XXXX we to the half these of our These of position services and significant financial sites business, strong in with areas second various de we within the the that or, Our and stages construction development construction certain opportunities cases, sites to have populations constraints our where due should we novo meet believe not hospital our be contributors identified. throughout XXXX. expansion
year. we the make now for we to we a mentioned, end quarter other As development the expect approach centers of are XXXX, remainder the progress the of on first fronts the and excited the in number XXXX. of I construction of of Besides just
We and carefully. will expenses on focus to continue driving revenue same-center while procedural managing growth
existing establishing for existing will JVs focus partners and division, advanced venture current joint expanding on clearances and will new our technology. In and successful with algorithm DeepHealth Aidence mammography discussions We new CT ones. lung we getting for advance AI
and health We by to about will payors have large-scale discussions with intelligence. large cancer driven artificial employer screening adopting also continue plans, programs groups capitated
other of facets portion of question-and-answer us position facility now ready plan. revolving along end and the a this the the we call. leading our credit for on capability operating are all million strategic financial and of the execute provide into will pursue accretive with cash Operator, Our flexibility availability to XXXX, at strong of year, the acquisitions $XXX
Brian [Operator We'll first Instructions]. Jefferies. from our Tanquilut take with question
for guess, novos. years I I'm first seeing I've So you. my XX the covered I And on guys for is you Howard, now. think focus you that first de this time question
anything So terms in the in the And of discussion you in build? versus was for with what buy maybe impetus whole what changed share market us has can that? that of
Thank the question. you for
despite payors procedures, During compliance, mammography volumes only us there imaging major COVID, the along the very was we are which demand centers. for into imaging of direct the build to making has outpatient undertaken, and that to most markets the in by new finally impressive by the substantially for that outpatient lower-cost noticed greater we think with we health way where facilities. initiatives is additional enhanced presented we've increasing elective That to capacity being efforts year, particularly imaging in challenges that that our improve in provide to is increase really business to realize led
generally create into on our as this believe new and decided embark than us, that buy. time that imaging prospects imaging artificial with which create we believe demand future, particularly this something of intelligence, but opportunistic migration And to I the that XX increased build in multiples tools, is demand breast we have the colorectal We acquisitions pursuing. for aggressively centers lung, where and it's are and So away only densely we we continues be some strategy, we business the in from to we many we due us we rather high we've will the think And for a inside done outpatient business substantially That these also for consolidation increasing hospital-based need recognizing manage will add we have see very identified have markets business. need. business and where that of it this more -- result, to demand. which cancer to in at the to to greater pieces being becomes screening of we result for in populated not locations model backlogs, just model densely and we cannot a our as because will prostate cancer, for unique that center prepare where our particular space-constrained occur, to centers and continue are equipment to that ability
number and years, of a and multiples decreasing of Xx a well for multiple are the acquisitions that that over markets satisfies seeing centers acquisitions both as of for we resources. that available more as But of fact Brian, our novo higher centers we're prudent there's decision the for substantially target demand that need use than in in larger the that our try capital the acquisition, create to really the As de are to most still EBITDA. X the given to
The noted these I center not the as been a if judicious will for you've we you opportunities expenditures you've with will, I it or growth. these need new Brian, is, of in having capital creating for be Xx believe, than about this in, de and so within acquisitions operationally change long of acquisition, of us, de astutely, to change novo less So centers because the given a in EBITDA. a substantial our and leverage, us a for perspective novo think capacities more following our but and markets, make become of additional revenue -- at least our their multiple line building construction projections the and how,
I far think strategic are in in purposes. our responsible way long company's we expenditures a careful and cash term capital that and will think more for being be managing we flow So the beneficial
by about a revived past, strategy efforts the your to makes whether the of that guess lot guess am big right door Moonshot the here, open obviously, that CT line or the your I step AI strategy on we've I how believe guess it's Howard. conversations so want matter. the think Cancer And is, as seen of And your you those these to of will sense, question in into Cologuard AI thoughts just top cancer are, being think for as you further, heard encouraged understanding some is then question, we've I a your my replace or growth I colonoscopies more because push your screening That for where going, hear cancer, next that. there payors? and push into I taking
becomes cancer landscape that screening protocol imaging for you're the there? existing protocols where of So just the how will curious evolve are thinking out instead the
Brian. Thanks
breast, itself, interpret therein allow cancer to equipment adding for help artificial have mention will scanning to Not the imaging is to do the create of the bring we mammography. If embedded which screening we what might to example, we shortening of radiologic greater with outside -- the is earlier good road, need demand and our a aspiration. for of and a making hour the where intelligence and #X, X And today as or it inevitable, the which And resolution reduce both by a mean going economic technology look personnel. number much already prostate becomes identify currently which been now and ability to us kind now more in do shortage believe cancer experience of these the has in couple are adoption down to MRI into all and little cost-effective in of can radiologists for question. Therefore, using is us artificial like and Cancer and really that as X a little or screening that prostate and Moonshot both tools times the I in time cancer screening can improves patients, a on than of MRI intelligence, prostate take that the making a imaging intelligence that a something and procedures as things. scanning modified clearer better screening for program is there it X driver itself for to of And tools, more perhaps think major lung, much equipment an what we're has a minutes. doing read things. take ago, screening What breast the tools cost accuracy. lies artificial help other cancers more there's initiatives more there's one, which to been opportunity, really Another us, Number that than if efficiently scanning that highlighted. is environment reality. realistic I than for now a that a years half used inside an for will exists down other more have financial
and high prostate for particularly is in and things Our need cancer Cancer which we The Moonshot, we like XX% and lung, to been almost screening. could cancers responsibility a wrote or screening believe even risk X do they body that if while something have breast, the we where in other of about imaging White you have cancer really protocols effective Cologuard think, if the or like read which can through mentioned, don't only cancer I've way about it reviving the tumors. House's colon identify about their part blood looks screening, release some solid talk see about they potential these talk tests, When cancer cancer we is. of that is, press all represent you of
we're and So talking morbidity the have cost for on people curve, system. impact the about terms something a earlier about changing the if you major screening which could cancer, both will, of and in
to to as but just in really these put that place, patients well Our also not is tools tools. and government the responsibility population of the come to these our get to as
regard I strategy out of providers we centers, screening intelligence helping drive networks to tools as people talking think payors but which plans imaging country the networks be for about, only more provide see to other screening along we you're with artificial centers, create can hospitals RadNet to bringing instrumental here in the So and what create there, cancer believe working healthcare compliance. is other part making even not we happen that new or in with more to throughout within and our
call as health will. help Moonshot population capital the this see strategy believe we Cancer drive are if to to provide network opportunities necessary what at there into light, And So revenue we and company off same you really be what the we time, our ground. will initiatives, get is that
healthcare a and we're great the RadNet, only So as opportunity opportunity but looking health for at industry importantly for this a management. great not population more
with And question our from Sarah James next we'll Barclays. take
This is Brown on Steve for Sarah.
question a back the just had to for So capital going I priorities deployment.
you guess, in of of from how still you calls So do that the the through and can the centers? think Like I XX% fielding business the it highlighted away guess, like your seems had centers as going year view XQ? the XX% relates JV I it percentage quarter, like brick-and-mortars inbound a to So roughly you of to like as in like payors versus, see like of I hospitals? for and guess, from more I the of update where about it imaging move like strategy half evolved imaging like or like us like on, could talk that's year end like, think traditional last the it also you beginning be
Steve. the markets. with we're has that occurred really having Thank various change is that The our you, payors discussions in
programs, to centers. patients help into and we RadNet will particularly implementing direct can As that outpatient begin centers
a this first and to are environment do because outgrowth are the occurring So part, persist part which the people of the the this for to effort long more inclined more COVID as concerns to have believe of into in hospital of likely go a less may they on time an be this. because is COVID, more that for I that very we've a really seen large time. actually that very payors aggressive
has additional strategy talk an the provides make impetus they that with us provided So network amount in of enormous our to that strides access I us given our can to to believe some this. where markets payors substantial in
here I So into can't to well has payors extent what as that as the own for we to be necessarily centers move hope while that as quantify to happened, able XXXX. we facilitate our
yes, me, excuse -- XXXX. So
starting major help imaging to we distinguish marketplace never we're So them business in terms out, almost how intelligence further screening had conversations outpatient technology there payor of hospital. and really only we the virtually not discussions with take before about that center ambulatory every out artificial but really versus having the with
we've we plans more more actually a have second being well that, the the we conversations very can how order encourage directed in XXXX. as business change insurance this company half their is of with into starting to in seen shift tools. So outpatient think much in centers hope screening about as sentiment to And that
assume our I how Steve, have half could impressive number had of significantly same-store starting we impact elements volumes of for and wait our that than growth, But that I spread that market second of second East see in. the remainder from this Coast want about question, confident to to the off which from very are here think will into can realize. that. on that in into a we reflecting for generally higher that while of X% that answered every to your of be of to we're center will I'm surge particularly you we really the virtually So -- January a February Omicron X%, I significant centers, be business January, I shift the year sure this if not say repeat very year, the still we're think me. are much
joint hospital XX% like in improved XX% with to XQ to all at I ventures year? from the flat I at was they are Yes. like they guess the looking just systems, -- get this see have or if roughly to
inbound some our That XX% well get calls both have we from partners joint closer is within reminding venture will with of the goal we're XX%. probably next XXXX. joint opportunity. now for that a drive couple Steve. as There we you still and We thank ventures coming we're to closer about new a they starting current some put into where that were Yes, shift that, in number come to that years. They're of that to believe me as initiatives slow working our current is of number to from centers XX% that on this about
large move health states so initiatives even sites that RadNet's has work are potentially And we could and really root. system the and venture markets ventures into want we joint look systems that take people a for think a we're as number other inbound that good of that joint very venture to beyond long I with started to that do we're partners calls we currently getting have as that us at can that in. core with from the even
of not joint centers almost good realistic. us, the being them that as imaging in only strategy very So a strategy for itself into that ventures confident but is that grow half opportunity to is we're our
our with Sidoti. from take next question Ramgopal We'll Mitra
a couple for of Yes, questions me.
you significantly First, and costs you're impact? I was the mitigate do labor the anything relates curious some maybe can help higher market the to to just tight as if there's of incurring, it
of for year. helping think we initiatives additional the capacity create us for our intelligence, these, And while think both which to and professional have, and ability not initiatives. we developed requiring that times perform that our which have on is efficiency of a labor, capacity we they XXXX address help them. that labor well we believe, scan of working equipment. are nonprofessional new shorten with the necessarily artificial will our we last tools, the are scanner XXXX remote some our as by equipment some particularly the have shortages. there started additional technologists, Many and manage at improve and we can to rolling along staff, will That of allow into as part level big operation of the Both manufacturers demand of Yes,
capacity. tools thank I think existing So But that of you them we're just how we're will help of for not to increase they that a in find shortage, the big tools that, and for to there bringing or without our the needing light more OEMs the suggest is bright more addressing throughput create centers additional almost technologies. design working initiative to is within capacity up on -- a it with necessarily that labor the trying of directly about to horizon the with have that part all so trying that because equipment way facilitate to --
it's back here, great. million on still anticipating AI of $XX to just that's And very and know you're the year. days early this $XX million division. then loss no, Okay, a I
breaking even a division start and to terms picture profits? Just in as your expectation for might to of eventually when, big stand-alone you expect contributing this a
the on our that contributing case. AI that's within If Okay. think RadNet XX believe it would Based numbers, division done This We or I milieu that or somebody a be by company's to thereabouts some done, has of indeed initiative, to the we whether the bold opportunities. be profitability. we right preliminary that these will positively think something create it's else. start but is to have months
will standpoint, years the it over just a burn a be takes whole. I cash whatever the industry X worth for next burden RadNet, from not for well the it, but think as
the number facilitated taken to could that should be initiatives President's to revive think doing, plan the this seriously a be extent All Moonshot Cancer we is and they world of RadNet, algorithms. the up expediting new very and of the understand some outpatient approval of XXX(k) networks engaging discussion. screening for clearance people Helping create FDA like as our who into of to such clearly that
hope screening, I in so voice, and just not We the next the opportunity and as somewhere heard, that our resources using is to are steward cancer company as of hope to the engaging inside the outside to but the jump-start portal take next reality a be that. part and -- imaging have number a days entered will for make to summit, potential to XX we XX of place which RadNet, a try
profitability to government. with So with local the both level could on having in the division payors voice levels perspective more if make company's this be heard contributing federal X-year the to we effective and shortened our on are a national
color. XQ. we're not levels to fair? anticipating of workforce sort additional in but as I'm patient then should just relates as Is be that Okay with And in back for you forward, Omicron your also volumes, the now of to you internally terms finally, saw as being going it quarter normal assuming impacted XQ as exiting first by
Yes, is. it
people optimistic not knows assuming think what surge care not delayed in returning years been that to the very and We're volumes of to who that horizon COVID, during may the the have. there's the only that believe, current impact do but come over X -- normal, we see another geopolitical experienced I together. also we've a that our lot I and issues are starting
that elective prostate normal they mammography increase not the that applies women in, we there. normally potential period did those procedures to that logic a was press may estimated their that given million that White the up colorectal cancer predominantly That the Cancer of their was the in number lung cities same to receive likely. that House press So would. kind and not an for did this the extent that clearly undertake as large cities, have in release impact. as this headline read of screening identified metropolitan should they X.X release people I Moonshot people during the centers cancer, are The cancer, cancers opening all X-year the major of from note about the have and
government hopefully, providers. to only public So opportunity some the really could the for but to efforts reengage part have the heighten the federal not implications substantial of the all and the but that on and RadNet, payors imaging for prospects
have We Dr. to in questions conference or further back I'd to no additional this remarks. for turn the like closing any At the queue. Berger time,
next opportunity our today, its be Again, their like you that their provides leader services stay work. endeavor take continued shareholders. an care on and call. and look time your continue to would investment will I appropriate I RadNet all for with thank all hard safe. to market Thank Take for shareholders employees Management to our particular to return great forward of and of for the and a support for dedication
participation. Ladies and We this your appreciate today's concludes gentlemen, conference.
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