RadNet (RDNT) 1 Mar 242023 Q4 Earnings call transcript

Good day, and welcome to the RadNet, Inc. Fourth Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Mark Stolper, Executive Vice President and Chief Financial Officer at RadNet. Please go ahead.

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

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

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

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

I'd the to now like Berger. call And over turn that, with Dr. to

quarter to call, this which Good Mark. fourth plan strategy. of and to performance future for will I highlights a full in and today's give interest remarks, morning. your participate you into the provide your our Mark us thank Thank dedicating to day factors year affected all our After prepared company you we insight open On more conference from results, this like you and call you joining our for with and our of XXXX morning, portion call to discuss I'd thank today. for you, questions. everyone, your and our in

software the on The Let's equipment, the investments and year's begin. result pleased strategy same-center X.X% on revenue I and quarterly procedural of of this of same-center increased of centers made new strong revenue Center existing quarter XX% in and quarter, solutions. same relative and the fourth a in RadNet's system year's in growth adjusted and last and both increased am We experienced imaging fourth newer volume fourth growth AI to expansion performance, a X.X% technologies health in quarter. Imaging focused performance partnerships in EBITDA very quarter. multi-pronged novo establishment was de aggregate performance trends with a The and driving records the X.X% strong last for adjusted continuation EBITDA. and of year's resulting and execution from segment industry

most all more towards has periods. remains Contributing operates. since hospital expensive challenging the ones cost-efficient Demand to to the performance ambulatory and virtually its while for market like shifted attract record robust RadNet services improved a for challenging still stabilized adjusted core be more outpatient and COVID RadNet's to as that post continues settings in was talent also EBITDA labor sites retain imaging markets.

under net leverage by ratio and sheet and managing balance the adjusted strengthening liquidity XXXX, million, over leverage. EBITDA. $XXX the on focus At Xx financial cash balance to year-end was RadNet's continue We was the

XX, outstanding, the industry. lowest and low historic believe we XX XXXX, sales was in at days RadNet's the Our DSOs, among December days,

important make collections novo expansion and operations ability de which We the to future of significant in area a investments of throughout strategy cycle revenue in XXXX, development. novo particularly improvement began de contributed the facility the in The in RadNet, has continued to XXXX.

of are in improve centers. or access dozen we a of in and backlogs about currently lack during capacity in in first where begin making patient we the are These access. these RadNet experiencing from these additional markets points financial centers service should de extraordinary contribution novo facilities identified developing in our facility locations benefiting to capacity our patient XXXX, patient We which are capital should we where new populations. located expect to require see investments openings which patients

health XX% been of ventures and system A has centers. in our initiatives. expanding of have second joint focus system currently XXX investment We venture XX joint area in over representing

centers We years. believe our continue to of X partnerships have system in half more within could than health that we

As seeking in include from venture, broadening significant contribution an center to an X September we the Group, both X expansion for additional joint establishing represents of as existing strategy Imaging relationship as called like increasingly System with of our a health Monica RadNet and centers viable long-term joint Medical an Cedars-Sinai attractive strategic direction diagnostic the example, for a Cedars-Sinai announced area, new thinking RadNet Group forward a and Cedars-Sinai Los are Angeles Los XXXX, and Santa systems of Imaging these entrepreneurial organizations. well in Angeles Health venture imaging,

establishment from operators and and expansion and the acquisitions The efficiencies and investment. Tuck-in of will capital, newer part of interest level other fragmented look the artificial imaging of diagnostic cost remains rates, care relationships. and reimbursement drive increased joining several we smaller and private more patient payers attractive RadNet of made ever. strategy that intelligence XXXX, joint unable Medicare an necessity we provide to health to of Furthermore, the venture can the technologies. with in and anticipate remain of industry and system new pressure RadNet's be also scale software are facilitated access ahead active the growth, than profitability, network today investments relationships rising the hardware, As

the have in that Texas announcement a New of assets we in centers Southern the California, of week, acquisitions York tuck-in seen and you the this several signed to Earlier completed purchase definitive the we Houston, XXXX, imaging Greater Delaware. Houston Houston In from first may X agreement is city fastest-growing some Imaging. represents marketplace RadNet entered most in second market, will have Houston area XXXX. the and geographical people the metropolitan million Medical area fourth metropolitan metropolitan X.X the encompassing populous The about since States. new United

and the network new Houston for years. HMI over its for approximately we stable in is for X RadNet. with market Imaging And Medical a used platform well-recognized members XXX team XX facilities, believe core grow has factor XX in been a a radiologists radiology to which over

of system the expansion which to of clinical novo bringing other health digital Greater area. confident We and means referring solutions health are our of partnerships de and opportunity further patients for and Houston include leading-edge AI acquisitions, operating the communities the build-outs, and

As our expand beyond, and we core in markets. continue outside further to we to will opportunities to move disciplined of have XXXX a evaluating approach

and pursue opportunities screening to on intelligence and invest enhanced radiology implementation continue the cancer The is We West detection, growth mammography artificial Coast. continuing EBCD software solutions. our service in breast of

March. out now in XX and Northern are and Arizona We program locations rolling fully mammography implemented California Central Southern the in and will approximately in California begin

Coast experiencing We as are East adoption higher initial West that report pleased the Coast our on are from we the experience. a learnings to result of rates

principal in in health agents program, check division X to solution the where continue and lung our lung country the expansion DeepHealth's partners targeted with United cancer providing is AI Kingdom rollout. work the screening We the the of

initiatives We expect revenue further these AI grow [ AI from similar business and grew program anticipated XX% other from stream in adoption XXXX will that ] revenue XXX% XXXX. intelligence believe RadNet's AI growth In this XXXX. continued is EBITDA see reach by our with continued adjusted We artificial to solutions. breakeven programs over of to year-end in segment and ADs during lung XXXX,

care. announced that degenerative of AI efficiently portfolio our a native is At transform AI disease of dramatically and health AI-powered radiology system, we that generates to clinical role leverages drive and development in delivery. XXXX, efficiency In the the of heart detection which care orchestrate cloud both OS the improves DeepHealth engagement offering to operating and designed patient informatics health

workflow during implementation current OS many expect the licensing early eRAD solutions commercialized that begin of and the OS external DeepHealth our be DeepHealth XXXX XXX is customers, RadNet that will customers the year-end. expectation incorporated beginning We begin the of could by including will into -- over into in internal tools The XXXX.

This segment brings turning X, segment before Digital would make throughout to our like OS combines into final last meeting's I AI which XXXX, clinical to of me we was reporting call In January the to businesses what financial press Health DeepHealth results announced eRAD and the the reporting software the release, back effective Mark. the point financial XXXX. RadNet current formation

different their level businesses focus expertise than core our financial that As eRAD of and we in profile software that recognized we separately, require increasingly quite of growing AI these center manage. have terms imaging businesses different to a have they and are been solutions our and and operational business

potential of customers businesses, of past OS able solutions health the businesses health for have solutions with RadNet, great year, impact managing an both these The Over and executive we of digital owner as to DeepHealth team their RadNet. course, these sell businesses. AI digital as which attract in this to of customer has outside a experience the and, the of of been financial

in The XXXX segment projected higher less can RadNet's Software is than in XX% Health of and grow over XXXX businesses require profitable to core to and SaaS-based models imaging and XXXX. in operate margin in approximately significantly segment at range investment. the be particular, center capital Digital XX%

our this performance over XXXX discuss will XXXX closing some of he highlights is I some the turn finished, full When I'd make fourth like well of as to Mark to remarks. the and discuss quarter At our to year time, guidance. as back call

levels, XXXX items. in quarter Howard. Thank of I certain financial some some to will believe year of as our review well metrics -- going our now I provide attempt further that insights I performance XXXX to full to explanation released this you, press and items and in be quarter material and the some into briefly should morning's year what also highlight were fourth statements full give our I'm fourth guidance drove I XXXX some say, release. also performance. financial will financial provide which night's as

as allocations subsidiaries term income depreciation operations quantitative our events In my compensation. equity adjusted and and and Adjusted earnings noncash EBITDA, is debt use net for the equity in of taxes, release. earnings which losses includes will full or noncontrolling disposal interest, or company financial on the earnings other of excludes is on in onetime loss place to Inc. A to common of and shareholders reconciliation adjusted during adjusted EBITDA in or extraordinary to included loss attributable income period. RadNet, interest defines unconsolidated adjusted and subtracts equipment, EBITDA is before noncash gains extinguishments and amortization I earnings discussion, non-GAAP or loss, measure. EBITDA the The a taking

to XXXX With that like results. and quarter said, I'd full now year our review fourth

the million. XXXX, EBITDA For quarter. quarter $X.X and revenue Center reported $X.X million reporting of revenue $XXX.X fourth during of million of excludes This AI RadNet adjusted EBITDA $XX.X and adjusted its of segment of losses AI million the Imaging from

last compared $XX.X increased fourth revenue segment XX%. adjusted year's million X.X% or As increased quarter, with Imaging or $X.X Center the and EBITDA million

quarter million fourth Including million fourth the in our quarter million million $XX.X of quarter. the EBITDA in XXXX, fourth segment quarter fourth revenue adjusted fourth X.X% XXXX, in in quarter XXXX. the million the the total $X.X of of million the losses growth Including segment, company $XXX.X and XXXX $XX.X of EBITDA in the of $XXX.X was XX%. of reporting fourth reporting $X.X adjusted XXXX And and AI a AI total rate of company in was last year's increase and of from of an quarter

and exams, as volume, quarter, taking and quarter XX.X% increased fourth imaging routine fourth account MRI of of CT MRI taking the XX.X% over only prior a increased into PET/CT XX.X%, the increased X.X% volume prior same PET/CT of increased exams, quarter. increased quarters the volume For XXXX, over were X.X% and CT other exams ultrasound, compared fourth Overall account mammography x-ray, centers volume, with quarter. Overall for volume XX.X%. imaging all volume On XXXX RadNet basis, inclusive volume X.X% prior year's routine increased same-center XXXX increased XX.X%. including both volume year's which of into the all and those same-center and year increased fourth part the

the XXXX, with quarter a segment compared was from adjusted $XX.X was onetime for of items of the XXXX $X.XX during XXXX. the earnings impacting fourth or earnings diluted fourth adjusted per Center and during Imaging million of number Adjusting reporting quarter share $X.XX of quarter fourth the unusual as

the interest follows: to to calculating were The connection swaps, savings $X.X rate under novo reductions leases initiatives; for million $XXX,XXX acquisition as AI loss operations, of de paid AI unusual XXXX in of impacting in with $XXX,XXX for a the DeepHealth the generative million have related $XXX,XXX transaction noncapitalized quarter cost our earnings of or costs, noncash their investments loss and lease expenses yet of valuation related that acquisitions, $X onetime consideration open $X.X of abandonment related cloud-based facilities related headcount research on fourth million from to and of to excluded gain adjustment contingent reporting to million severance losses $XXX,XXX from segment. a $X.X items solutions, pretax and development construction in OS adjusted of

net share compared for basis for unadjusted RadNet XXXX, fourth the million the the an for of share shares quarter a loss XXXX, quarter XXXX. weighted of upon loss average of $X.X the outstanding 'XX a reported of shares of in diluted of per fourth with quarter XXXX. of in based On million compared of per XXXX shares net and loss $X.XX Net $XXX,XXX $X.XX negative fourth negative was XX.X as million number quarter a in fourth loss XX of a with net unadjusted

interest With interest interest quarter payments for for the quarter deferred in relative GAAP in $X.X of expense $XX.X quarter XXXX The of million. in of year's in overall our specific with with GAAP last loan, of income term interest during million. and the fourth counterparties XXXX elections This this SOFR period, cash a was the for was and statement compares paid the expense function which interest from Cash lower fourth to quarter $XX.X as paid $X.X million accounts, timing fourth on fourth noncash of accrued was to of higher excludes year's year. compared fourth quarter. our regards swap last fourth quarter million to rates the despite XXXX financing expense, of interest some the

losses reported For EBITDA reporting with XXXX. $XXX.X million. billion increased and year adjusted full segment compared million revenue AI we excluding XXXX, or of as adjusted XX.X% our and $X.XXX $XXX.X Imaging or XX.X% Center of EBITDA, $XX.X XXXX, from revenue reporting segment the from million In increased

points XX.X% EBITDA XXXX, basis segment margin. increase of for XX.X%, XX margin the from Center an a which EBITDA was For adjusted adjusted XXXX, Imaging had

Including segment, million, an Including year from adjusted XX% total our EBITDA AI with XX.X%. revenue in million $XXX.X XXXX, segment an revenue was increase Total of for full AI of was $X.XXX $XX.X $X company company for from in company losses million. the increase total $XX.X billion adjusted XXXX, XXXX. $XXX.X billion of $XX compared of EBITDA XXXX million as million

as XXXX X.X% other year the into increased XX.X%, volume volume exams, XX account volume volume December Overall increased For x-ray, XX.X%. inclusive and MRI XX, of increased increased mammography taking XX.X% XXXX. ultrasound, PET/CT imaging months CT ended XXXX, all exams for XXXX, compared the of and with routine over

full income XXXX number million, $X million decrease $X.X $X.XX income for share $XX.X For share to reported a net weighted Per the based diluted was in $X.XX approximately income per compared diluted net a XXXX, of XXXX. net over of outstanding XXXX million year in XXXX. in diluted upon of of and of average million $XX.X shares RadNet a of XXXX

as swaps interest to regards of cash interest Adjusting rate interest earned such cash for million expense accounts, XXXX and some interest specific our the With accrued items on interest interest overall cash financing in balance, on counterparties swap from from net and statement income deferred $XX.X and to payments and XXXX. was impacts fees, was net -- of million. $XX.X amortization expense GAAP in

had debt for par sheet, at New discounts, debt that's With is a term unadjusted as and balance value, balance. we debt, is December this Note bond of nor total includes which Network's Imaging neither XX, million $XXX.X regards percentage our RadNet that net loan balance of to debt $XX.X our which RadNet's of ownership our Jersey for cash guarantor. net of million borrower a XXXX,

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

accounts revenue December was of cycle of XX all-time our This $X.X XXXX. a from days improved and XXXX, up December from collections performance was despite balance low. to At result being year-end during the decrease days XX.X at our revenue XXXX, $XXX.X which December XX, million, These efforts XX, to XXXX improved DSO our is receivable decrease caused at XX% XX, and efforts. XXXX, million

and of $X XXXX amount a were to under the the vendor. of note Throughout of XXXX, of Jersey we a sale XXXX than million expenditures purchase a operational as million certain expenditures excludes budgeted of of on or had capital net and in total promissory became software and capital leases of venture of assets $XXX of million. higher Network asset million intellectual expenditures imaging towards the equipment we end onetime operational This expected a from a facilities previously center within dispositions joint purchase leased originally de that of Imaging interest other Capital New and construction $XX.X operating novo property result become XXXX. $XX.X

have made may discussed operating changing are seen close, you Berger financial of we as his segments. night fiscal some Dr. and financial by press starting in and in earlier we remarks, market the release As our with results XXXX, our reporting after last

our software segment, eRAD digital XXXX. part artificial health XXXX. health businesses of center were quarter to now segment businesses financial intelligence first segment that our imaging the with And and a throughout reported be Specifically, the as will starting reportable form related combined informatics new with of

XXXX operating of businesses the $XX.X $XX.X earned highly business embedded million adjusted segment of informatics had million These produced within of million EBITDA. and Imaging and were eRAD in expenses revenue, profitable. The Center $XX.X

financial press the results X night's segments, our Center For operating Health be and presented release, the Digital operating the segment guidance purpose segment Imaging of our the new to XXXX. existed segment of XXXX as if evaluating meaning X, January we understanding XXXX last as and restated and

call, not points. I'm going on will While some through run to numbers the all important I this emphasize

First, growth segment, X.X%, imaging XX.X% on in we XXXX Imaging anticipating XXXX are XX.X%. center be much revenue Center growth to the from as and we expect the in core be EBITDA adjusted as to segment to

While we what to in continue to less approximately we amount elevated be in spent expenditures anticipated is make capital XX% aggregate XXXX. XX% than the to XXXX,

approximately expecting flow segment Imaging also to in XXXX. are Center free We in the cash double

and we and revenue digital Breast new both adjusted between of the The Detection from of between majority growth the growth XX%. are in reportable of health segment, continued XX% EBITDA growth is anticipated and anticipating On or the lung XXXX standpoint. EBCD revenue XX% in and Cancer to from XX% portion XX% EBITDA of licensing our particularly grow by is an and business implementation XXXX our The reach breakeven and prostate over Europe. is anticipated to AI projected from year-end adjusted businesses by digital AI Enhanced health

Finally, verification generative guidance investment in development efficiency both increase substantial customers the future cloud-based that areas the will are in making of We Health development core our the patient revenue current OS AI center system investment research our and of segment of dividends scheduling, and believe for Digital the we costs our in and lower could outside pay and operating and and preauthorization, modules insurance reflects DeepHealth cycle. business imaging our this RadNet. the

closing Berger, call like to to turn over remarks. I'd make now who back Dr. some the will

you, Thank Mark.

cost. centers system reasons and unsustainable strong. are increasingly from and XXXX, prices patient As volumes to healthy our and care Procedural health to operations away to that moving remain about enthusiastic growing. Payers future. The imaging demand core are hospital-based are in we procedural and our imaging have attempting volumes patients manage a business that charge look we is to

medical diagnostic continues overall the place, grow, part drives shift In indications for the ordering in advances driven by procedures. of which technology, imaging taking addition to in site more care industry to

growing aging continues is these and see nonbasic [indiscernible] and cost population All sectors effective. preventive see the to continue patient [indiscernible]. to Additionally, and

have do growth capital the as of in capacity significantly in This both is success risen compared where scale best modestly ideally dynamic resources of liquidity a in the virtually and have organic In or all with marketplace. RadNet and leveraged the positioned has where more for and period flexibility. the we pursue cost inorganic a this opportunities industry. and long-term not remain our period us time to operators financial position growth places other others many in capital

can created stakeholders important RadNet sets. of initiative formation the the scale our by care most RadNet report, will intelligence artificial of But family data position. digital RadNet operations of this Health A large perhaps the these better components will of essential several of future existence. AI Digital decades lead on is over the recognize both has to division successful newly health driven component be and The access way. this and services. aspect the relies accumulated of success substantially the of and of growth to health The allow radiology

RadNet. feel been than what never have we to are on throughout that history the the We time We our today progress. we if multifaceted execute other created. rest we better our positioned strategy we look of conclusion, than ahead about stakeholders any In forward more are XXXX in updating excited to as today lies for our on have

the for are we of portion now call. the ready Operator, question-and-answer

from [Operator comes Tanquilut The Jefferies. first question with today Instructions] Brian

a outlook on like strength a pretty in year. Howard, first. I'll you're quarter and volumes. for ask continued looks solid Congrats volumes expecting have you solid XXXX Obviously, Maybe the been strong and

anything ones us a your terms seeing versus volume from in from you're performance And as if store with a or maybe then and non-JV the you there's between of perspective what there. same share curious JV can Just centers differentiation the well?

thank you. Brian,

answer in X Let me to try parts. this

part second is is into by of backlogs of we have volume continued all that still do XXXX that is challenge demand. and that, labor. while have the ability and capacity for XXXX, continuing markets. to that the that created. that all does we concerned, it Part As Part compromise And and overall of us by it turnaround far of the for in access improved I we've the as virtually driven believe our driven of significant has began is perhaps

this, seen to that technologists we're we ago. both and the shortage programs provide that well may by other nonprofit continue called weeks the overcome personnel. as the acquisition that announcement be tools employing administrative But here will to with talent help we're collaborative support we California a using with in organization JVS of announced Part to about of feel with that have the have you dealt aggressive we that Southern this X educational venture as through issue

will on solutions, to expect So RadNet initiative be to be say I will of an generative the centers also half AI which health XXXX of development this our part -- of part. our this portion is, the ongoing OS we of year. second in the should second by that the attended deep that the problem begin implementing the half in in calendar

wholly In centers. regards between or volumes, will Brian, to the a that venture and if you difference joint centers differential is owned

One has that a of health under are we even when local the joint profitability to for or we hospitals of that better into that are delivery have for shift we is percentage bullish and us. from combine increase competitors centers, the seen nature and for venture the which looking aggressive physician of enrolling centers as talents of the reason well very the services, incorporating their or reasons as driven our systems RadNet them

If as to have into in I that mind all we're to operational think soon having XXX as drivers. centers volume ventures possible, be it well addition were because going efficiencies I to joint wouldn't

discussions better the more have also We payers robust for discussions reimbursement. with or

years to a health X is is of which success I the overall think very and contributors company's appropriate as portion under ago current as which care in be the that think, business, aggressively of to we one I we our well So place in pursue marketplace major for started the circumstances. more us economic think

decision deviation and from Howard. So little coasts, is thought as a that there? curious so of then enter Obviously, market the question, legacy your and it strategy a you on to in that, appreciate my second obviously process ventures, about your was about Houston the think sort maybe Because deep like what I maybe And right? joint of price -- part you attracted as market right? I bit Houston strategy then the said. plan, what your of the And you being even the expansion just

your just about roll the I'm the market? how So into you're model RadNet curious out thinking of Houston

in whether we talked Brian, don't the markets might the into. motivated that currently necessarily a we that look Well, sellers to past, for whether and those as or looking I've doors. goes We're on grow a strategy they're and development looking we're team an business in about and situation knocking remarks sellers that are both mentioned in that want well in operator a markets have technologies. for about to exit in the was where access capital a larger as and roll of had scale This been his for to didn't into as stability number reasons Mark operation, up the new

already the felt if opportunities When best of this landscape operator and looked had approached other were that us, he we clearly at of breed, you will.

marketplace. other had him the marketplaces. issues Houston major as some less of one experiencing of with an in marketplace. regulatory perhaps And that we major metropolitan And perhaps So over used the drivers to active the our assess little we've size last several months, is negotiation the the we're a of

the to be were a friendly just looking more we tends Houston be Houston, or particular entry a for tend And marketplace. attractive right in to Texas, So more point.

never the company. and a that we in professional past, recognized one a We had to very group history operations in well felt This market opportunities and successful desire the expand. was good of but that operator a platform has growth,

The that later we buy about We assessing year. is like hear in more other use from that you'll as a and us talk build. we're this not I and are expression a working opportunities in buy we to think that later which marketplace, or and hold

we place good our of a raise Houston to lot and market next marketplace. flag, we that given market market, are other the in growth strategy. want having And size of and markets our RadNet and that core expectations where the a high we part was go any people a capacity, lot into, a the look new to for of in there's felt not that as problems given So similar marketplace, of it demand demographics the we have population the of for

comes The next with from question SunTrust. David MacDonald

Congratulations.

benefits coming couple you guys ongoing backlog a wondering, technology questions. minute to some in opportunity driven just have And side? additional around capacity capacity question. some One, the talking terms you is the up Brian's of that scan of volume equipment new made et times, investments further of can the kind I pressure to of that's on spend was of the a quick alleviate cetera? Just capacity, of around freeing back about there kind shorter

of very of have been scan MRI of to MRI facility kind XX. We've particularly is made as have as MRI is XX and years absolutely. the to don't now has to little comes you time when the costly it software XX site down to less in successful scan total a the where system scanning, of minutes implementation in, times in of that new another it kind to and shorter invest test The will can to relatively investment technology, the on times of reduce a an David, theory down which XX software from equipment. certain scan we Buying than buy obviously exams. number further, down and to this which which minutes the hour perhaps over is control, to history expensive to operational both investments continue remote reduced

we're I the seeing second that one had that of benefits in believe in is the increased volume we the particularly of year. So half the XXXX, that from

amortize ultrasound operation related several of technologists and to is mammography, have even perhaps part will and serial initiative scanners. scanning, investment we expand This we for and of can in to every a MR at for health it the believe we can though, where systems division the of CT be necessarily X control of now incur these piece this for cost tools into we're not technology of can over the which internally the looking have to all be the to that and ability our we remote our some be of one, Another have equipment. develop that digital

us this again Supertex think will the can the then only, of had not what us technologists. centers these -- scan ads for shortage licensed not it And call and centers, ] that overseeing in success of also year technologists I our tech more the necessarily of personnel, So at believe, address fully us I with the time efficiencies, help and allow we'll particularly to but have roll-off we XXXX individual half this. [ we help that with with the second

creativity So financial be but something of that of aspect we've I in the we capable can't well given, been of we're at, our technology side the investment underestimated. the think land as that about liquidity both because business is as this talking good be that of the part of now making which think,

stakeholders to I talking think artificial highly all for itself, is that whether our business it's about the or recognize very of driven. we're equipment intelligence our important technologically

capacity inure And new the all of adding procedures, of to tools the costs. of can benefit the terms our let technology use ultimately that will to and overall both work lowering do we performance, in

we have and So I data the think these where there's at to tools developing sell thesis we scale a is are them. given multifaceted than that so our approach tools can investment that internally. nobody these not have we developing But we the better we're that just

then reaction, market. other conversations, early, systems reactions a I'm et I'm in guess kind curious, any Look, X realize comments or that mean gotten And There's of Just general any, incomings but it's just ton I the any if Houston it's of a questions. market. within curious quick in terms I just there. hospital that extremely I huge the just you've opportunities, initial And of cetera? market.

haven't signed had transaction. it's I as much we a yet, Well, agreement. very closed Dave, and We've don't we've think because on, reaction the early definitive

indications to may as operators the about into us expect transaction the now are well not other excited identified have close month are bigger next But the people perhaps with bring as into we desirability are marketplace to early coming tools consolidating assist that that that some April. We operator. in a of

So operations have hospitals the because there's after Texas hear we'll in and marketplace. in from the we of right we ventures the that expect have some a that marketplace on some hospital of are systems national joint with discussions too, scale now, that

only reaction, market signal look So that areas in that a you effect, and we're think be. no for I ready not business matter will, will in where ripple other we maybe this at Texas, will that wanted might win-win opportunities but a open that be if have to to

if you disproportionate think to to And opportunity Okay. or one. Alzheimer's terms when are should ramp? just as either that we ramp in then point? And that more is begun patients service starts have I'm you and servicing there last of curious, any meaningfully, governors this anything at about starts or opportunities volume to

Yes.

went PET/CT question, here. has that particular, systems, the process credentialing We and have Another we Dave. good the the the the in scanners, MR recently scanners appropriate protocols certain and through just that making

requests had be for we procedures have either the So questions XXX this. that in the come on far, in will the of we or books And or forming. performed these come daily

for expect significant be the we move so significant a We if any that through company cancer, in to be XXXX. make And success comparison opportunity in PET/CT in should but for this. as scanning prostate more this achieved we probably XXXX, we've contributor a the to it

the for therapy. be have X currently doing patient that want equipment the a going MRI Alzheimer's And PET/MR also emphasize adhering of candidate either doing. of drugs the for PET/CT any to some of brain requirement which scanning as scans demonstrated any we're the minimum is think, side that I the protocol drug assess MRI the but or to to it's I these of Alzheimer's kind a which done would it's there just be currently capable on that scan to that will follow-on itself, effects, new identified not is be, for that also with of disease been they're

issues. why we to on And capacity the have ripple reason it's be very this be another quite focused So of substantial. could effect

part percentage it our our Yes. because X.X% does And pretty business but the it's of of small of of it's is company, volume, X% PET/CT between exciting, volume, albeit our Dave, our and fastest-growing a it mostly the scanning roughly prostate over X% mostly to already our XX.X% has full revenue. opportunity. PSMA in that XX.X%. the the It's from year grew from grew the 'XX, fourth not from Alzheimer's quarter 'XX That's overall it And been exploding. represent

to scanned And to we've having on the scanned in been those think so And opportunity, XXX patients Alzheimer's layer which top has the by but if we big X amyloid is last 'XX, growth so. certainly PET/CT get driver as this going potentially get patients in these coming that studies, already fruition, 'XX. all we beyond you to patients. XXX-plus way, this is these a qualified months think be or

Raymond John with next The from question comes James. Ransom

Congrats, guys.

So your to the fired Mark, to going you ready math I'm of your HPXXC up, all question go. with challenge got

that but John. have has his pen, doesn't he He

front advocate me. an in have I of

funny. That's

the if EBITDA much then how that then if rate of the year about that novos 'XX, much So question, I'm and higher off and novos rate the how and is from run acquisitions on is run in 'XX? exist think of to full about 'XX, think layering in your we the that de EBITDA year? end you to into did for that acquisitions jumping And going of kind versus not de on the of 'XX? the So over for of thinking 'XX 'XX kind point it call about

small year a deal Valley -- the that We this in small. very Houston remaining earlier in contribution. because With to acquisition The it's was closing announced, of included did we Sure. from California. year in We this transaction. included Antelope the acquisitions, respect period already

the $XXX our million So $XX the million year, acquisitions. to in $XXX in contribution of than next number for our less EBITDA terms is million

exactly centers that me, of but million probably -- is just opened due With million. the in would my me, novos that is center at recollection the to of I de novo that $X here. something in de don't front the in to of in respect to got we look facilities, I've have of front I same $X say range a another that XXXX up outside are report number

million, of centers million million of to $XX from as to So acquisitions ramping. I coming closer mentioned EBITDA as the well, is between those X, are I of million novo $XXX de million contribution the to would $XXX probably our $XX say, between $XX those that

AI question 'XX? the breakeven? What my EBITDA that year? exit if that we plus to exit rate the look 'XX, are in And is, other terms what's EBITDA So full think of AI, rate the as of bridging eRAD of about we you to what's versus contemplating at gets if

Yes.

to I we be quarter. I'd $XX year million look to a that revenue the is closer million ramp $XX There's I you'd higher gut the let's we year, have of here EBCD, $XX and in for you if which the X $XX a say quarter budget be might revenue projected fourth front to don't exiting divided say, doing by the -- say, be So -- closer would to just by just -- if the I'm we'd quarters, that's due $XX the million. million, of have thinking that be million feel. in going me. quarter, a probably you

a being AI loss quarter kind in And of fourth breakeven today? the from

on AI basis by EBITDA being breakeven the an fourth quarter.

Yes.

Okay.

lift. And AI it's future? a that's you Markadamus, the Or get your AI in could expense an foreseeable the -- player you participation you costs? meaningful when would be for lastly, So do then if you covering think first out-of-pocket say

could as AI part in at time, had not it or the payers, John, able a and a X and basis of a commercial get when doing may false to they rate we've that there's the additional in that is there detection payback mount that intellectually it the expense what continues to once cancer the on I predict, with payers believe reimburse callback private that significant same to to comfortable the part we're on their hesitation years think with I don't when happen, pressure the adoption themselves I see year rate will take Unfortunately, enough positives. pay another for is. been always reduce conversations will likely to that improvement to this demonstrate that may that of the incur we've is the long what on X be

by need going this to pay is started so for to the the probably just the and significant how a bit the treatment years you actually reduced a have, reducing can care when false to that but more it's we've the compelling cancer reduce is that I health last by collect make we're or number treatment you from reduce really a data really to X.X it kind little about enough that to detecting given argument how But a matter cancer year, we detected, of of accumulate that of positives isn't just time, earlier commercializing year this cost say which that -- system. another

Health don't on for has similar breast seeing of enthusiastic history getting could annual that of I but cancer, patients our now, screening. reimbursable been cancer benefits anything we're because Service there's their the wish this made part focused in be I So U.K. cancer. National in now Right for earlier at I all providers we're with the detection with think a business, exciting program primarily lung risk than in more there. for my in more the it

that a So I think marketplace, there working need other amount needs actively now group to to payers which certain into and are built be we get wider momentum on right and the tools of we regulators. for introduce the to a attention this of up of

[ Taylor ] Gary with from comes question next The JPMorgan.

is a but JPMorgan of just now. it's actually, Well, bit Cowen TD couple stale, nevertheless, little a questions.

CapEx about of that little it, routine is, development that on the kind to $XXX bit, First, but half than would call maintenance is maybe talked way right Center is be million the half, for little Imaging more de and of $XXX million million. guide novos? a of Mark, a we've other the CapEx think really $XX

of not That's on our and de centers, 'XX development in lot and of money, novo of as is financials. than And centers been stages growth contributed going a XXXX. these you Gary. we've got dozen spending in That more materially spend here ramp various as and centers a CapEx which into construction. on those too of novo still bleed haven't to the far 'XX to saw de We've Yes. off, still

is that XXXX pretty our of close in actual. terms here budget of in XX-XX to So CapEx

lot a go-to-market strategy thinking these little technology big folks different developer, how or breast just sort own centers versus talk would given advantaged players compete about a like of operator in you're somewhat that you're kind your would -- other by company second of about and in game. one, the a just you'll of operator, particular, to trying solutions? outside around then competitors think are of own have not about theory, of so that AI, And bit, that I just thinking role you're be an an developed that cancer and with your In AI how just as your you market, my get Could also diagnosis AI forth. number

a developer who for bears system are payors into artificial Yes. now. of stream. for intelligence provider, to is that of if put a I will, or down That's every something adoption that the I nobody a going think at revenue they with it's what good whether the out part it's outpatient question, right problem, don't necessarily some meaningful see whether almost to you And hospital there a fact an value wants slow has pay question of slowed who's good Gary. is The And the think it. I least tools that money think proposition out that very the AI is cost one

development. have a is to on what to but spend private AI higher for venture the venture interest beginning and the need capital, return having from also capital there's limitations I and on willing visible rates attracting going therefore, the of reasons. here. have difficulty space Number revenue lot in demonstrate of been and to the new most to expect unable X one, consolidation a I AI for as more said, are, be equity investment more companies some on they're companies

for to So or target that us been distributor we us. already see acquisition potentially being some either a think come has we'll have about to an talk groups for there and that them

more And our OS seamless offer products and up to platform, internally want take part which because and them us centers at our now. exists to to it's is of this way a DeepHealth platform customers on the put our to of for other ability externally the or and part distributor own the right them whether emphasize far is to than other AI I

even but have. scale much, be and So may a that an it we you're this we basis case individual value though create right in can that of that I on for ourselves lot develop think not given the

million and electing the over they X.X now, cancer growing. Right For year women $XX screening pay have we in -- the of that to solution probably screening to breast of all example, of mammography in X/X, closer a area, AI excess getting do are mammograms for. our XX% the

it almost you if by do revenue almost than product. radiology generates RadNet other more math, for So AI that any itself

So as the drive I scale future. indicated data and here, operations in going to opportunities remarks in are sets AI my what's for of

all confronted is be of to important deal that part going gravitate to marketplace are with as of what that about it imaging an both intrinsic the to, if health to it, be now. RadNet future to in all the it's were But make going we're going care, other to of capacity no have and well much costs the and the providers mistake -- expect issues very some compete and confronted they with as future

Gary, operator training test your advantage we're a XX as be we an directly these north million selling for algorithms already that growing comfortable images our bed the And year, to is which And digital in given installed XXX makes in that we technology Berger who is is RadNet's external in development a algorithms. and base algorithms, customers data current growing and effectively. much huge our question deploy a have centers, of now about these and and there's developing secondly, solutions and potential the number can we advantage of XXX these own million already using our size, by of -- terms more an set, our Dr. then mentioned them which

Dr. there's selling third-party being is think and these solutions time start solutions going such where to that's Berger commercial from advantage a to I huge mentioned reimbursement which once at externally that, these And ubiquitous, payers. once, as other more occur

there joint a areas, perhaps to may hospital potential the parts want the where create with We that that outpatient, ability in other for one, that partners. other will number systems seamless help but marketplace which venture, other to their a that developing. enough venture built-in most tools point other systems venture will them, we I be or in are will not do overestimate kind interval flow the our I have can't efficiencies of joint with little and states one our data be of hospitals want And for a make. of might If partner joint costs. inpatient ourselves that not That have to in part hospital these reduce of use between of and we're

have can't I number, more health now, we systems large right remember XX or So probably that are... different the

We have JVs. XX

but... Yes,

locations. Encompassing XXX

that they But have systems, those hospitals were other not hospital with. necessarily JV

use there tools, our not entire outpatient So and unify to there's platform a pretty we'll very radiology basis. audience help big marketplace inpatient that an their only on a out but where have want to receptive will potentially

The next Solow Securities. CJS with comes question from Larry

kind targeting, net also congrats is revenue Mark, Great. of of to acquisitions, procedure average think, is growth not year? you first on guess same-store you're view if finish I'll versus for above reaching do you think targeting the How question I to X% price, X.X% we're good at in growth? that think realize I What revenue couple year. just procedural mentioned how this does of segment all view percent X%, volume actually up price of I growth we kind solid that about in How but last to per that growth, overall a a growth X% do from you -- that or in. look XXXX was look inflection year, you really volume whatever X.X% that year X%. annual is point, an maybe Imaging are a that go growth we but X%. target price? me, of overall quarter, saying on sort is also that Because last if I I sort in every X% the X% pursue to

look So how X do components you kind as year? this you those view out of for

Sure.

making investments continue better efficient typically, the you basis. told single in and more comp digits long how that to over harder, on are. able same-center busy been into lot and in low capital of on kind your basis. we Obviously, that investments the on could centers sort digits in So of throughput the the a the get at But we be our becomes centers a to our we've front, same-center a to mid-single to to term, drive felt of the we've volume low grow procedure stakeholders technology

on allow scanners allows weekends our those the labor and out And that Berger open of for investments these are and and bunch a so times, about done Dr. that centers up of coverage from MRI centers and shorter in get and clinical a technologists, with better in remote check-ins scanning get which at to talked to nights on things protocols perspective, so forth. more to we've quickly and our digital patients try us

So of embedded plus in next year's guidance growth.

in assuming single-digit even -- the of you X%, north that of performance. are mid, which if We than better performance, same-center throughout sales our low did year, we were we XXXX, X% look same-store at terms in

the that XXXX. And then going either the -- XXXX other in weren't to centers calculation that opened purchased same rest weren't are of were from of the it or contributions center

Yes, we that. can So better absolutely. is possible I it think than that do

more benefits about. outpatient seeing lot Given these CT, in and flow are which that all ambulatory imaging, PET of more of the imaging, that are trends a some Alzheimer's the of PSMA test the the hospitals about the like inpatient and technology, modalities like talked the patient towards industry more out we talked in expensive that driving tailwinds we that advances certain of we're and imaging in

of robust potential same-center a So for to contributing here those I all more things than historical are us. think

So how we'll of year the see kind unfolds.

modalities. pressures? was price as But there. of just still the more obviously, are mix inflationary offset on for headwind these a I average you some actual you year side, procedure actually bit pricing, getting the little the a just guys per full But -- X%-ish. realize side is government at the of terms to look And that higher a than price I up in are And commercial just Okay. on of that

are. me we talk for about to Thanks reminding Yes, price.

million the specific As result schedule to builds commercial small Anybody book under to the with you is us, the $X pricing that's regardless the hit. radiology. Medicare increases headwind specialty schedule, a schedule from $X business dwarfed being for X.X%, a fee by from physician that of facing not headwind. we we're But that of facing is fee of of getting a the And the million physician our are and pricing our capitated about payers. that of by who not that's that's as Medicare Medicare lowering factor mentioned, fee conversion and

utilization, still so forth. of because contracts, the and managing aging In and we're effective of utilization population every and our although capitation goes benefits diagnostic of on in so imaging up very the all year technology

And we so goes pricing as contracts. up, get in that these escalators utilization

that each year. benefit we So from

then in that And charging on between to this payers. we're trying front, the centers. the of most our payers this and inpatient markets, freestanding our into the say charging that hospitals work our out hospitals prices expensive And -- are are more anywhere of commercial Xx the for Xx and business the move the partners business are shift recognizing I that the their would in more we

this beneficial more to of site points they're to that getting a paying shifting it's type RadNet recognize business concerned payers work. the far to X%, and the more do of this them to or less So couple X% -- of about care,

couple of try and got plus staff around Because representatives call go of and a physician marketing purpose life and get of business out to hospital. we've a centers hundred to our to practices in is on this into

year our this our increases, a in into impact And benefited that got year. So effect number going in we've of which will pricing we us increases revenue results. XXXX experience did last pricing XXXX positively

just test. I more squeeze breast the enhanced testing if on Great. could one in cancer And just

expect a increase improve continue the XXs XX-ish of that year. exact Coast, is that similar the number was year low or the Do I penetrated And the and sort you in number adoption more your I West Coast Curious, the Coast that well? as to been and from as know to it marketing efforts last mentioned, you think I you during East well. increased East growth as somewhere think just centers -- learn on start range? in has

Yes.

completed Southern on are Coast, obviously, than and is more of rolling Coast. we California rate We've got roll quarter to the started the the EBCD in XX we're Arizona. more in we adoption the program. and EBCD centers. the in California. We've West are mature, last year, by East rollout centers in completed close to out more got XX% here So Coast mammo about and which approaching in West Southern XX These We centers fourth are the in more in way, California California Northern -- Central out the obviously

adoption the rates than Coast. West on on And what the seen we we has West is seeing initial intended. But bit Coast much rollout what been little a and slower originally are higher the

more there's differences adoption in in many we we're effective patients, physicians. Coast to took lot communicating level. that to Our East much get the many, the West population. And those just why the the successful a East learnings currently West of referring Coast more that to patient we the rates we're on to program at from learned and took It's so much Coast being isn't XX%. the months the and Coast It over that part are rollout,

when we in-market which the rate. then a $XX adoption We've resistance West Coast, and level more were price, price East originally in here off some created of with done at started marketing started we on Coast. the the we on $XX And the

we're roll and revenue guidance. our $XX think our XXXX. is we in words, fairly as other In by somewhere to the million in go out to which embedded low this program I continue close into XXXX, that EBCD bullish recognized XXs the So in in division the program, AI was should

about talking XX%-ish we're within program So digital that in segment growth our health in XXXX. just

But about is -- before Howard to might your your network take you too kind of outside it early you curious, coverage. a this it centers gotten actually or outside have mentioned just think years I'm test? interest And of of get couple from for

that interestingly Well, enough, I interest, our have may people some think from but where it we coming do self-insure. be

Health program venture benefit And System, groups, System, rolling is out to Jersey, be Barnabas believe, the to hospital joint Health it's they a our Barnabas X. RWJ employees they're the extending so now fact, this And New for, going as EBCD paying and I of least in are at in X dependents. the April that their

So similar... we have

They employees. have their For employees. about XX,XXX

And dependents, right.

example, their paying happens Shield the they And adoption going entity, for may procedures in New third-party I of Jersey an on by actually Horizon of be one as commercial part to marketing the a before because different these think RWJ But to the if program. this Jersey, other the TPA, -- we're may essentially going so follow New and Blue from the Barnabas see be the administrator to Cross form are be payers. I the use -- benefit as

them, it the a beneficial the how approach this may use be Horizon to see they to is, meaning larger of of easier sell Once this. evidence market on more

So a in one-off do just all of tools in unique of the a in we're markets particular way by we have the kind because are kind provider of and are market. conversations of to think we any these that concentrated being not I that position can

Angelo The next Ed question with Kressler Gordon. comes from

that will for your we in Congrats And and pivot of on JVs equity in Can forma it. derived on context M&A, balance as steps your offering. down? pro you're you effect what of to you terms thinking de level down of And more regarding the kind discussed time some of about us. just then the next you novo Appreciate of to some kind Houston possible you the cash leverage the taking there? we talk thanks to strategy, that as and about obviously, always spend you activity leverage? Or area? the Can density comfort that the that from sheet speak spending funding acquisition your given should great time quarter and be to in regional year here discuss how

Ed. Thanks, Sure.

more paydown. did And remember, did potential in we million we a you down all we year, at we of about of accretive $XX of million because very we on cash. some our million of proceeds. of that the we the raised that that we had that million, hold did if year, then net $XXX million opportunities the when in where $XXX shareholders, We debt that proceeds about were to June that, communicated So for other stakeholders X last of of our that raise equity for use to of $XXX earmarked last back October pay of thought and cash $XXX wanted time we

we our of in in paid When in that in we $XX raised year we about and be other proceeds last you'll mind, deal we that in There's -- did those also will back back see XX-K for our that practice. that million use the had pipeline that, June. a things Houston

to investments we're So that as novo that some deal cash. IT investments will for will only but capital not of well like And robust balance in be continue de M&A the in that, paid other a that making. cash still use pretty investments for we'll also after centers have as

have But not lot ended clearly, firepower, with only we of of we the a a cash, with at lot of million capacity $XXX year-end.

undrawn million have $XXX We revolving line upon unfunded credit. of

ratio -- Our now leverage net our leverage Xx. is debt below

we of so debt a capacity. lot have And

business and the opportunities if this have to grow execute we continue capacity arise. on should they to So M&A certainly

Got do and in in will are pursue while learn it. first? the it of you for kind you you that going market novo And think a marinate area just as to a well? de strategy Or

about specifically Houston? Are you talking

Yes.

Yes.

more be opportunities, operators novel But side for existing the will it's an emphasis had entered think to year it probably the next other acquisition would an on to other is or interest in side for of be novos markets new in there to we're novos, been de any, But who will at the I couple it market. in and say I a strategy acquisition of hospital we if that see mostly of shows what that looking than into from our it. but of rather and de Houston similar we've then X, acquisitions years. wait X maybe

Sidoti The Jim next question with & comes from Sidoti Co.

it's try know time, for I Thank and you the long be a I'll been so though. call, quick.

how one, you have quick do operating a centers many So of today? as

year? that. far mean this take XXX, As in actually, of when say that today, calendar first the today, more maybe than quarter we you so Because you back. have I that

Right.

somewhere Well, made opened small right but we've other XXX de will, some a if you X.XX to probably around now. novos finally up, have in acquisitions. Yes. probably we're We're couple of

we've some and talked novos of by be expect de which We acquisitions XXX. year-end with activities, about, the around to all

and in come revenue last you you Okay. Texas include And the guidance expect that night, additional the provided does to online? centers centers X

which in it. the X up not deal, that quarter, the point Texas be that second will acquisitions does the announced. have includes end it Well, to include It centers during Yes. close we'll from yet that closing be we other any

the can to you And reimbursement comment on and it in on they Texas how coast? compare a Okay. make reimbursement to rates on compares the just reimbursement the -- how

well as be The be well It's it's Medicare large coast you a care Medicare primarily Arizona, Arizona in as environment population. both going -- population Arizona to here, is And population. to assure a large I there's because better. challenging a California, going has as in managed as can

So our and they original due better rates Arizona are the with than significantly Texas in reimbursement comfortable in we diligence California. showed us were being that

with less commercial government more Yes, pay. patients,

expense quick for capital X you on ones. is then you'll net XXXX? the XXXX, And more income in you interest any just guidance for right. that interest straight interest gain that raised All The Okay. of Or is gave expense?

for our of be to interest it's is for our our Yes, counterparties. of it's is we also X XXXX how This that. it's which -- of any of net balance. is interest cash -- our reported on One expense of cash asking Thank reported how things. earned to we million. me, year Yes. net swap And payments excuse this you net $XX.X for and from income

through activity? don't acquisition the year, it's up, start go continue down depending progress free that as assume guess, come to rates. number assuming because some should again, at generate I But you on to increasing. increase the your of in I more So point, rates cash

Yes.

received I because counterparties think of the million in nature our of interest $XX money XXXX, about on our in -- we swaps swaps. from the rate

at 'XX, some 'XX, expense, at the generation start year, point, cash number flow going up years? that think you level you should free overall in strong just because least it's to I'm of that, those though would interest this saying off while have

Yes.

And they are right. product? support and then physicians to things happy get one All Okay. they that Or from the other of last the plenty the can on have do? they

referring physicians radiologist the you say physician? or a you When talking about on are

of any radiologists all radiologists. are kind give No, they to... Are happy you at to pushback the

if upset took they'd away contrary, very the be from them. On it we

the second areas better all we greater adversely they radiologists to It's and opinion the where a eye. second that level. a to helps feel a I this think confidence introduced almost So them are that like analyze read, them for radiologists less human that have and visible one getting

radiology our within success overwhelming an community been it's mammographers. of So

impact you're assume I not this if financial gets adopted? And seeing technology any negative

up really can No, there's to that's The to have patient scan not. this mean, I the to or patient. added elect not. value their

choice. their it's So

But in are or Right. are us whether adopts the do this radiology Right. same, terms patient the what or not? elects the fees their that fees to

Yes. Yes.

Okay.

Just wanted to be clear that. on

the closing question-and-answer I like Dr. Berger our to back to session. would conference concludes any turn This for remarks. over

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

attending has The for Thank concluded. now you conference today's presentation.

disconnect. may now You