- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the RadNet, Inc.

Third Quarter 2022 Financial Results Conference Call. Today's call is being recorded. At this time, I would like to turn the call 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 and third Thank Howard ladies Berger for results. Dr. XXXX to and you quarter you. financial and me RadNet's today

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

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

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

Dr. Howard Berger

with to I'd highlights performance, affected everyone, give After the insight On and staying XXXX to quarter plan you from loved company for call. RadNet, in today. our entire dedicating I you results, our at Good today's a factors safe. we our your for and are discuss interest and all all future for of our and you your your in like you remarks, portion Mark. your this call open to team questions. of participate say I which you, to and call, Mark will strategy. morning, behalf to you of third the provide healthy Thank prepared thank more joining would us our of and myself thank day and we hope conference on ones like into

payors have being we into that are quarter our both the efforts volume shortages third increased growing volumes increased increasing expanding Imaging us X.X%. staffing the freestanding believe same-store substantially from This in same-center by performance is service services driven better unit volumes centers. been procedural and strong we demand utilizing ambulatory but procedural Centers aggregate for During experiencing. for X.X%, facilities imaging the capacity procedure hours reporting increased demand have and X.X% to from hospitals the would from revenue imaging outside to direct We prevented

to profitability extraordinary charges, quarter amounts our of absorb temporary impacted which and the expensive were utilize we EBITDA, During operating labor forced overtime margins. and

November I workforce. XXX fallen our received to The filling latest have open September, recently, effective have have our the of signs in of more initial projected. challenging More the than we increased seeing months, guidance, are improvement more Although is peaked in labor the positions open number in In almost positions. XX% of In of at open we the and originally labor has in salaries, we representing we market positions. report our that been last anticipated XXX, wages market. positions benefits couple entire been

to COVID-XX impact companies substantially name staffing few previously staffing hospital we abated. recently our will which on we our large and Meta, many Furthermore, appropriately, continue noting reductions. certain centers staff to as believe the likes shortages has The our demand ability a to Additionally, improve, hurt our are workforce, large Amazon, systems growing. have of just and is Walmart, including Twitter, for services strong that announced the

equally was increasing revenue strongest all start November all year, regional in to and robust. experienced experiencing virtually are our We volumes we appears the have patient of month markets. be to October

improved as As move we fourth a which will believe anticipating into we quarter performance, result, we continue XXXX. are

these before We Mark. briefly review are call initiatives companywide the back turn to focused on over executing initiatives. I'm I some to going key of

our First, of have are as end we should eight facilities of facilities in almost development de we producing have markets. year, now of spanning Three quarter next revenue all another these and facilities the discussed been second open of throughout of be XX by the novo the year.

many While populations. the markets in are for where have of been where de capacity are access we facilities big novo have part current historical backlogs, constraints a or facilities patient strategy, certain our our of growth coverage developing we network not

will that future. our of acquired in assets recapturing convenient is have Imaging revenue to network better centers one In or will that New of already Jersey system announced our have the challenged we recognize partnerships volumes patient see and that we been health towards discuss With partnership with which these through in RWJBarnabas Another our roughly as creating health Network the a two of lost venture facilities loss Most participate I as gives outpatient or stated Radiology. them they -- much systems centers. path an holding otherwise a now freestanding Recently, with shortly, XXX and lower like initiatives an of and RadNet to outpatient operator recent pricing we outpatient of facilities our opportunity that in of who have past, offer within joint hospitals Many along significant more expansion hospital we patient the of our of experience. entire these XX% with forward by imaging likely Health, ventures. Montclair radiology XX% system have partnerships. health the JV significantly lose along expansions, joint

For more has Montclair and performs per Radiology owns of leading procedures six imaging diagnostic Jersey. centers provider over in operates XX XXX,XXX Radiology Montclair and year. than been Northern multimodality years New a

are of projecting add acquisition will joint to this We and that annual facilities. of over in XX million the an NJIN number $XX venture this to basis on total revenue bring centers

centers we multimodality and joint center addition, imaging In partnership In with Health include conjunction of the Dignity our with three imaging an RadNet. the Radiology women's existing contributed one expansion, Arizona facilities. expansion Diagnostic outpatient outpatient two with locations venture hospital into These affiliated Health. Dignity completed

capacity Detection on expand annual with Enhanced our Delaware. newly Downtown footprint. particularly by to these the executing have service square EBCD to The future foot and am to opportunities look of now addition to With Phoenix expansion, platform we pleased Central our regimen. year-end offering we Park Breast XX a that new In and proximity forward to XX,XXX open breast patient's area a announce joint works I a contributed in of centers concert in the this screening Cancer initiated Phoenix. called locations a XXXX pilot venture have in will facility in

innovative interpretation Health England have National AI subsidiary UK health of diseases. to combining driven which elect premium and And RadNet's cancer basis quality represents screening of to with success each using cancer Under industry. for we to support the services, present, unparalleled combined We services DX the provider annually findings the cancers. to a pilot suspicious be radiologist dose population who of first cancer pursued is breast scans patients year. can XXXX. network targeted In AI, an Aidence risk over this suspicious of driven utilize program intelligence England improved low AI a program the is read XX patients I of first that of a it for example in about AI a radiologists leading launched With cardiothoracic interpretation in one artificial risk mammography lung Check that program XX has and are screened network is and radiology to and on endeavors UK. screening introduced who on to all level screening. in ever lifetime markets the specialty million exam alone a established access RadNet programs that our the the Health over perform Currently Heart&Lung lesion teleradiology we AI way I recommend across through DeepHealth an diseases. for accuracy for itself dedicated of detecting be for the of based effective targeted the is most variety Saige-DX company which the identifies the smoked the lung tool analyzes including you of the of these findings line. anticipate during widespread end patients lung Many in our screening program CT categorizes this Targeted of as nations announced and comprehensive been important the future an teleradiology screening X program. suite interest Health, AI have fully program UK, population lung health additional when of review XXXX, mandates use program, by enroll in the patients. related RadNet given believe invite AI to UK designed the fee we population drive Committee for for specialty the the the being screening that lung certain expanding the the if assessment, personalized has indicate aged Saige-DX believe review of name types becomes additional X.X at an for and AI for this in paves mammogram September algorithms of has of focused exams assurance are and have HLH London cancer enable high in originally National widespread to cancer chronic is implemented, our that Accord, XX the could other X-XXX of interpretation controlling program, expert Lung the related AI radiologist For This a EBCD to of EBCD half use of recently and for cancers additional mammograms cancer the suspicion. in software acquisition of a million detail. all more www.myebcdmammo.com. based Screening their lung expert We combining radiologists, next over to a HLH screening. the Service's in anticipated annual screening with services

and markets, we for our labor initiatives, respect a as of rising Lastly, accelerate rates. growth the to interest pressures, could believe reimbursement opportunities with consolidation continuing result challenged

leverage, Our less and position of financial well us acquisitions, complete liquidity capital may in arise. a favorable which places to greater expensive cost accretive

million. quarter Our at of the undrawn $XX million cash $XXX balance our third was the are upon we And revolving credit end facility. over

Our and instances, our market consolidation. substantial most DSOs free us and record days we synergy local resulting are a of low XX expertise cost cash amount saving are of and from producing In a flow. unique at scale operating provide opportunities

closing of financial methodical I this are over time, all growth our we and also finished, call to to performance. through approach XXXX we to of growing follow to this will third While back will quarter managing morning, make discuss reviewed turn Mark I committed the our a some he continue of the At initiatives and have When our highlights business some like is expanding the leverage. to remarks. I'd disciplined to

Mark Stolper

gains I releasing metrics in quarter will you, a levels, an our give items. what and and our provide is which well highlight material quarter our to year-end net subsidiaries, The includes I losses believe like quarter and quantitative income measure. provide adjusted subtracts and in some to and performance certain to noncash loss, upon common or release. during update term included to defines of I and use or income financial some third results financial going as debt as for also also will to statements, amortization, items briefly review we With A of with extinguishment or loss earnings earnings drove some compensation. to as of our other into EBITDA in some third the RadNet, our extraordinary XXXX EBITDA taken disposal third on financial non-cash Howard. now guidance Inc., which unconsolidated said, of shareholders onetime further non-controlling I'm interest, financial equity first that the full of our Adjusted our results. period. EBITDA, which allocations earnings reconciliation taxes, August earnings interest is discussion, adjusted performance. May explanation I'd attempt Thank insights and will in results. and EBITDA review adjusted non-GAAP company excludes in in equipment, now be or in my adjusted quarter the XXXX amended XXXX depreciation released is In on second conjunction to and before operations were the of to loss place XXXX I and events attributable March equity that

the third segment million. RadNet quarter EBITDA of adjusted of reported of For Imaging and $XX.X its reporting $XXX.X from XXXX million revenue Centers

in $XXX.X payroll million adjusted the revenue X.X% AI in As of taxes increase last $XX.X third a EBITDA adjusted segment, or $X.X third third in Including and losses revenue $XX.X million EBITDA onetime and of XXXX. was Including decreased XXXX, quarter, This of $XXX of for year's or the third AI million the from the forgiveness quarter quarter of last quarter XXXX. XXXX compared reporting X.X% third our million with increased in was benefit quarter. the the third an of quarter year's of in excludes segment the million comparison reporting federal $XX million deferred X.X%.

facilities. the impacting shares onetime XXXX. quarter of quarter with share quarter our income For outstanding related operations; quarter was following: segment quarter earnings XXXX. from segment. based including income shares reporting third certain share the million $XX.X in diluted and of number of facilities of swaps, of and the million million of per stock; restricted pre-tax resulting quarter for $X.XX existing share, financing rate shares stock items, of related noncash XX.X $XXX,XXX $X.X leases following: the or items to average compared fair our de initiatives; credit $XXX,XXX vesting discounts and million unusual diluted and expenses million including the $X.XX amortization value savings third their amortization costs that related AI of reporting a $X.X items construction the of our from third million paid on as non-operational Diluted the number have with expense XXXX. earnings as million There de of in XXXX estimate were $XXX,XXX headcount with of the diluted yet income; to Centers noncash XX.X net connection XXXX, for for to loan in reported expense and expense and $XXX,XXX of of per deferred weighted interest rent refund unusual of the to Adjusting adjusted XXXX quarter part change a to of gain associated of novo the accumulation employee options compensation income to XXXX, of RadNet Imaging out from of noncash losses $X.X gain in during of third third and the the per equipment; XXXX income unopened $X.XX liability; under locations; novo of was of with changes per of related financing adjusted fees in affecting third these reductions paid share $XXX,XXX was open net of of $X.X net disposal other million Also capital in of upon certain $XXX,XXX compared of comprehensive net in non-cash the related certain severance third cost the were $XX.X net

imaging were with Overall volume and into mammography the quarter quarters ultrasound, CT of X.X% XX.X%. increased volume XXXX, a XX.X%, x-ray, prior volume volume over increased PET/CT the into In exams both and volume our increased exams, increased MRI quarter, routine prior X.X% taking all procedures. approach RadNet prior was of of XXXX, with performed quarter. the third X% for work the we of imaging XXXX volume all exams the CT volume of did X.X%, third third volume routine account those increased and imaging. all same-center volume compared XXXX, the PET/CT year's whereby For from Overall basis, and routine year's we same-center same procedures year X.X%. including X.X% increased account multimodality other increased third only third MRI On of part The by total consistent X,XXX,XXX increased as centers quarter quarter. over XX.X% were inclusive the taking which

which $XX total balance. Imaging of interest of this net the regards had Note million sheet, our includes we debt financing value was and New Cash RadNet With is nor exams the of with of third XXX,XXX compared procedures Our in XXXX; in XX,XXX third MRIs the the was of in This in for balance for exams counterparties, million. excludes the of quarter PET/CTs non-cash balance debt, imaging million. quarter XX, XXX,XXX unadjusted is guarantor. neither our in all cash quarter par compared quarter quarter borrower interest XXXX. that were XXXX; $XX.X of discounts, quarter accrued XX,XXX and with loan compares as XXX,XXX which million follows: MRIs bond quarter our the swap million. expense X,XXX,XXX interest $XX debt with as these XXXX; interest paid third of and third a PET/CTs of quarter, with in XXXX, as CTs CTs GAAP less for third compared of routine Network at debt with as compared third $XXX.X XXXX to XXXX which for of Jersey to of deferred $XX.X as GAAP X,XXX,XXX as expense Overall, XXXX expense, third term XXX,XXX during September the payments

our $XXX of $XX million XX, an million, and XXXX. increase At As credit balance of million. XXXX, $XXX.X revolving a $XX.X had receivable cash balance from year-end of on of line XXXX, September undrawn was XX, September accounts we our million were

XXXX, September had day excludes at XXXX, venture. company's year-end capital results. capital expenditures million of New outstanding quarter DSO time, I'd and of reporting Through dispositions September we lowest financial XXXX in revise Our $X.X which in our results Network update Jersey levels guidance and was sales or this XX, asset At at days conjunction we our total released amended first financial joint net XX our the XX, after $XX history. our This and million. Imaging of level like fourth quarter with to XXXX and second XXXX expenditures our

Imaging to $X.XXX is guidance For billion $X.XXX revenue Centers, unchanged from billion. at our

we’ve guidance our $XXX adjusted million revised $XXX EBITDA, to range For to million.

For million capital our we ranges increased $XXX expenditures, to guidance $XXX to million.

For remainder cash increased flow levels expense, an challenges extremely to difficult We're to range generation, our $XX $XX to we Berger our range had we for anticipated million And reflect the to guidance adjusting the Dr. XXXX. $XX guidance market prepared quarter decreased for free reflect interest highlighted to our on performance $XX million million. cash our the results his and which of in that to remarks, third labor million.

on We XXXX quarter with positioned excited upcoming reimbursement to we and what and makes to take a of very full optimistic update the that for and fourth are growth initiatives of the an are about give Medicare multitude I'll minutes a now 'XX XXXX on regard anticipated us few and savings know executing rates. of discuss we cost you how XXXX. year

that compared Physician rates. of expected a XXXX volume released year. rates we Fee that We our completed code received which initial As volumes. XXXX We by Medicare of With procedure our is analysis July, and an using matrix the about time weighted rates represents in at every to XX.X% to Medicare proposal time CPT proposed analysis those typically is Schedule the business reminder, part respect a reimbursement, of mix.

reimbursement bill ago, these certain management care that bill to doctors. As codes which codes. CMS primary meaning it doing bill so rarely neutrality, CMS CPT and regularly particularly you these specialties to favor may physicians codes reimbursement for years recall, forward proposed for proposed increased with evaluation reallocate physicians who budget E&M who services, from physician regularly with moved that for two for

proposed proposed cuts phased phasing of the radiology American result, reimbursement was meant the Medicare that cuts for substantially mitigated in conversion in most from Protecting provided value during last year of X% a avoided X.X%, factor Medicare conversion changes relative of by The cuts in the certain this Farmers Act. legislation faced other in a XXXX, by appeared to along year in proposed the at CPT as a As to about the last from one passed the effectively to the with were end schedule Medicare units certain several year's of factor legislation minor RVUs we this XXXX cut experienced be year In increase E&M a from related in last reimbursement, results rule governing from Cuts the XXXX and specialties factor by code cut or Sequester remainder the and during of came period. to year. in increase XXXX conversion of over The cut and to year. decrease Congressional part codes. radiology fee share expiration XXXX the majority X% propose the the The XXXX

all did Our initial to me, we rule in approximately -- million the $X through of of roughly year few mitigating the would excuse be CMS Farmers currently factor would not We scheduled. from was the $X.X majority will decline the XXXX our final the American year. the ago, just July with including happen million Association revenue hit an essentially RadNet's that lobbying $XX aggressively was medical as weeks proposal or of the its physicians, revenue billion rule the extended towards Furthermore, American AQI believe from business. of end July, and Medicare face to the X.X% Protecting where from that conversion radiologists, in ACR. and it in conversion that -- Sequester of they opposing proposed many from Cut Because A conversion specialties College expect radiology's -- like for last released Radiology, many XXXX Act there of XXXX Quality forces, factor. the from this various lobbying line in factor its proposed Medicare cut, decrease analysis the are rule, two affects decrease for to increase Medicare final Imaging main this in and which the the groups

In this Larry in extend year, the payments is from is very bill services this the and for fact, certainly Bera, through Ami experts XXXX. policy or legislation Indiana who representatives Dr. next bipartisan effect in partially a Berger, believe by increases lobbyists be make closing Congressional now turn Bucshon introduced was the like in bill physician back September, our California; last cuts year to which will in under time, will successful Democrat to high them with to Republican U.S. into Medicare who introduced from similar substantially the Medicare action Medicare the proposed cut to mitigated The At some a by call that to mitigating new program I'd and scheduled and kept ensure there go stable probability providers December. Supporting remarks. a Bera Act bill similar Medicare XXXX fully to conversion are and of XXXX Providers factor. would payments Bucshon’s

Dr. Howard Berger

Thank of we some in you, quarters on Mark. about for challenges today's earlier am coming call, RadNet. very the operating year economic and the and that next discussed environment the overall Despite enthusiastic I

RadNet best conditions or well and the the industry, sophisticated regardless most industry-specific economic healthcare indispensable our capitalized markets. largest, like. are positioned in system operator we the to of delivery our in As what are is regional greater

with other opportunities position our over relationships advantages significant arise. as advantage health a our physicians, scale could partners that competitors. These patients, as to systems Our well us capabilities capitated capitalize and create referring on of and breadth

should markets, of we candidates for AI discussed remarks. hospital in strong development position execute RadNet health pursued. I include in weaker enthusiastic difficult coming value I in expanding quarters, that in coming portion rolling operators you RadNet These lost and my and consolidation progress. forward there joint the Breast updating imaging opportunistically become and Enhanced of moment venture multitude opportunities growth Specifically a Cancer excited our we -- eager the continue centers very have offering the the In system all businesses, for and pursuing the accelerating quarters a earlier on These the and about the we in long-term our out efficiency business. novo regarding are de we Detection our our be connection and will further Imaging opening -- conclusion, call. attractive ready creating times, drive that answer aggressively to to and acquisition accretive a commercialization for In us initiatives and ahead are can to our portfolio, initiatives our now Operator, Center the core lie XXXX. question of look for we acquisitions and sorry,

Operator

Brian first question Jefferies. Instructions] [Operator We'll take our from Tanquilut with

Brian Tanquilut

I guess Mark, I'll start with you.

inflation quarter. So sticky or I about actually as was as the challenges pretty think mean how the line But lines, how the despite QX of revenue I lasting about in I results, and is the decent cost some think mean the headwinds? I to some sounds recruitment effects these it on on I obviously lasting front? just But like And you're the cost thoughts the gaining of an your side? issue. and traction know challenges these as the are curious

Mark Stolper

-- what revenue almost pay every Yes, issues healthcare had Sure. side impacted industry, seeing both which in in impacted clearly, I well as where similar the to had Brian our challenges, is cost staffing we both on it by substantially. particularly were we and impacted to mean, side we're labor as we because there

service. cases, we appointments, if could. so use appointments staff than temporary substantially reschedule we in and to cancel we other And Our we overtime had was normal, rooms, couldn't higher

our quarter. costs during higher the revenue And and so both lost were we

of that some the staffing fourth us gives recent moving amount the seen on and significant quarter into into have We improvement confidence year side. the next

came yesterday, open And XXX our remarks, as positions. employees. prepared is that of positions peaked positions September in about our in said we at XXX our down to of As report are out open HR about open the that

a better doing talent we're the lot front. So on acquisition

of the we've recruiters. refined some added I systems, think, we've one, more

has the looking little gotten in for companies a market think, bit favorable general, more I hire. to

noted also Adventist have markets layoffs. layoffs. in We systems some made hospitals our that started layoffs and doing there health that announced Health here were California, some Kaiser in some

capitalizing a stabilized. are is what quarter. into we is improving labor seeing think we're the So on fourth going market I certainly that And

and only that the seen into not move on in costs October, per which have October, here also revenue as gives quarter, confidence revenue. that a November, but month month. we've our strongest seeing November We in day we we're strong had is our the be moved tremendous very revenue We fourth strongest impact the year as us in also going similar to all early

initiatives remarks So be mention of his on into lot in the to and XXXX. to move reason not about we we prepared and revenue of what that incremental have should drive a all Dr. as optimistic, went through profitability Berger

Dr. Howard Berger

Brian. a just Hey, bit. that little me let amplify on Yes,

I as the only revenue increased add also but well further as in fully that costs, reduce other there been are There here staff things once performance. we have are we But have capabilities. And here stay. to investments other building in of help the dependency that do, up, quarter. XXXX initiatives in improve expansion that costs, increasing some that can to are think our contracting that and fourth anticipation throughout we're our any on performance making we're technological to payors, we're will as that we in help our doing we labor substantially equipment centers, think that with our in that well XXXX, will not drive throughput here into XXXX's our will taking as XXXX without

here going, our going making to to company throughout costs is labor where we're ultimately not RadNet stay you margins. the And but I be higher and industries. other just the that to Brian, hopefully adjustments grow So is and maintain healthcare, were anticipating for appropriate are think

Brian Tanquilut

Maybe into mean 'XX. thinking up kind I like year? moving maybe of as qualitatively pieces since we on guess, any be And XXXX. I that, alluded about next your should some views we to heading follow or Howard Mark, then about on growth that positive we I'll drive you think -- right, to just EBITDA ability

Dr. Howard Berger

the actual we many of them, think facilities Brian, partner working are the on I think more that I or I one we Yes, are every there hospital almost improve to have performance. but expanding add initiatives outlined of either relationships

be will majority of we're that the first the operational first substantially that think the which the year. drive I -- of will the we this by at end new revenue half XX with developing, centers of

revenue. about generates so $X Our average or million center of

XX So and part of million some will quarter new of started the second recently hope we third about year. this into already centers we've experiencing, drive far the new the so but in which -- the revenue, quarter ultimately of latter $XX only

we we'll Enhanced should form of I the very which be improving detection we new will Detection better think initiatives about I our think to intelligence. of pay an program, cancer the be in Breast artificial patients. excited Cancer that for outlined We're performed. outcomes standard particular in enormous our attention also, by earlier come screening have cancer breast And the impact on the which will mammography and that

contribute that, that think will the year. significantly next I So

I be number X.X As And year. mentioned, that will growing. we do a screening mammograms million

overtime, decrease as benefits well, In that our cost addition, but and some hopefully eliminate of the positions staffing of as staffing that -- are the labor we're that the increasing positions we'll in by agency. substantially well should we're temporary not labor filling, get reducing filling positions the

I revenue a year, will stay. we're to at our for are control sure. So That's well that here come wages from as but margins to opportunity of both significant think as next improve costs, looking better higher

Brian Tanquilut

gears, I share you us it shifting see Mark really works sounds detail program. guess I terms greater opportunity a guess and of interesting being? it Howard. like EBCD, on what how for or with there the you can Anything in

Dr. Howard Berger

our out by patients. with the in Brian, last program Delaware is very we Sure, pilot that reception rolled meeting week enthusiastic

them lot using very in service price the and attractive handouts what is will which terms a of believe to the are both to collateral we of we charging We this, be. We're point. educate website that a $XX value for patients our as give of

far, of we're in XX% XX% centers, patients having our for this And service. between so the and enrolled new

and So encouraged indicated the by survey of use a report by we numbers of Journal increase United of XX% Kingdom, imaging. out Radiology, the attracted which expect the buoyed artificial women, significantly. for them they those And that came of British of were intelligence we're the breast to further in did

imaging RadNet, from So on of suffer get but which one every at opportunity, a in industry women whole, only could we are will a life, detection, not technological tools its some time and a eight believe is have really this earlier out breast more as whole. the better to cancer -- as these for managing reaching in industry substantial to cancer, handle radiology there be the implications partners and their in a accurate far for RadNet,

Brian Tanquilut

that I question will And imaging if a key me, for here. Howard last lot up discussion about be And Alzheimer's part approval may. There's discussion. of a of drugs for obviously, coming

preparing potential if that gets thinking how and it curious that for opportunity approved? you're tailwind Just how you're about

Dr. Howard Berger

part these been we've number research Well, a fair of relationships. as already doing of our studies,

So are good we tools. think these

through they help procedures revenue. for impact pathways. new it's of define evaluating can it treatment many have as reimbursement, adopted think I a substantial on we will better initiatives that our have get that think, I one But

Another country, working gained of other we metastasis, enormous on and is for more one which amount do has than imaging in an PMSA which the prostate we're any acceptance. cancer operator

initially, need potential these both of is this monitored. carefully all believe these drugs are disease patients treatment side to there of Alzheimer it be some adopted, that effectiveness MRs the if effects which we regular that the will, determine need So well will the given extent as of all of as to

of of densely already do said, of doing with strategy be been being these and populated the So a could research large ready that as I drug -- we do particularly part RadNet offers to a I as for driver that markets, future believe many stand business in programs. us we've the that,

Operator

Ramgopal [Operator next take question & from Mitra our Instructions] with Sidoti We'll Company.

Mitra Ramgopal

you're as on as markets the thoughts in head a business is curious, its today structured the your into the side recession Howard volume next especially how in? we just likely year, resilient

Dr. Howard Berger

we people more as Well, that, of more care, I’ve say in outpatient there we the the some businesses don't well, generally factors. my drive there that from themselves insulated a payors been in are to health need already take as times. on is And recession is speaking, remarks, effort during besides to of because is continue. better But healthcare they fact, talked prepared part of a has seeing about recessionary a substantial expect what care -- in And, people they hospitals. away might relatively as from

of because all optimistic more so facilities, both point in better done think aging in for approach tools that increasing in rather volumes and than uniquely XXXX. population, outpatient pricing, to population, screening hospitals, a I our are So and

to part of I doing new payors and think payors entrants move business Walgreens healthcare CVS, they live that in the like people fourth health about And well will quarter. these that have taken expect close the the lot to program. almost And efforts Walmart here, of you've into as for as call that this. healthcare, more to we'll probably bringing away all a care, spend seen, as become our of from as even finally hospitals other root be primary where where delivery in on have may more time. involved And we and be a more shop and information more next aggressive

us So I volume is don't Mitra think a concern. for

how awful substantial the we about I for and us and learned an in that operations have we volume the had that benefit for experience controlled think margins which be to better keeping handling of lot XXXX improving XXXX. costs our our in manage after will even and

Mitra Ramgopal

based if growth slower have off that you Arizona, it the expansion comfortable there was anticipated, than the opportunities it on a expansion And market in you're with start the pretty appear to remember, now? I but and might would on that

Dr. Howard Berger

other in to that Health of also. announcements Arizona System, Phoenix Definitely, have about we hope we to in expand our the not area, other have reach the and markets efforts inside further some with only relationships but more Dignity in

So, one establishing than partners future. Health we of while wanted, our already the joint which for strong major from benefited relationship Dignity a will System, have with longer it we be took here certainly venture the

Mitra Ramgopal

at JV, you? as them, sort can how investments the opportunities, you in terms novo, growth of M&A, of in importance de you if And help Any you for it's opportunities a AI? those whether of prioritize the of look us in terms sense

Dr. Howard Berger

Well, side. UK-based opportunities that on at where I us, program made keep a the the acquiring I for focus on Health least majority into on the future for perhaps eye be that think template Heart&Lung teleradiology they're to you a might we all announcement expansion very position your or recent for good is could want

is the changes way in that in are of professional the One particular the of radiology going side to currently professional necessitate is fact the for ways on but fellowship only these demand the And and in out increasing that delivered. with need there that services the to that programs the shortage going are into about marketplace coming of too side also few talked non-professional of that our it. radiologist is of And we delivery further jobs offered. the being is labor not recognition component to industry, the the change are

I in think our great networks, represents for a to us teleradiology with the to state RadNet -- enhance this we've opportunity only deeper but for in particular, not get which opportunity made into will teleradiology, that current specialty teleradiology combine this our outcomes. else of by creating superior we our initiatives that the shortages own everybody large is But address in and experiencing and with of artificial intelligence some general radiologists create also, taking here. and base

as exciting mentioned any don't us they're to They're all things pursue. could priorities, opportunities prepared and the I've I priority. that greater in put remarks a of So if know my I incredibly all for

radiology of the more and leading imaging just really is outpatient RadNet center, XXXX. even being the side. to get controlling going both I'm using about by drive talk not this the in on expense we to on sure future deeper on into So technology as opportunities, the side but have process the to the further And we're into revenue

Mitra Ramgopal

to on the And on higher you I think then finally, I the mentioned, little, think, are here ahead, costs just a stay front. looking that -- labor following up looking

look novo to pause give might imaging this centers some wondering just you we're you as strategy point? more expand So de that adding and even your if at

Dr. Howard Berger

my And de in our centers, I don't mentioned demand us to doing the are I about already of it'll in novo is remarks really as for there. demand we these think have. capacity lot slow down because increase the remarks, from that, novo de that a

the better that of part payors our we things with experience are the challenges think I we're and for the and to need labor reimbursement. that have talking others costs about

think opportunity I improve to that on even reimbursement, the part of to these greater an So for the always company is that, conversations. a us effort while that's been have

kinds delivery is all incumbent of be -- it's increased has by as As everybody Everybody incredibly services essential needs that healthcare we're are upon of these costs borne keep in has to to RadNet be our is. into part to contributor as the and markets, take and just mentioned, it that to I an the it our the that understand of importance consideration. well and payors others that

having good our to very So these all and margins in we receptive keep of overnight, from offset very along terms there, improve have payor we're by trying success higher although in lines culminate our contracts. don't reimbursement of groups out those

Operator

call With I'd over additional no to our any to or the for back like queue, in turn remarks. speakers questions additional closing

Mark Stolper

an on be you appropriate a that for on services leader market your and employees, to for provides would with you, I all dedication work. I Management support, will and you sorry, Thank our and next our of forward its today operator. speaking with stakeholders. their and the investment RadNet continue the to to of and take like Thank look again employers shareholders endeavor RadNet of time for great continued return I'm -- all for their opportunity call. hard this that for thank matter, employers

Operator

today's That your We participation. appreciate will call. conclude

RadNet (RDNT) 9 Nov 222022 Q3 Earnings call transcript